Document:

Employment Agreement - Eugene Bauer

 Exhibit 10.15 
 EMPLOYMENT AGREEMENT 
 THIS EMPLOYMENT AGREEMENT (“Agreement”) is made and entered
into as of August 18, 2008 (the “Effective Date”) by and between Peplin, Inc. (the “Company”) and Eugene Bauer, MD (“Executive”). 
 WHEREAS, Executive and the Company desire to enter into an employment relationship; 
 WHEREAS, the Company and Executive (the “Parties”) wish to specify in writing the terms under which Executive is employed. 

THEREFORE, the Parties agree as follows: 
  

	1.	EMPLOYMENT PERIOD 

 1.1      Employment Period. This Agreement shall commence on the Effective Date and shall continue on an at-will basis on the terms and conditions set forth below until Executive’s employment
is terminated as provided in Section 5. The period during which Executive’s employment continues in effect shall be referred to as the “Employment Period.” 
  

	2.	DUTIES AND RESPONSIBILITIES 

 2.1      Position and Duties. Executive shall serve as the President and Chief Medical Officer of the Company, and shall report directly to the Company’s Chief Executive Officer (the
“CEO”). The termination of employment pursuant to this Agreement shall not affect Executive’s service as a member of the Board of Directors of the Company (the “Board”). Executive shall have such authority,
duties and responsibilities as ordinarily assigned to an employee holding such position, including without limitation, principal accountability for all medical activities of the Company. Executive shall also have such additional authority, duties
and responsibilities as assigned to Executive by the Company from time to time with Executive’s consent. Executive shall comply with all proper and reasonable directives and instructions of the CEO, the Board and/or any committee of the Board.

 2.2      Devotion of Time and Effort. Executive shall use Executive’s good faith best
efforts and judgment in performing Executive’s duties as required hereunder and shall act in the best interests of the Company. Executive shall devote substantially all of Executive’s business time, attention and energies to the business
of the Company, except as otherwise permitted in accordance with Sections 2.3 and 4.1. 
 2.3      Other
Activities. Executive may engage in other activities for Executive’s own account while employed hereunder, including without limitation, charitable, community and other business activities, provided that such other activities do not
materially interfere with the performance of Executive’s duties hereunder, and do not violate Section 4. With regard to any activities other than charitable or community activities, Executive shall notify the Board of all such activities
and shall not begin such activities until Executive receives written approval from the Board, which shall not be unreasonably withheld or unduly delayed. The outside activities 

 
listed on Exhibit B hereto shall be deemed approved. This Section 2.3 shall not apply to passive ownership by Executive of securities representing
either: 
 (a) less than one percent (1%) of the securities of a publicly traded entity at the time of Executive’s investment; or

 (b) less than $500,000 and less than five percent (5%) of the securities of any entity that is not a publicly traded. 
  

	3.	COMPENSATION 

 3.1      Base Compensation. 
 Executive shall be paid a salary at the annual rate of
$290,000 (the “Base Compensation”) during the Employment Period. The Base Compensation shall be paid at periodic intervals in accordance with the Company’s payroll practices for salaried employees. The Base Compensation shall
be reviewed at least annually, and may be increased, but may be decreased only in the event of a decrease of base compensation of all officers of the Company, and then by no greater percentage than the percentage decrease to the base compensation of
all such officers. In the event that the Base Compensation is increased or decreased according to this Section 3.1, the new compensation shall be the Base Compensation for purposes of this Agreement thereafter. 
 3.2      Bonus Compensation. 
 For each calendar year during the Employment Period, Executive shall be eligible to receive a cash bonus (the “Performance Bonus”). For 2008, Executive shall receive a Performance Bonus of $40,000.
For each calendar year during the Employment Period after 2008, Executive shall be eligible for a Performance Bonus with a target award of thirty (30%) of Executive’s Base Compensation paid the year for which the Performance Bonus is paid.
The actual amount of the Performance Bonus awarded for 2009 and thereafter shall be determined by the Compensation Committee (the “Committee”) of the Board based on Executive’s achievement of certain individual performance
goals and the Company’s achievement of certain operating, financial or other corporate goals established by the Committee. The Performance Bonus shall be paid no later than March 15 of the year following the year for which the Performance
Bonus was awarded. Executive must be employed by the Company through the end of the year for which the Performance Bonus is awarded and through the payment date. 
 3.3      Stock Option Grant. 
 Subject to the approval of the
shareholders of the Company, the Company shall grant Executive a stock option (the “Stock Option”) under the Peplin, Inc. 2007 Incentive Award Plan (the “2007 Plan”), or subject to substantially the same terms as
provided in the 2007 Plan, to purchase one hundred thousand (100,000) shares of the Company’s common stock at a per share exercise price equal to the Fair Market Value (as defined in the 2007 Plan) of the Company’s common stock on the
grant date. The Stock Option shall be granted on or before October 30, 2008 and shall vest and become exercisable as follows: twenty-five thousand (25,000) shares shall vest and become exercisable on the first anniversary of the Effective
Date, 

  

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and the remaining seventy-five thousand (75,000) shares shall vest and become exercisable in thirty-six equal installments at the end of each month
beginning with the thirteenth (13th) and ending with the through forty-eighth (48th
) month following the effective date, except as otherwise provided in Section 5.10 and the terms and conditions of the 2007 Plan and the applicable award agreement. 
 3.4      Benefits. During the Employment Period, Executive shall be entitled to participate in all pension,
401(k) and other employee benefit plans, including without limitation, medical, dental, vision, disability and life insurance plans, in accordance with the terms of such plans or policies as they may be in effect from time to time, on the same basis
as other executive-level employees of the Company. 
 3.4      Vacation. Executive shall be
entitled to twenty (20) days of paid vacation annually during the Employment Period. Executive’s vacation pay shall not be subject to the Company’s policies applicable to non-executive employees concerning accrual, use and scheduling
of vacation, as such policies may be in effect from time to time. Executive’s vacation pay shall vest in equal increments each pay period during each year, and Executive shall cease accruing additional vacation pay during any period in which
his balance of accrued, unused vacation pay is thirty (30) days. Executive must make reasonable efforts to be accessible to the Company during periods of vacation. 
 3.5      Business Expenses. Executive shall be entitled to reimbursement of reasonable business expenses actually incurred by Executive in accordance with Company policies,
as they may be in effect from time to time. With respect to airline tickets, the Company shall reimburse executive for economy class airfare for domestic trips less than four (4) hours in scheduled duration, and for business class airfare (or
first class airfare if business class is not available) for domestic trips of four (4) hours or greater in scheduled duration and all international trips. All expense reimbursements shall be made not later than thirty (30) days after
submission of a request for reimbursement by Executive with appropriate supporting evidence of the expense. 
  

	4.	RESTRICTIVE COVENANTS 

 4.1      Exclusive Service. During the Employment Period, Executive shall devote substantially all of Executive’s business time, attention and energies to the business of the Company, except
as otherwise permitted in accordance with Section 2.3 and this Section 4.1. During the Employment Period, Executive shall not directly or indirectly provide services to or through any person or entity, except the Company, unless otherwise
authorized by the Board in writing. However, Executive may continue to serve during the Employment Period as a consultant and/or non-employee member of the board of directors of the companies for which Executive serves on the effective date of this
Agreement, which companies and the scope of such outside activities are listed on Exhibit B hereto, and may join the board of directors of other companies in the future with the Board’s prior written consent. Executive shall have the right to
perform such incidental services as are necessary in connection with (i) Executive’s private investments, but only if Executive is not obligated or required to (and shall not in fact) devote any significant managerial efforts, and
(ii) Executive’s charitable or community activities, or participation in trade or professional organizations, but only if such incidental services do not materially interfere with the performance of Executive’s services, or violate
Section 4.4. 
  

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 4.2      Confidential Information. During the Employment
Period, Executive will have access to and become acquainted with various information relating to the Company’s business operations, including customer and supply lists, customer files, marketing data, business plans, strategies, employee lists,
contracts, financial records and accounts, products in development, product plans, projections and budgets, and similar information. Executive agrees that to the extent such information is not generally known to or available to the public and/or the
industry, and gives the Company an advantage over competitors who do not know of or use such information, such information and documents constitute “Confidential Information” of the Company. Confidential Information shall not
include information which is generally known to the public or in the industry or which becomes known other than through a breach of this Agreement by the Executive. Executive further agrees that any documents relating to the business of the Company,
whether they are prepared by Executive or come into Executive’s possession in any other way, are owned by the Company, shall remain the exclusive property of the Company, and must be returned to the Company upon termination of employment.
Executive shall not use any Confidential Information of the Company, directly or indirectly, for Executive’s own benefit, or the benefit of any person or entity other than the Company, nor shall Executive disclose Confidential Information to
any person or entity other than the Company and its employees or other persons authorized by the Company to receive the information, either during the Employment Period or at any time thereafter, except as may be appropriate for Executive to perform
Executive’s duties as an employee, officer and/or director, directly or indirectly, of the Company. In the event Executive violates this Section 4.2, and such violation is not remedied (if remediable) within thirty (30) days after
delivery to Executive by the Company of a written notice specifically identifying the violation that the Company believes has occurred, then during any period in which Executive is receiving payments or benefits under this Agreement, in addition to
any other remedies the Company may have, the Company may terminate Executive’s compensation and benefits. 
 4.3      Non-Solicitation 
 (a)      Non-Solicitation
of Employees. Executive agrees that during the Executive’s Employment Period and for a period of eighteen (18) months thereafter, Executive shall not, directly or indirectly, through any other individual or entity, solicit any employee
of the Company, to cease his or her employment with the Company, and Executive will not approach any such employee for any such purpose or knowingly authorize the taking of any such action by any other individual or entity. 
 (b)      Non Solicitation of Customers. Executive agrees that during the Employment Period and thereafter,
Executive shall not, without the prior written approval of the Company, directly or indirectly, through or on behalf or any other individual or entity, use any information that constitutes a “trade secret” within the meaning of the Uniform
Trade Secrets Act (“UTSA”) to solicit, entice or induce any business from any of the Company’s customers (including actively sought prospective customers) or suppliers/vendors. 
 4.4      Non-Competition. Executive acknowledges that the Company does business throughout the world. During
the Employment Period, Executive shall not, directly or indirectly, serve as an employee, consultant, officer, director, lender, investor, shareholder, partner, manager or member of any person or entity, or own or act as a sole proprietor of a
business that 

  

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engages in the Business, as defined below, or similar business (a “Competitor”), during that period in any County of the State of
California, any states in the United States of America, any country in Europe, Asia, Australia or South America, other than the Company or its affiliates, or as approved in advance in writing by the CEO of the Company or the Board. For purposes of
this Section 4.4, the “Business” shall refer to the pharmaceutical industry, and such other businesses as the Company may expand into, or have plans to expand into, while Executive is employed by the Company, its parents,
subsidiaries or affiliates. Notwithstanding the foregoing, such restriction shall not apply to any activity identified on Exhibit B or any passive ownership by Executive of securities representing either: 
 (a)      less than one percent (1%) of the securities of a publicly traded entity at the time of Executive’s
investment; or 
 (b)      less than $500,000 and less than five percent (5%) of the securities of any
entity that is not a publicly traded. 
 4.5      Non-Disparagement. The Executive agrees not to
disparage the Company, any of its products or practices, or any of its directors, officers, agents, representatives, stockholders or affiliates, either orally or in writing, at any time. This provision shall not prohibit Executive from making any
statement or taking any action required by applicable law, nor shall it prohibit Executive from making critical comments concerning the Company, any of its products or practices, or any of its directors, officers, agents, representatives,
stockholders or affiliates to the Company, any of its products or practices, or any of its directors, officers, agents, representatives, stockholders or affiliates in the course of performing his duties as Chief Medical Officer and as a Member of
the Board of Directors consistent with his fiduciary obligations. 
 4.6      Injunctive Relief.
The Executive recognizes and acknowledges that a breach of the covenants contained in Section 4 will cause irreparable damage to Company and its goodwill, the exact amount of which will be difficult or impossible to ascertain, and that the
remedies at law for any such breach will be inadequate. Accordingly, the Executive agrees that in the event of a breach of any of the covenants contained in Section 4, in addition to any other remedy which may be available at law or in equity,
the Company will be entitled to specific performance and injunctive relief. 
  

	5.	TERMINATION OF EMPLOYMENT 

 5.1      In General. The Executive’s employment hereunder may be terminated by the Company or the Executive, as applicable, without any breach of this Agreement only as described below in
Sections 5.2-5.7. 
 5.2      Death. Executive’s employment shall terminate on the date of
Executive’s death. 
 5.3      Disability. Unless prohibited by law, the Company may
terminate Executive’s employment if Executive becomes Disabled, as defined below, at any time upon a vote in favor or termination because Executive is Disabled by a majority of the members of the Board of Directors and written notice to
Executive specifying a date of termination not less than thirty (30) days nor more than forty-five (45) days following the date of the written notice. For purposes of this Section 5.3, the term “Disabled” shall mean a
physical or mental incapacity as a 

  

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result of which Executive becomes unable to continue to perform the essential functions of Executive’s job with or without accommodation hereunder for
six (6) consecutive calendar months or for shorter periods aggregating one hundred twenty-five (125) business days in any twelve (12) month period. 
 5.4      By the Company For Cause. The Company may terminate Executive’s employment for Cause, as defined below in this Section 5.4, at any time upon a vote in
favor or termination for Cause by a majority of the members of the Board of Directors and written notice to Executive specifying a date of termination not less than thirty (30) days nor more than forty-five (45) days following the date of
the written notice. Such notice shall specify the subpart(s) of this Section 5 and the facts relied upon by the Board to determine that Cause exists. The Company may relieve Executive of some or all of Executive’s duties between the date
notice is given and the date of termination, and such action shall not constitute Good Reason for Executive to terminate Executive’s employment under Section 5.6. 
 For purposes of this Agreement, “Cause” shall mean the Board’s reasonable determination that one or more of the following
conditions exist: 
  (a)      Executive has been convicted of or pled guilty or no contest to any
felony; 
  (b)      Executive has committed one or more acts of theft, embezzlement or misappropriation
against the Company; or 
  (c)      Executive has materially breached Executive’s obligations under
this Agreement, including without limitation, Section 4, which breach was not remedied, if remediable, within thirty (30) days after delivery to Executive by the Company of a written notice specifically identifying the breach that the
Company believes has occurred. 
 5.5      By the Company Without Cause. The Company may
terminate Executive’s employment without Cause, as defined in Section 5.4, at any time upon a vote in favor of termination without Cause by a majority of the members of the Board of Directors and written notice to Executive specifying a
date of termination not less than thirty (30) days nor more than forty-five (45) days following the date of the written notice. The Company may relieve Executive of some or all of Executive’s duties between the date notice is given
and the date of termination, and such action shall not constitute Good Reason for Executive to terminate Executive’s employment under Section 5.6. 
 5.6      By Executive For Good Reason. Executive may terminate Executive’s employment for Good Reason, as defined below in this Section 5.6, at any time upon
written notice to the Company specifying a date of termination not less than thirty (30) days nor more than forty-five (45) days following the date of the written notice. Such notice shall specify the subpart(s) of this Section 5.6
and the facts relied upon by Executive to determine that Good Reason exists. If the Company cures the breach or violation cited in the notice prior to the date of termination specified in the notice, the Executive may not terminate Executive’s
employment for Good Reason. Between the date notice is given and the date of termination, Executive shall not be employed by any other person or entity, and shall continue to perform Executive’s duties for the Company to the extent Executive is
requested by the Company to do so. The Company 

  

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may relieve Executive of some or all of Executive’s duties between the date notice is given and the date of termination, and such action shall not
constitute Good Reason for Executive to terminate Executive’s employment under Section 5.6. 
 For purposes of this Agreement,
“Good Reason” shall mean: 
  (a)      the Company’s material breach of the
compensation and benefit obligations set forth in Section 3 hereunder; 
  (b)      a material,
substantial, and permanent reduction in Executive’s duties, responsibilities or authority at the Company without Executive’s prior written consent; 
  (c)      a material breach of this Agreement by removing Executive from the position of President and Chief Medical Officer without Executive’s prior written consent; or

  (d)      a material change in the geographic location at which Executive must perform services.

 Executive shall be deemed to have waived Executive’s right to terminate for Good Reason with respect to any such breach or action if
Executive does not notify the Company in writing of such breach or action within thirty (30) days of the event that gives rise to such breach or action. 
 5.7      By Executive Without Good Reason. Executive may terminate Executive’s employment without Good Reason, as defined in Section 5.6 upon written notice to the
Company specifying a date of termination not less than thirty (30) days nor more than forty-five (45) days following the date of the written notice. Between the date notice is given and the date of termination, Executive shall not be
employed by any other person or entity, and shall continue to perform Executive’s duties for the Company to the extent Executive is requested by the Company to do so. 
 5.8      Return of Property. Upon termination of Executive’s employment, Executive shall return to the
Company any and all Company property, materials, or equipment in Executive’s possession. 
 5.9      Severance  
  (a) Termination by Company Without Cause on or before
February 28, 2009, for Cause or by Executive without Good Reason. In the event that Executive’s employment terminates pursuant to Section 5.5 (Without Cause) on or before February 28, 2009, or terminates pursuant to
Section 5.4 (For Cause) or Section 5.7 (Without Good Reason) at any time: (i) Executive, if requested and able to do so, shall continue to render services to the Company pursuant to this Agreement until the Effective Date of
Termination, as defined in this Section 5.9; (ii) Executive shall continue to receive Executive’s Base Compensation and benefits as otherwise provided under this Agreement through the Effective Date of Termination; and
(iii) after the Effective Date of Termination, Executive shall have no further right to receive compensation, benefits or other consideration from the Company, and Executive shall not be entitled to any severance payments or benefits, except as
set forth in the final two paragraphs of 

  

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this Section 5.9 or as required by applicable law or the Company’s pension or welfare benefit plans. The “Effective Date of
Termination” shall be the date specified in the written notice of termination for a termination under Sections 5.4, 5.5, 5.6, or 5.7. 
 (b)      Termination by Company without Cause After February 28, 2009 or by Executive for Good Reason. In the event that Executive is terminated pursuant to Section 5.5
(Without Cause) after February 28, 2009 or pursuant to Section 5.6 (For Good Reason) at any time: (i) Executive, if requested and able to do so, shall continue to render services to the Company pursuant to this Agreement until the
Effective Date of Termination; (ii) Executive shall continue to receive Executive’s Base Compensation and benefits as provided in this Agreement through the Effective Date of Termination; and (iii) Executive shall be entitled to
severance pay and benefits as set forth in subparagraphs (i) through (ii) (the “Severance Benefits”) below provided that not later than sixty (60) days following Executive’s “separation from service”,
within the meaning of Section 409A(a)(2)(A)(i) of the Code and any Treasury Regulations or other guidance issued thereunder (“Separation from Service”), Executive (or Executive’s trust or estate, as applicable) executes
and delivers, and any revocation period required by law has run and Executive (or Executive’s trust or estate, as applicable) has not revoked, a general release of claims against the Company, its Board, its affiliates, and their employees and
agents in the form attached hereto as Exhibit A, or, in the event of a change in the law that would limit the effect of the general release of claims attached as Exhibit A, a general release of claims that would have the same scope and effect as the
general release of claims attached hereto as Exhibit A had as of the Date of this Agreement which shall be provided to Executive not later than one (1) week following Executive’s Separation from Service (the “General
Release”), and Executive is not in material breach of any of the material provisions of this Agreement. 
 (i)      Severance Amount. The Company shall pay Executive his monthly Base Compensation in effect immediately preceding the Effective Date of Termination for a period of six (6) months (the
“Severance Payments”). The Severance Payments shall be made in five (5) installments beginning on the last day of the second full month following Executive’s Separation from Service, with the first payment equal to two
(2) times his monthly Base Compensation, and the remaining four installments each equal to one (1) times his monthly Base Compensation and made on the last day of the third through sixth months following Executive’s Separation from
Service. 
 (ii)      Benefits. Provided that Executive timely elects and remains
eligible for COBRA healthcare continuation benefits, the Company shall pay for the applicable monthly COBRA premium for Executive and Executive’s covered dependents (the “COBRA Amount”) for a period of six (6) months
immediately following the Effective Date of Termination (the “COBRA Benefits”). 
 5.10     CHANGE IN CONTROL ACCELERATED VESTING. 
 Notwithstanding anything to the contrary in any
plan document or award agreement, all unvested portions of the Stock Option shall immediately vest and become exercisable (if applicable) upon the occurrence of a Change in Control during the Employment Period. 
  

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 For purposes of this Agreement, “Change in Control” shall mean each occurrence of any of
the following: 
 (a)      the acquisition, directly or indirectly, by any “person” or
“group” (as those terms are defined in Sections 3(a)(9), 13(d), and 14(d) of the Securities Exchange Act of 1934, as amended, and the rules thereunder (the “Exchange Act”)) of “beneficial ownership” (as
determined pursuant to Rule 13d-3 under the Exchange Act) of securities entitled to vote generally in the election of directors (“voting securities”) of the Company that represent 50% or more of the combined voting power of the
Company’s then outstanding voting securities, other than 
 (i)        an
acquisition by a trustee or other fiduciary holding securities under any employee benefit plan (or related trust) sponsored or maintained by the Company or any person controlled by the Company or by any employee benefit plan (or related trust)
sponsored or maintained by the Company or any person controlled by the Company, or 
 (ii)       an acquisition of voting securities by the Company or a corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of
the stock of the Company, or 
 (iii)      an acquisition of voting securities pursuant to a
transaction described in clause (c) below that would not be a Change in Control under clause (c); 
 Notwithstanding the foregoing, an
acquisition of the Company’s securities by the Company which, either alone or in combination only with the other event, causes the Company’s voting securities beneficially owned by a person or group to represent 50% or more of the combined
voting power of the Company’s then outstanding voting securities shall not constitute an “acquisition” by any person or group for purposes of this clause (a); provided, however, that if a person or group shall become the beneficial
owner of 50% or more of the combined voting power of the Company’s then outstanding voting securities by reason of share acquisitions by the Company as described above and shall, after such share acquisitions by the Company, become the
beneficial owner of any additional voting securities of the Company, then such acquisition shall constitute a Change in Control; 
 (b)      individuals who, as of the date hereof, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board; provided, however, that any
individual becoming a director subsequent to the date hereof whose election, or nomination for election by the Company’s stockholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be
considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the
election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a person other than the Board; 
 (c)      the consummation by the Company (whether directly involving the Company or indirectly involving the Company through one or more intermediaries) of (x) a 

  

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merger, consolidation, reorganization, or business combination or (y) a sale or other disposition of all or substantially all of the Company’s
assets or (z) the acquisition of assets or stock of another entity, in each case, other than a transaction 
 (i)        which results in the Company’s voting securities outstanding immediately before the transaction continuing to represent (either by remaining outstanding or by being converted into
voting securities of the Company or the person that, as a result of the transaction, controls, directly or indirectly, the Company or owns, directly or indirectly, all or substantially all of the Company’s assets or otherwise succeeds to the
business of the Company (the Company or such person, the “Successor Entity”)) directly or indirectly, at least 50% of the combined voting power of the Successor Entity’s outstanding voting securities immediately after the
transaction, and 
 (ii)       after which more than 50% of the members of the board of
directors of the Successor Entity were members of the Incumbent Board at the time of the Board’s approval of the agreement providing for the transaction or other action of the Board approving the transaction, and 
 (iii)      after which no person or group beneficially owns voting securities representing 50% or more of
the combined voting power of the Successor Entity; provided, however, that no person or group shall be treated for purposes of this clause (C) as beneficially owning 50% or more of combined voting power of the Successor Entity solely as
a result of the voting power held in the Company prior to the consummation of the transaction; or 
 (d)      stockholder approval of a liquidation or dissolution of the Company. 
 For purposes of
clause (a) above, the calculation of voting power shall be made as if the date of the acquisition were a record date for a vote of the Company’s stockholders, and for purposes of clause (c) above, the calculation of voting power shall
be made as if the date of the consummation of the transaction were a record date for a vote of the Company’s stockholders. 
 5.11      Certain Additional Payments. If any payment or benefit received or to be received by Executive in connection with a change in control or termination of Executive’s employment
(whether payable pursuant to the terms of this Agreement, a stock option plan or any other plan or arrangement with the Company) (the “Total Payments”) will be subject to the excise tax imposed by Section 4999 of the Code, as
amended, the Company will pay to Executive, within thirty (30) days of any payments giving rise to excise tax, an additional amount (the “gross-up payment”) such that the net amount retained by Executive, after deduction of any
excise tax on the Total Payments and any federal, state and local income and employment tax and excise tax on the gross-up payment provided for by this Section 5.11, will equal the Total Payments. For purposes of determining the amount of the
gross-up payment, Executive will be deemed to pay federal, state and local income taxes at Executive’s actual marginal rate of federal, state and local income taxation in the calendar year that the payment or benefit to which the excise tax
relates is to be made or provided, net of the maximum reduction in federal income taxes that could be obtained at that time by Executive by deducting such state and local taxes. 

  

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For purposes of determining whether any of the Total Payments would not be deductible by the Company and would be subject to the excise tax, and the amount
of such excise tax, (1) Total Payments will be treated as “parachute payments” within the meaning of Section 280G(b)(2) of the Code, and all parachute payments in excess of the base amount within the meaning of
Section 280G(b)(3) will be treated as subject to the excise tax unless, in the opinion of tax counsel selected by the Company’s independent auditors prior to the change in control and acceptable to Executive, such Total Payments (in whole
or in part) are not parachute payments, or such parachute payments in excess of the base amount (in whole or in part) are otherwise not subject to the excise tax, and (2) the value of any non-cash benefits or any deferred payment will be
determined by the Company’s independent auditors in accordance with Sections 280G(d)(3) and (4) of the Code. If the excise tax is subsequently determined to be less than the amount originally taken into account hereunder, Executive
will repay to the Company, when such reduction in excise tax is finally determined, the portion of the gross-up payment attributable to such reduction. If the excise tax is determined to exceed the amount originally taken into account hereunder
(including by reason of any payment, the existence or amount of which cannot be determined at the time of the gross-up payment), the Company will make an additional gross-up payment in respect of such excess (plus any interest payable with respect
to such excess) when such excess if finally determined. The gross-up payment and any payment of any income or other taxes to be paid by the Company under this Section 5.11 shall be made not later than the end of Executive’s taxable year
next following Executive’s taxable year in which Executive remits the related taxes. 
 5.12      Delayed Distribution under Section 409A of the Code. If Executive is a “specified employee,” as defined in Code Section 409A(a)(2)(B)(i), on the date of
Executive’s Separation from Service, the payments or benefits under this Agreement subject to Code Section 409A shall be delayed to the extent necessary to avoid a prohibited distribution under Section 409A(a)(2)(B)(i) of the Code,
and such payments or benefits shall be paid or distributed to Executive (or Executive’s estate) during the thirty (30) day period commencing on the earlier of (a) the expiration of the six (6) month period measured from the date
of Executive’s Separation from Service, or (b) the date of Executive’s death. Upon the expiration of the applicable six (6) month period under Section 409A(a)(2)(B)(i) of the Code, all payments deferred pursuant to this
Section 5.11 shall be paid in a lump sum payment to Executive. Any remaining payments due under the Agreement shall be paid as otherwise provided herein. 
 5.13      No Duty to Mitigate. Executive shall be entitled to the full severance benefits provided under this Section 5, without regard to Executive’s efforts or
lack of efforts to obtain alternative employment, and the severance benefits provided to Executive shall not be reduced by any amounts received by Executive from any other source. 
  

	6.	ARBITRATION AGREEMENT 

 6.1      Claims Subject to Arbitration. Any controversy, dispute or claim between Executive and the Company, or its parents, subsidiaries, affiliates and any of their
officers, directors, agents or other employees, shall be resolved by binding arbitration, at the request of either party. 
  

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 The arbitrability of any controversy, dispute or claim under this Agreement shall be determined by
application of the substantive provisions of the Federal Arbitration Act (9 U.S.C. sections 1 and 2) and by application of the procedural provisions of California law, except as provided herein. Arbitration shall be the exclusive method for
resolving any dispute and all remedies available from a court of competent jurisdiction shall be available; provided, however, that either party may request provisional relief from a court of competent jurisdiction, if such relief is not available
in a timely fashion through arbitration. 
 The claims which are to be arbitrated include, but are not limited to any claim arising out of or
relating to this Agreement or the employment relationship between Executive and the Company, claims for wages and other compensation, claims for breach of contract (express or implied), claims for violation of public policy, wrongful termination,
tort claims, claims for unlawful discrimination and/or harassment (including, but not limited to, race, religious creed, color, national origin, ancestry, physical disability, mental disability, gender identity or expression, medical condition,
marital status, age, pregnancy, sex or sexual orientation) to the extent allowed by law, and claims for violation of any federal, state, or other government law, statute, regulation, or ordinance, except for claims for workers’ compensation and
unemployment insurance benefits. This Agreement shall not be interpreted to provide for arbitration of any dispute that does not constitute a claim recognized under applicable law. 
 6.2      Selection of Arbitrator. Executive and the Company will select a single neutral arbitrator by mutual
agreement. If Executive and the Company are unable to agree on a neutral arbitrator within thirty (30) days of a demand for arbitration, either party may elect to obtain a list of arbitrators from the Judicial Arbitration and Mediation Service
(“JAMS”), and the arbitrator shall be selected by alternate striking of names from the list until a single arbitrator remains. The party initiating the arbitration shall be the first to strike a name. 
 6.3      Demand for Arbitration. The demand for arbitration must be in writing and must be made by the
aggrieved party within the statute of limitations period provided under applicable State and/or Federal law for the particular claim(s). Failure to make a written demand within the applicable statutory period constitutes a waiver of the right to
assert that claim in any forum. 
 6.4      Location of Arbitration. Arbitration proceedings will
be held in Alameda County, California. 
 6.5      Choice of Law. The arbitrator shall apply
California and/or Federal substantive law to determine issues of liability and damages regarding all claims to be arbitrated, and shall apply the Federal Rules of Evidence to the proceeding. 
 6.6      Discovery. The parties shall be entitled to conduct reasonable discovery and the arbitrator shall
have the authority to determine what constitutes reasonable discovery. The arbitrator shall hear motions for summary judgment/adjudication as provided in the Federal Rules of Civil Procedure. 
 6.7      Written Opinion and Award. Within thirty (30) days following the hearing
and the submission of the matter to the arbitrator, the arbitrator shall issue a written opinion and 

  

 12 

 
award which shall be signed and dated. The arbitrator’s award shall decide all issues submitted by the parties, and the arbitrator may not decide any
issue not submitted. The opinion and award shall include factual findings and the reasons upon which the decision is based. The arbitrator shall be permitted to award only those remedies in law or equity which are requested by the parties and
allowed by law. 
 6.8      Costs of Arbitration. The cost of the arbitrator and other incidental
costs of arbitration that would not be incurred in a court proceeding shall be borne by the Company. The parties shall each bear their own costs and attorneys’ fees in any arbitration proceeding, provided, however, that the arbitrator shall
have the authority to require either party to pay the costs and attorneys’ fees of the other party to the extent permitted under applicable federal or state law as a part of any remedy that may be ordered. 
 6.9      Waiver of Right to Jury. Both the Company and Executive understands that by using arbitration to
resolve disputes they are giving up any right that they may have to a judge or jury trial with regard to all issues concerning employment or otherwise covered by this Section 6. 
  

	7.	GENERAL PROVISIONS 

 7.1      Withholding. The Company shall deduct and withhold from any payments to Executive, including but not limited to payments of Executive’s Base Compensation and Bonus Compensation, any
and all applicable Federal, State and local income and employment withholding taxes and any other amounts required to be deducted or withheld by the Company under applicable statutes, regulations, ordinances or orders. The Company shall also deduct
such amounts as may be authorized by Executive from time to time. 
 7.2      Assignment and
Successors. The Company may assign its rights and obligations under this Agreement to any entity which is a successor to all or substantially all the assets of the Company, by merger or otherwise, and may assign or encumber this Agreement
and its rights hereunder as security for indebtedness of the Company and its affiliates. The Executive may not assign his rights or obligations under this Agreement to any individual or entity. This Agreement shall be binding upon and inure to the
benefit of the Company, the Executive and their respective successors, assigns, personnel and legal representatives, executors, administrators, heirs, distributees, devisees, and legatees, as applicable. 
 7.3      Notices. All notices, requests, demands and other communications that are required or may be given
under this Agreement shall be in writing and shall be deemed to have been duly given when received if: (i) personally delivered, when transmitted if transmitted by telecopy, electronic or digital transmission method with electronic confirmation
of receipt; (ii) the day after it is sent, if sent for next-day delivery to a domestic address by recognized overnight delivery service (e.g., FedEx); and (iii) upon receipt, if sent by certified or registered mail, return receipt
requested. In each case notice shall be sent to: 
  

 13 

			
	If to the Company:	 	
		 	 Peplin, Inc.
 6475 Christie Avenue
 Suite 300
 Emeryville, CA 94608
 Attention: Chairman of the Compensation
 Committee of the Board of Directors

 Facsimile: 510-653-9704

		
	with a copy to:	 	 Latham & Watkins LLP
 650 Town Center
Drive
 Suite 2000
 Costa Mesa, CA 92626
 Attention: B. Shayne Kennedy
 Facsimile: 714-755-8290

		
	If to Executive:	 	 Eugene Bauer, MD
 59 Montecito Road
 San Rafael, CA 94901
 Facsimile: (415) 457-6432

 Any party may change its address for the purpose of this Section 7.3 by giving the other
party written notice of its new address in the manner set forth above. 
 7.4      Entire
Agreement. This Agreement constitutes the entire agreement of the parties with respect to the subject matter hereof, and supersedes all prior representations, warranties, agreements and understandings, both written and oral, made by the
Company or any of its affiliates, representatives or agents with respect to the terms and conditions of Executive’s employment; provided, however, that this Agreement shall: (a) supplement, not supersede, any prior agreements concerning
the Confidential Information or other intellectual property of the Company, and any conflicts or inconsistencies between such agreements shall be resolved so that the provision providing greater rights to the Company shall prevail; and (b) not
supersede, limit or amend Executive’s rights under any equity-based compensation arrangement, including without limitation any options or restricted stock granted to Executive, except as expressly set forth in this Agreement. 
 7.5      Amendments; Waivers. This Agreement may be amended or modified, and any of the terms and covenants
may be waived, only by a written instrument executed by the parties hereto, or, in the case of a waiver, by the party waiving compliance. Any waiver by any party in any one or more instances of any term or covenant contained in this Agreement shall
neither be deemed to be nor construed as a further or continuing waiver of any such term or covenant of this Agreement. 
 7.6      Provisions Severable. In case any one or more provisions of this Agreement shall be invalid, illegal or unenforceable, in any respect, the validity, legality and enforceability of the
remaining provisions contained herein shall not, in any way, be affected or impaired 

  

 14 

 
thereby. If any provision hereof is determined by any court of competent jurisdiction to be invalid or unenforceable by reason of such provision extending
the covenants and agreements contained herein for too great a period of time or over too great a geographical area, or being too extensive in any other respect, such provision shall be interpreted to extend only over the maximum period of time and
geographical area, and to the maximum extent in all other respects, as to which it is valid and enforceable, all as determined by such court in such action. 
 7.7      Attorneys’ Fees. If any legal action, arbitration or other proceeding, is brought for the enforcement of this Agreement, or because of an alleged dispute,
breach or default in connection with any of the provisions of this Agreement, each of the parties hereto shall be responsible for payment of their own attorneys’ fees and other costs incurred by them in that action or proceeding, without regard
to whomever is the prevailing party in such action or proceeding with respect to such claims, except as otherwise provided in Section 6. 
 7.8      Governing Law. This Agreement shall be construed, performed and enforced in accordance with, and governed by the laws of the State of California without giving effect to the principles of
conflict of laws thereof. 
 7.9      Cooperation. During Executive’s employment with the
Company and thereafter, Executive agrees to cooperate with the Company and its agents, accountants and attorneys concerning any matter with which Executive was involved during Executive’s employment. Such cooperation shall include, but not be
limited to, providing information, meeting with and reviewing documents provided by the Company and its agents, accountants and attorneys during normal business hours or other mutually agreeable hours upon reasonable notice and making himself
available for depositions and hearings, if requested and upon reasonable notice. If Executive’s cooperation is required after the termination of Executive’s employment, the Company shall reimburse Executive for any reasonable out of pocket
expenses incurred and any wages lost by Executive in the course of performing his obligations hereunder. 
 7.10      Headings. The headings contained in this Agreement are provided solely for the Parties’ convenience and shall not be deemed to alter the meaning of the text of the Agreement.

 7.11      Construction. This Agreement shall be deemed drafted equally by both the parties.
Its language shall be construed as a whole and according to its fair meaning. Any presumption or principle that the language is to be construed against any party shall not apply. The headings in this Agreement are only for convenience and are not
intended to affect construction or interpretation. Any references to paragraphs, subparagraphs, sections or subsections are to those parts of this Agreement, unless the context clearly indicates to the contrary. Also, unless the context clearly
indicates to the contrary, (a) the plural includes the singular and the singular includes the plural; (b) “or” is used both conjunctively and disjunctively; (c) “any,” “all,” “each,” or
“every” means “any and all,” and “each and every”; (d) “includes” and “including” are each “without limitation”; (e) “herein,” “hereof,” “hereunder”
and other similar compounds of the word “here” refer to the entire Agreement and not to any particular paragraph, subparagraph, section or subsection; and (f) all pronouns and any variations thereof shall be deemed to refer to the
masculine, feminine, neuter, singular or plural as the identity of the entities or persons referred to may require. 
  

 15 

 7.12      Survival. The expiration or termination of the
Employment Period shall not impair: (i) the rights or obligations of any party hereto under Sections 4, 6 and 7, or (ii) the Company’s obligation to make and Executive’s right to receive any payment pursuant to Section 5.8
through 5.12 if such right accrued prior to or as a result of the expiration or termination. 
 7.13      Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which shall constitute the same instrument. 
 IN WITNESS WHEREOF, the parties have executed this Agreement on the date and year first above written. 
  

			
	COMPANY
		
	By:	 	 /s/ James Scopa

	
	Member of the Board of Directors and the Compensation Committee of the Board of Directors
	
	EXECUTIVE
		
	By:	 	 /s/ Eugene Bauer, M.D.

		 	Eugene Bauer, MD

  

 16 

 Exhibit A 
 GENERAL RELEASE AGREEMENT 
 This General Release of Claims (this “Release”) is made
by Eugene Bauer, MD (“Executive”) in favor of Peplin, Inc. (the “Company”) and the “Company Releasees” (as defined below), as of the date of Executive’s execution of this Release. 
  

	1.	RELEASE BY EXECUTIVE 

 1.1      General Release. In exchange for the Severance Benefits as defined in the Employment Agreement entered into by and between the Company and Executive, dated as of [DATE] to which
this Release is an exhibit (the “Employment Agreement”), Executive does hereby release and forever discharge the “Company Releasees” herein, consisting of the Company, its parent, subsidiary and affiliate
corporations, and each of their respective past and present parents, subsidiaries, affiliates, associates, owners, members, stockholders, predecessors, successors, assigns, employees, agents, directors, officers, partners, representatives, lawyers,
and all persons acting by, through, under, or in concert with them, or any of them, of and from any and all manner of claims or causes of action, in law or in equity, of any nature whatsoever, known or unknown, fixed or contingent (hereinafter
called “Claims”), that Executive now has or may hereafter have against the Company Releasees by reason of any and all acts, omissions, events or facts occurring or existing prior to Executive’s execution of this Release. The
Claims released hereunder include, without limitation, any alleged breach of any express or implied agreement (including without limitation the Employment Agreement); any alleged torts or other alleged legal restrictions relating to the
Executive’s service to the Company and the termination thereof; and any alleged violation of any federal, state or local statute or ordinance including, without limitation, Claims arising under: the Age Discrimination in Employment Act as
amended, 29 U.S.C. § 621 et seq.; Title VII of the Civil Rights Act of 1964, as amended by the Civil Rights Act of 1991, 42 U.S.C. § 2000 et seq.; Equal Pay Act, as amended, 29 U.S.C. § 206(d); the Civil Rights Act
of 1866, 42 U.S.C. § 1981; the Family and Medical Leave Act of 1993, 29 U.S.C. § 2601 et seq.; the Americans with Disabilities Act of 1990, 42 U.S.C. § 12101 et seq.; the False Claims Act , 31 U.S.C. § 3729 et
seq.; the Employee Retirement Income Security Act, as amended, 29 U.S.C. § 1001 et seq.; the Worker Adjustment and Retraining Notification Act, as amended, 29 U.S.C. § 2101 et seq. the Fair Labor
Standards Act, 29 U.S.C. § 215 et seq., the Sarbanes-Oxley Act of 2002; the California Fair Employment and Housing Act, as amended, Cal. Lab. Code § 12940 et seq.; the California Equal Pay Law, as amended, Cal. Lab.
Code §§ 1197.5(a),1199.5; the Moore-Brown-Roberti Family Rights Act of 1991, as amended, Cal. Gov’t Code §§12945.2, 19702.3; California Labor Code §§ 1101, 1102, 69 Ops. Cal. Atty. Gen. 80 (1986); California Labor
Code §§ 1102.5(a),(b); the California WARN Act, Cal. Lab. Code § 1400 et seq.; the California False Claims Act, Cal. Gov’t Code § 12650 et seq.; the California Corporate Criminal Liability Act, Cal. Penal Code
§ 387; or under the California Labor Code); and any federal, state or local laws of similar effect. This release shall not apply to the Company’s obligations to provide severance benefits under the Employment Agreement, to Executive’s
rights to indemnification under the Articles or Bylaws of the Company or applicable law, to claims for workers’ compensation benefits, or Executive’s vested rights under any stock 

 
option, restricted stock, retirement or welfare benefit plan, or any other rights that may not be waived by private agreement. 
 1.2      Rights Under the Older Worker’s Benefit Protection Act 
 Executive agrees and expressly acknowledges that this Release includes a waiver and release of all claims which Executive has or may have under the Older
Worker’s Benefit Protection Act and the ADEA. The following terms and conditions apply to and are part of the waiver and release of the Older Worker’s Benefit Protection Act claims and ADEA claims under this Release: 
  (a)      This paragraph, and this Release are written in a manner calculated to be understood by Executive.

  (b)      The waiver and release of claims under the ADEA contained in this Release does not cover
rights or claims that may arise after the date on which Executive signs this Release. 
  (c)      The
Severance Benefits (as defined in the Employment Agreement) provide for consideration in exchange for this release in addition to anything of value to which Executive is already entitled. 
  (d)      Executive has been advised to consult an attorney before signing this Release and the Employment Agreement.

  (e)      Executive has been granted not less than twenty-one (21) days (or forty-five
(45) days in the event of an exit incentive or other employment termination program) after Executive is presented with this Release and the Effective Date of Termination (as defined in the Employment Agreement) to decide whether or not to sign
this Release. If Executive executes this Release prior to the expiration of such period, Executive does so voluntarily and after having had the opportunity to consult with an attorney, and hereby waives the remainder of the twenty-one (21) day
period (or forty-five (45) day period, if applicable). 
  (f)      Executive has the right to
revoke this Release within seven (7) days of signing this Release. In the event this Release is revoked, Executive understands that this Release will be null and void, and Executive will not be entitled to any the Severance Benefits which are
expressly conditioned upon the execution and non-revocation of this Release. 
  If Executive wishes to revoke this Release, Executive
shall deliver written notice stating Executive’s intent to revoke this Release to the Chairman of the Board of Directors, at the offices of the Company, on or before 5:00 p.m. on the seventh (7th) day after the date on which Executive signs this Release. 
 1.3      No Assignment. Executive represents and warrants to the Company Releasees that there has been no assignment or other transfer of any interest in any Claim that the Executive may have against the
Company Releasees, or any of them. Executive agrees to indemnify and hold harmless the Company Releasees from any liability, claims, demands, damages, costs, expenses and attorneys’ fees incurred as a result of any person asserting such 

  

 A-2 

 
assignment or transfer of any right or claims under any such assignment or transfer from Executive. 
 1.4      No Actions. Executive agrees that if Executive hereafter commences, joins in, or in any manner seeks relief
through any suit arising out of, based upon, or relating to any of the Claims released hereunder or in any manner asserts against the Company Releasees any of the Claims released hereunder, then Executive will pay to the Company Releasees against
whom such claim(s) is asserted, in addition to any other damages caused thereby, all attorneys’ fees incurred by such Company Releasees in defending or otherwise responding to said suit or Claim. Provided, however, that Executive shall not be
obligated to pay the Company Releasees’ attorneys’ fees to the extent such fees are attributable to claims under the ADEA or a challenge to the validity of the release of claims under the ADEA. 
  

	2.	MISCELLANEOUS 

 2.1      No Admission. Executive understands and agrees that neither the payment of money nor the execution of this Release shall constitute or be construed as an admission of any liability
whatsoever by the Company Releasees. 
 2.2      Severability. The provisions of this Release are
severable, and if any part of this Release is found to be unenforceable, the other paragraphs (or portions thereof) shall remain fully valid and enforceable. 
 2.3      No Encouragement of Actions Against the Company. Executive agrees that except to the extent required by law, Executive will not assist any person in bringing or
pursuing legal action against the Company, its agents, successors, representatives, employees and related and/or affiliated companies, based on events occurring prior to Executive’s execution of this Release. Nothing contained in this Release
shall be interpreted to discourage or prohibit Executive with cooperating with any federal, state, local or foreign law enforcement authority in an civil or criminal investigation or prosecution by such authority. 
 2.4      Headings. The headings in this Release are provided solely for convenience, and are not intended to
be part of, nor to affect or alter the interpretation or meaning of, this Release. 
 2.5      Construction of Agreement. Executive has been represented by, or had the opportunity to be represented by, counsel in connection with the negotiation and execution of this Release. Any
rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not be applied in the construction or interpretation of this Release. 
  

							
		 		  	Executive	  	
				
	Date:                                      
          	 		  	  
	  	
		 		  	  
	  	

  

 A-3 

 Exhibit B 
 LIST OF APPROVED OUTSIDE ACTIVITIES 
  

							
	Company	 	 Company
 Focus
  
	 	Position	 	 Estimated
Time
 Commitment

	 Arbor Vita Corp –
 Privately held;
 Sunnyvale, CA
	 	 Development of
 biopharmaceuticals
 using PDZ
 technology
  
	 	Board of Directors	 	4-6 meetings each year; all local; occasional telephonic meetings
	 MediSync
 Bioservices, Inc. –
 Privately held;
 New York, NY
  
	 	 Holding
 company for
 CRO services
	 	Board of Directors	 	4 meetings each year; mostly in New York; occasional telephonic meetings; occasional investor
presentations
	 Protalex, Inc, –
 Nasdaq OTC:
 PRTX; New Hope,
 PA
	 	 Biologic therapy
 for autoimmune
 diseases,
 including ITP,
 RA, pemphigus
  
	 	Board of Directors	 	4 meetings each year; mostly in New Hope; occasional telephonic meetings; occasional investor
presentations
	 GliaMed, Inc. –
 Privately held;
 New York, NY
	 	 Stem cell
 therapy for skin
 regeneration
  
	 	Board of Directors	 	4-6 meetings each year; about one-half telephonic; occasional investor presentations
	 Medgenics, Inc. –
 LSE/AIM: MEDG;
 Misgav, Israel
	 	 Biologic (gene)
 therapy for
 protein-replacement
 disorders (e.g.,
 renal anemia)
	 	Board of Directors	 	 8 meetings each year; one-half telephonic; typical meeting
schedule – two in US, one in London, one in Israel; occasional investor presentations
  

	 WaferGen, Inc. –
 Nasdaq OTC:
 WGBS; Fremont,
 CA
  
	 	 Gene array
 technologies
	 	Scientific Advisory Board	 	4 meetings each year; all local

  

 A-4Employment Agreement - Thomas Wiggans

 Exhibit 10.16 
 EMPLOYMENT AGREEMENT 
 THIS EMPLOYMENT AGREEMENT (“Agreement”) is made and entered
into as of August 15, 2008 (the “Effective Date”) by and between Peplin, Inc. (the “Company”) and Thomas Wiggans (“Executive”). 
 WHEREAS, Executive and the Company desire to enter into an employment relationship; 
 WHEREAS, the Company and Executive (the “Parties”) wish to specify in writing the terms under which Executive is employed. 

THEREFORE, the Parties agree as follows: 
  

	1.	EMPLOYMENT PERIOD 

 1.1      Employment Period. This Agreement shall commence on the Effective Date and shall continue on the terms and conditions set forth below until Executive’s employment is terminated as
provided in Section 5. The period during which Executive’s employment continues in effect shall be referred to as the “Employment Period.” 
  

	2.	DUTIES AND RESPONSIBILITIES 

 2.1      Position and Duties. Executive shall serve as the Chief Executive Officer of the Company, and shall report directly to the Company’s Board of Directors (the
“Board”). Executive is currently serving as Chairman of the Board, and is willing to continue to do so, so long as he is duly elected, through at least June 30, 2010. The termination of employment pursuant to this Agreement
shall not affect Executive’s service as Chairman of the Board of Directors. Executive shall have such authority, duties and responsibilities as ordinarily assigned to an employee holding such position. Executive shall also have such additional
authority, duties and responsibilities as assigned to Executive by the Company from time to time with Executive’s consent. Executive shall comply with all proper and reasonable directives and instructions of the Board and/or any committee of
the Board. 
 2.2      Devotion of Time and Effort. Executive shall use Executive’s good
faith best efforts and judgment in performing Executive’s duties as required hereunder and shall act in the best interests of the Company. Executive shall devote substantially all of Executive’s business time, attention and energies to the
business of the Company, except as otherwise permitted in accordance with Sections 2.3 and 4.1. 
 2.3      Other Activities. Executive may engage in other activities for Executive’s own account while employed hereunder, including without limitation, charitable, community and other
business activities, provided that such other activities do not materially interfere with the performance of Executive’s duties hereunder, and do not violate Section 4. With regard to any activities other than charitable or community
activities, Executive shall notify the Board of all such activities and shall not begin such activities until Executive receives written approval from the Board, which shall not be unreasonably withheld or unduly delayed. The outside activities

 
listed on Exhibit B hereto shall be deemed approved. This Section 2.3 shall not apply to passive ownership by Executive of securities representing
either: 
   (a)      less than one percent (1%) of the securities of a publicly traded entity
at the time of Executive’s investment; or 
   (b)      less than $500,000 and less than five
percent (5%) of the securities of any entity that is not a publicly traded. 
  

	3.	COMPENSATION 

 3.1      Base Compensation. 
   Executive shall be paid a salary at the
annual rate of $350,000 (the “Base Compensation”) during the Employment Period. The Base Compensation shall be paid at periodic intervals in accordance with the Company’s payroll practices for salaried employees. The Base
Compensation shall be reviewed at least annually, and may be increased, but may be decreased only in the event of a decrease of base compensation of all officers of the Company, and then by no greater percentage than the percentage decrease to the
base compensation of all such officers. In the event that the Base Compensation is increased or decreased according to this Section 3.1, the new compensation shall be the Base Compensation for purposes of this Agreement thereafter. 

3.2      Bonus Compensation. 
   (a)      Performance Bonus. For each calendar year during the Employment Period, Executive shall be
eligible to receive a cash bonus (the “Performance Bonus”). For 2008, Executive shall receive a Performance Bonus of $100,000. For each calendar year during the Employment Period after 2008, Executive shall be eligible for a
Performance Bonus with a target range of $125,000 to $175,000. The actual amount of the Performance Bonus for 2009 and thereafter shall be determined by the Compensation Committee (the “Committee”) of the Board based on
Executive’s achievement of certain individual performance goals and the Company’s achievement of certain operating, financial or other corporate goals established by the Committee. The Performance Bonus for 2008 shall be paid no later than
January 15, 2009, and the Performance Bonuses for 2009 and thereafter shall be paid no later than March 15 of the year following the year for which the Performance Bonus was awarded. Executive must be employed by the Company through the
end of the year for which the Performance Bonus is awarded and through the time the Performance Bonus is paid to earn that Performance Bonus. For purposes of establishing continued employment through the end of the year for which the Performance
Bonus is awarded and the time the Performance Bonus is paid for the 2009 and later Performance Bonuses, it shall be sufficient that Executive was employed as Chief Executive Officer through any portion or all of the last quarter of the year for
which the Performance Bonus is paid and continued in the role of Chief Executive Officer or Chairman of the Board of Directors through the payment date. 
   (b)      Change in Control Bonus. If during the Employment Period, the Company experiences a Change in Control, as defined in Section 5.10, and such Change in
Control is recommended by the Board to the shareholders and approved by a shareholder vote, 

  

 2 

 
Executive shall receive a payment of $500,000 upon the occurrence of the Change in Control (the “Change in Control Bonus”). The Change in
Control Bonus shall be awarded upon the first qualifying Change in Control only. 
 3.3      Restricted
Stock and Stock Option Grant. 
   (a)       Subject to the approval of the shareholders of
the Company, the Company shall grant Executive a stock option (the “Stock Option”) under the Peplin, Inc. 2007 Incentive Award Plan (the “2007 Plan”), or subject to substantially the same terms as provided in the
2007 Plan, to purchase two hundred and twenty-five thousand (225,000) shares of the Company’s common stock at a per share exercise price equal to the Fair Market Value (as defined in the 2007 Plan) of the Company’s common stock on the
grant date. The Stock Option shall be granted on or before October 30, 2008 and shall vest and become exercisable as follows: (i) fifty (50) percent of the Stock Option shall be vested and exercisable on June 30, 2009, subject to
Executive’s continued employment with the Company through the vesting date (except as otherwise provided in Section 5.10) and the terms and conditions of the 2007 Plan and the applicable award agreement; (ii) the remaining fifty
(50) percent of the Stock Option shall become exercisable in twelve (12) equal installments on the last day of each month from July 2009 through June 2010, subject to Executive’s continued employment with the Company though the
vesting dates (except as otherwise provided in Section 5.10) and the terms and conditions of the 2007 Plan and the applicable award agreement. For purposes of establishing continued employment for the vesting of the final nine (9) monthly
installments of the second fifty (50) percent of the Stock Option, it shall be sufficient that Executive vested in the first fifty (50) percent of the Stock Option and the first three (3) installments of the second fifty
(50) percent of the Stock Option and continued in the role of Chief Executive Officer or Chairman of the Board of Directors through the vesting date of the each of the nine (9) final installments. The Stock Option shall be an
“incentive stock option,” within the meaning of Section 422(b) of the Internal Revenue Code of 1986, as amended (the “Code”), to the maximum extent permissible. In the event Executive’s employment is terminated
by the Company on or after February 28, 2009 without Cause pursuant to Section 5.5 of this Agreement, but prior to June 30, 2009, Executive shall be immediately vested in the fifty (50) percent of the Stock Option that would
become vested and exercisable had he remained employed through June 30, 3009. 
   (b)      
Subject to the approval of the shareholders of the Company, the Company shall grant Executive a restricted stock award under the 2007 Plan, or subject to substantially the same terms as provided in the 2007 Plan, covering two hundred and twenty-five
thousand (225,000) shares of restricted stock of the Company (the “Restricted Stock”). Such restricted stock shall be granted on or before October 30, 2008. 
 (i)      Subject to adjustment pursuant to Section 11.3 of the 2007 Plan, one hundred and twelve
thousand five hundred (112,500) of the shares of Restricted Stock shall vest in two equal installments on June 30, 2009 and June 30, 2010, subject to Executive’s continued employment with the Company through the vesting dates
(except as otherwise provided in Section 5.10) and the terms and conditions of the 2007 Plan and the applicable award agreement. For purposes of establishing continued employment for the vesting of the second installment, it shall be sufficient
that Executive vested in the first installment, 

  

 3 

 
remained employed as Chief Executive Officer for the first three (3) months of the vesting period of the second installment, and continued in the role
of Chief Executive Officer or Chairman of the Board of Directors through the vesting date of the second installment. In the event Executive’s employment is terminated by the Company on or after February 28, 2009 without Cause pursuant to
Section 5.5 of this Agreement, but prior to June 30, 2009, Executive shall be immediately vested in the installment of Restricted Stock that would become vested and exercisable had he remained employed through June 30, 3009.

 (ii)      Subject to adjustment pursuant to Section 11.3 of the 2007 Plan, one hundred
and twelve thousand five hundred (112,500) of the shares of Restricted Stock shall vest: (A) on June 30, 2011, provided Executive is continuously employed as Chief Executive Officer through that date; or (B) on the first day
during the Employment Period following a period of twenty (20) consecutive trading days during which the VWAP of the Company’s common stock on each day is equal to or greater than $15.00 (U.S.) per share (except as otherwise provided in
Section 5.10) and shall otherwise be subject to the terms and conditions of the 2007 Plan and the applicable award agreement. The “VWAP” per share of the Company’s common stock on a trading day is the volume-weighted average
price per share of the Company’s common stock on the NASDAQ Global Market from 9:30 a.m. to 4:00 p.m., New York City time, on that trading day, as displayed by Bloomberg; or if the Company’s Common Stock is not then listed on the NASDAQ
Global Market, the volume weighted average price per CDI of the Company’s CDIs on the Australia Securities Market from 9:30 a.m. to 4:00 p.m. Australia time on that trading day, as displayed by Bloomberg (which amount shall be converted to a
per share amount in U.S. dollars by being multiplied by 20 and then by the applicable Australian dollar to U.S. dollar exchange rate as reported by the Wall Street Journal on such date); or if the Company’s common stock is not listed on the
NASDAQ Global Market and the Company’s CDIs are not listed on the ASX, the volume weighted average price of the Company’s common stock on the principal exchange or over-the-counter market on which its common stock is then listed or traded.
If such price is not available, the VWAP means the market value per share of the Company’s common stock on such day as determined by a nationally recognized investment banking firm retained by the Company for this purpose. 
 3.4      Benefits. During the Employment Period, Executive shall be entitled to participate in all pension,
401(k) and other employee benefit plans, including without limitation, medical, dental, vision, disability and life insurance plans, in accordance with the terms of such plans or policies as they may be in effect from time to time, on the same basis
as other executive-level employees of the Company. 
 3.4      Vacation. Executive shall be
entitled to twenty (20) days of paid vacation annually during the Employment Period. Executive’s vacation pay shall not be subject to the Company’s policies applicable to non-executive employees concerning accrual, use and scheduling
of vacation, as such policies may be in effect from time to time. Executive’s vacation pay shall vest in equal increments each pay period during each year, and Executive shall cease 

  

 4 

 
accruing additional vacation pay during any period in which his balance of accrued, unused vacation pay is thirty (30) days. Executive must make
reasonable efforts to be accessible to the Company during periods of vacation. 
 3.5      Business
Expenses. Executive shall be entitled to reimbursement of reasonable business expenses actually incurred by Executive in accordance with Company policies, as they may be in effect from time to time. With respect to airline tickets, the
Company shall reimburse executive for economy class airfare for domestic trips less than two (2) hours in scheduled duration, and for business class airfare (or first class airfare if business class is not available) for domestic trips of two
(2) hours or greater in scheduled duration and all international trips. All expense reimbursements shall be made not later than thirty (30) days after submission of a request for reimbursement by Executive with appropriate supporting
evidence of the expense. 
 3.6      Tax Preparation Expenses. Executive shall be entitled to
reimbursement of up to $5,000 each calendar year (beginning in calendar year 2009), provided that Executive provides a written request for reimbursement and appropriate supporting evidence of the expense no later than sixty (60) days following
the date on which the expense was incurred. The tax preparation expense reimbursement shall be made not later than thirty (30) days after submission of a request for reimbursement by Executive with appropriate supporting evidence of the
expense. 
 3.7      Legal Expenses. Executive shall be entitled to reimbursement of up to $5,000
in 2008 for legal fees and expenses incurred by Executive in connection with the preparation of this Agreement, provided that Executive provides a written request for reimbursement and appropriate supporting evidence of the expense no later than
sixty (60) days following the date on which the expense was incurred. The legal expense reimbursement shall be made not later than thirty (30) days after submission of a request for reimbursement by Executive with appropriate supporting
evidence of the expense, and in no event later than March 15, 2009. 
  

	4.	RESTRICTIVE COVENANTS 

 4.1      Exclusive Service. During the Employment Period, Executive shall devote substantially all of Executive’s business time, attention and energies to the business of the Company, except
as otherwise permitted in accordance with Section 2.3 or this Section 4.1. During the Employment Period, Executive shall not directly or indirectly provide services to or through any person or entity, except the Company, unless otherwise
authorized by the Board in writing. However, Executive may continue to serve during the Employment Period as a consultant and/or non-employee member of the board of directors of the companies for which Executive serves on the effective date of this
Agreement, which companies and the scope of such outside activities are listed on Exhibit B hereto, and may join the board of directors of other companies in the future with the Board’s prior written consent. Executive shall have the right to
perform such incidental services as are necessary in connection with (i) Executive’s private investments, but only if Executive is not obligated or required to (and shall not in fact) devote any significant managerial efforts, and
(ii) Executive’s charitable or community activities, or participation in trade or professional organizations, but only if such incidental services do not materially interfere with the performance of Executive’s services, or violate
Section 4.4. 
  

 5 

 4.2      Confidential Information. During the
Employment Period, Executive will have access to and become acquainted with various information relating to the Company’s business operations, including customer and supply lists, customer files, marketing data, business plans, strategies,
employee lists, contracts, financial records and accounts, products in development, product plans, projections and budgets, and similar information. Executive agrees that to the extent such information is not generally known to or available to the
public and/or the industry, and gives the Company an advantage over competitors who do not know of or use such information, such information and documents constitute “Confidential Information” of the Company. Confidential
Information shall not include information which is generally known to the public or in the industry or which becomes known other than through a breach of this Agreement by the Executive. Executive further agrees that any documents relating to the
business of the Company, whether they are prepared by Executive or come into Executive’s possession in any other way, are owned by the Company, shall remain the exclusive property of the Company, and must be returned to the Company upon
termination of employment. Executive shall not use any Confidential Information of the Company, directly or indirectly, for Executive’s own benefit, or the benefit of any person or entity other than the Company, nor shall Executive disclose
Confidential Information to any person or entity other than the Company and its employees or other persons authorized by the Company to receive the information, either during the Employment Period or at any time thereafter, except as may be
appropriate for Executive to perform Executive’s duties as an employee, officer and/or director, directly or indirectly, of the Company. In the event Executive violates this Section 4.2, and such violation is not remedied (if remediable)
within thirty (30) days after delivery to Executive by the Company of a written notice specifically identifying the violation that the Company believes has occurred, then during any period in which Executive is receiving payments or benefits
under this Agreement, in addition to any other remedies the Company may have, the Company may terminate Executive’s compensation and benefits. 
 4.3      Non-Solicitation 
   (a)      
Non-Solicitation of Employees. Executive agrees that during the Executive’s Employment Period and for a period of eighteen (18) months thereafter, Executive shall not, directly or indirectly, through any other individual or entity,
solicit any employee of the Company, to cease his or her employment with the Company, and Executive will not approach any such employee for any such purpose or knowingly authorize the taking of any such action by any other individual or entity.

   (b)       Non Solicitation of Customers. Executive agrees that during the Employment
Period and thereafter, Executive shall not, without the prior written approval of the Company, directly or indirectly, through or on behalf or any other individual or entity, use any information that constitutes a “trade secret” within the
meaning of the Uniform Trade Secrets Act (“UTSA”) to solicit, entice or induce any business from any of the Company’s customers (including actively sought prospective customers) or suppliers/vendors. 
 4.4      Non-Competition. Executive acknowledges that the Company does business throughout the world. During
the Employment Period, Executive shall not, directly or indirectly, serve as an employee, consultant, officer, director, lender, investor, shareholder, partner, manager or member of any person or entity, or own or act as a sole proprietor of a
business that 

  

 6 

 
engages in the Business, as defined below, or similar business (a “Competitor”), during that period in any County of the State of
California, any states in the United States of America, any country in Europe, Asia, Australia or South America, other than the Company or its affiliates, or as approved in advance in writing by the CEO of the Company or the Board. For purposes of
this Section 4.4, the “Business” shall refer to the pharmaceutical industry, and such other businesses as the Company may expand into, or have plans to expand into, while Executive is employed by the Company, its parents,
subsidiaries or affiliates. Notwithstanding the foregoing, such restriction shall not apply to any activity identified on Exhibit B or any passive ownership by Executive of securities representing either: 
   (a)       less than one percent (1%) of the securities of a publicly traded entity at the time of
Executive’s investment; or 
   (b)       less than $500,000 and less than five percent
(5%) of the securities of any entity that is not a publicly traded. 
 4.5      Non-Disparagement. The Executive agrees not to disparage the Company, any of its products or practices, or any of its directors, officers, agents, representatives, stockholders or
affiliates, either orally or in writing, at any time. This provision shall not prohibit Executive from making any statement or taking any action required by applicable law, nor shall it prohibit Executive from making critical comments concerning the
Company, any of its products or practices, or any of its directors, officers, agents, representatives, stockholders or affiliates to the Company, any of its products or practices, or any of its directors, officers, agents, representatives,
stockholders or affiliates in the course of performing his duties as Chief Executive Officer and Chairman of the Board of Directors consistent with his fiduciary obligations. 
 4.6      Injunctive Relief. The Executive recognizes and acknowledges that a breach of the covenants
contained in Section 4 will cause irreparable damage to Company and its goodwill, the exact amount of which will be difficult or impossible to ascertain, and that the remedies at law for any such breach will be inadequate. Accordingly, the
Executive agrees that in the event of a breach of any of the covenants contained in Section 4, in addition to any other remedy which may be available at law or in equity, the Company will be entitled to specific performance and injunctive
relief. 
  

	5.	TERMINATION OF EMPLOYMENT 

 5.1      In General. The Executive’s employment hereunder may be terminated by the Company or the Executive, as applicable, without any breach of this Agreement only as described below in
Sections 5.2-5.7. 
 5.2      Death. Executive’s employment shall terminate on the date of
Executive’s death. 
 5.3      Disability. Unless prohibited by law, the Company may
terminate Executive’s employment if Executive becomes Disabled, as defined below, at any time upon a vote in favor or termination because Executive is Disabled by a majority of the members of the Board of Directors and written notice to
Executive specifying a date of termination not less than thirty (30) days nor more than forty-five (45) days following the date of the written notice. For 

  

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purposes of this Section 5.3, the term “Disabled” shall mean a physical or mental incapacity as a result of which Executive becomes
unable to continue to perform the essential functions of Executive’s job with or without accommodation hereunder for six (6) consecutive calendar months or for shorter periods aggregating one hundred twenty-five (125) business days in
any twelve (12) month period. 
 5.4      By the Company For Cause. The Company may
terminate Executive’s employment for Cause, as defined below in this Section 5.4, at any time upon a vote in favor or termination for Cause by a majority of the members of the Board of Directors and written notice to Executive specifying a
date of termination not less than thirty (30) days nor more than forty-five (45) days following the date of the written notice. Such notice shall specify the subpart(s) of this Section 5 and the facts relied upon by the Board to
determine that Cause exists. The Company may relieve Executive of some or all of Executive’s duties between the date notice is given and the date of termination, and such action shall not constitute Good Reason for Executive to terminate
Executive’s employment under Section 5.6. 
 For purposes of this Agreement, “Cause” shall mean the Board’s
reasonable determination that one or more of the following conditions exist: 
   (a)      
Executive has been convicted of or pled guilty or no contest to any felony; 
   (b)       Executive
has committed one or more acts of theft, embezzlement or misappropriation against the Company; or 
   (c)       Executive has materially breached Executive’s obligations under this Agreement, including without limitation, Section 4, which breach was not remedied, if remediable, within
thirty (30) days after delivery to Executive by the Company of a written notice specifically identifying the breach that the Company believes has occurred. 
 5.5      By the Company Without Cause. The Company may terminate Executive’s employment without Cause, as defined in Section 5.4, at any time upon a vote in favor
of termination without Cause by a majority of the members of the Board of Directors and written notice to Executive specifying a date of termination not less than thirty (30) days nor more than forty-five (45) days following the date of
the written notice. The Company may relieve Executive of some or all of Executive’s duties between the date notice is given and the date of termination, and such action shall not constitute Good Reason for Executive to terminate
Executive’s employment under Section 5.6. 
 5.6      By Executive For Good Reason.
Executive may terminate Executive’s employment for Good Reason, as defined below in this Section 5.6, at any time upon written notice to the Company specifying a date of termination not less than thirty (30) days nor more than
forty-five (45) days following the date of the written notice. Such notice shall specify the subpart(s) of this Section 5.6 and the facts relied upon by Executive to determine that Good Reason exists. If the Company cures the breach or
violation cited in the notice prior to the date of termination specified in the notice, the Executive may not terminate Executive’s employment for Good Reason. Between the date notice is given and the date of termination, Executive shall not be
employed by any other person or entity, and shall continue to perform Executive’s duties 

  

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for the Company to the extent Executive is requested by the Company to do so. The Company may relieve Executive of some or all of Executive’s duties
between the date notice is given and the date of termination, and such action shall not constitute Good Reason for Executive to terminate Executive’s employment under Section 5.6. 
 For purposes of this Agreement, “Good Reason” shall mean: 
   (a)       the Company’s material breach of the compensation and benefit obligations set forth in
Section 3 hereunder; 
   (b)       a material, substantial, and permanent reduction in
Executive’s duties, responsibilities or authority at the Company without Executive’s prior written consent; 
   (c)       a material breach of this Agreement by removing Executive from the position of Chief Executive Officer without Executive’s prior written consent; or 
   (d)       a material change in the geographic location at which Executive must perform services. 

Executive shall be deemed to have waived Executive’s right to terminate for Good Reason with respect to any such breach or action if Executive
does not notify the Company in writing of such breach or action within thirty (30) days of the event that gives rise to such breach or action. 
 5.7      By Executive Without Good Reason. Executive may terminate Executive’s employment without Good Reason, as defined in Section 5.6 upon written notice to the Company specifying a
date of termination not less than thirty (30) days nor more than forty-five (45) days following the date of the written notice. Between the date notice is given and the date of termination, Executive shall not be employed by any other
person or entity, and shall continue to perform Executive’s duties for the Company to the extent Executive is requested by the Company to do so. 
 5.8      Return of Property. Upon termination of Executive’s employment, Executive shall return to the Company any and all Company property, materials, or equipment in
Executive’s possession. 
 5.9      Severance  
   (a)       Termination by Company Without Cause on or before the Second Anniversary, for Cause or by
Executive without Good Reason. In the event that Executive’s employment terminates pursuant to Section 5.5 (Without Cause) on or before the second anniversary of the Effective Date, or terminates pursuant to Section 5.4 (For
Cause) or Section 5.7 (Without Good Reason) at any time: (i) Executive, if requested and able to do so, shall continue to render services to the Company pursuant to this Agreement until the Effective Date of Termination, as defined in this
Section 5.9; (ii) Executive shall continue to receive Executive’s Base Compensation and benefits as otherwise provided under this Agreement through the Effective Date of Termination; and (iii) after the Effective Date of
Termination, Executive shall have no further right to receive compensation, benefits or other consideration 

  

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from the Company (except if, as provided in Sections 3.2 and 3.3, Executives’ continued service as Chairman of the Board satisfying the continued
employment condition to payment of the Performance Bonus and vesting of the Stock Option and Restricted Stock), and Executive shall not be entitled to any severance payments or benefits, except as set forth in the final two paragraphs of this
Section 5.9 or as required by applicable law or the Company’s pension or welfare benefit plans. The “Effective Date of Termination” shall be the date specified in the written notice of termination for a termination under
Sections 5.4, 5.5, 5.6, or 5.7. 
   (b)       Termination by Company without Cause After
the Second Anniversary or by Executive for Good Reason. In the event that Executive is terminated pursuant to Section 5.5 (Without Cause) after the second anniversary of the Effective Date, or pursuant to Section 5.6 (For Good Reason)
at any time: (i) Executive, if requested and able to do so, shall continue to render services to the Company pursuant to this Agreement until the Effective Date of Termination; (ii) Executive shall continue to receive Executive’s Base
Compensation and benefits as provided in this Agreement through the Effective Date of Termination; (iii) if, following the Effective Date of Termination, Executive continues to serve as Chairman of the Board and satisfies all conditions to
payment of the Performance Bonus and vesting of the Stock Option and Restricted Stock, Executive shall receive any Performance Bonus earned as provided in Section 3.2 and shall vest in any portion of the Stock Option or Restricted Stock as
provided in Section 3.3; and (iv) Executive shall be entitled to severance pay and benefits as set forth in subparagraphs (i) through (ii) (the “Severance Benefits”) below provided that not later than sixty
(60) days following Executive’s “separation from service”, within the meaning of Section 409A(a)(2)(A)(i) of the Code and any Treasury Regulations or other guidance issued thereunder (“Separation from
Service”), Executive (or Executive’s trust or estate, as applicable) executes and delivers, and any revocation period required by law has run and Executive (or Executive’s trust or estate, as applicable) has not revoked, a general
release of claims against the Company, its Board, its affiliates, and their employees and agents in the form attached hereto as Exhibit A, or, in the event of a change in the law that would limit the effect of the general release of claims attached
as Exhibit A, a general release of claims that would have the same scope and effect as the general release of claims attached hereto as Exhibit A had as of the Date of this Agreement which shall be provided to Executive not later than one
(1) week following Executive’s Separation from Service (the “General Release”), and Executive is not in material breach of any of the material provisions of this Agreement. 
 (i)       Severance Amount. The Company shall pay Executive his monthly Base Compensation in effect
immediately preceding the Effective Date of Termination for a period of six (6) months (the “Severance Payments”). The Severance Payments shall be made in five (5) installments beginning on the last day of the second full
month following Executive’s Separation from Service, with the first payment equal to two (2) times his monthly Base Compensation, and the remaining four installments each equal to one (1) times his monthly Base Compensation and made
on the last day of the third through sixth months following Executive’s Separation from Service. 
 (ii)      Benefits. Provided that Executive timely elects and remains eligible for COBRA healthcare continuation benefits, the Company shall pay for the applicable monthly COBRA premium for Executive and
Executive’s covered 

  

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dependents (the “COBRA Amount”) for a period of six (6) months immediately following the Effective Date of Termination (the
“COBRA Benefits”). 
 5.10      CHANGE IN CONTROL ACCELERATED VESTING. 
 Notwithstanding anything to the contrary in any plan document or award agreement, all unvested portions of the Stock Option and the Restricted Stock shall
immediately vest and become exercisable (if applicable) upon the occurrence of a Change in Control during the Employment Period. 
 For
purposes of this Agreement, “Change in Control” shall mean each occurrence of any of the following: 
 (a)       the acquisition, directly or indirectly, by any “person” or “group” (as those terms are defined in Sections 3(a)(9), 13(d), and 14(d) of the Securities Exchange Act of 1934, as
amended, and the rules thereunder (the “Exchange Act”)) of “beneficial ownership” (as determined pursuant to Rule 13d-3 under the Exchange Act) of securities entitled to vote generally in the election of directors
(“voting securities”) of the Company that represent 50% or more of the combined voting power of the Company’s then outstanding voting securities, other than 
   (i)        an acquisition by a trustee or other fiduciary holding securities under
any employee benefit plan (or related trust) sponsored or maintained by the Company or any person controlled by the Company or by any employee benefit plan (or related trust) sponsored or maintained by the Company or any person controlled by the
Company, or 
   (ii)       an acquisition of voting securities by the Company
or a corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of the stock of the Company, or 
   (iii)      an acquisition of voting securities pursuant to a transaction described in clause
(c) below that would not be a Change in Control under clause (c); 
 Notwithstanding the foregoing, an acquisition of the Company’s
securities by the Company which, either alone or in combination only with the other event, causes the Company’s voting securities beneficially owned by a person or group to represent 50% or more of the combined voting power of the
Company’s then outstanding voting securities shall not constitute an “acquisition” by any person or group for purposes of this clause (a); provided, however, that if a person or group shall become the beneficial owner of 50% or more
of the combined voting power of the Company’s then outstanding voting securities by reason of share acquisitions by the Company as described above and shall, after such share acquisitions by the Company, become the beneficial owner of any
additional voting securities of the Company, then such acquisition shall constitute a Change in Control; 
 (b)       individuals who, as of the date hereof, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board; provided, however, that any
individual becoming a director subsequent to the date hereof whose election, or nomination for election by the Company’s stockholders, was approved by a vote of at least a 

  

 11 

 
majority of the directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but
excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of
proxies or consents by or on behalf of a person other than the Board; 
 (c)       the consummation by the
Company (whether directly involving the Company or indirectly involving the Company through one or more intermediaries) of (x) a merger, consolidation, reorganization, or business combination or (y) a sale or other disposition of all or
substantially all of the Company’s assets or (z) the acquisition of assets or stock of another entity, in each case, other than a transaction 
   (i)        which results in the Company’s voting securities outstanding immediately before the transaction continuing to represent (either by remaining
outstanding or by being converted into voting securities of the Company or the person that, as a result of the transaction, controls, directly or indirectly, the Company or owns, directly or indirectly, all or substantially all of the Company’s
assets or otherwise succeeds to the business of the Company (the Company or such person, the “Successor Entity”)) directly or indirectly, at least 50% of the combined voting power of the Successor Entity’s outstanding voting
securities immediately after the transaction, and 
   (ii)        after which
more than 50% of the members of the board of directors of the Successor Entity were members of the Incumbent Board at the time of the Board’s approval of the agreement providing for the transaction or other action of the Board approving the
transaction, and 
   (iii)       after which no person or group beneficially owns
voting securities representing 50% or more of the combined voting power of the Successor Entity; provided, however, that no person or group shall be treated for purposes of this clause (C) as beneficially owning 50% or more of combined
voting power of the Successor Entity solely as a result of the voting power held in the Company prior to the consummation of the transaction; or 
 (d)       stockholder approval of a liquidation or dissolution of the Company. 
 For purposes of
clause (a) above, the calculation of voting power shall be made as if the date of the acquisition were a record date for a vote of the Company’s stockholders, and for purposes of clause (c) above, the calculation of voting power shall
be made as if the date of the consummation of the transaction were a record date for a vote of the Company’s stockholders. 
 5.11      Certain Additional Payments. If any payment or benefit received or to be received by Executive in connection with a change in control or termination of Executive’s employment
(whether payable pursuant to the terms of this Agreement, a stock option plan or any other plan or arrangement with the Company) (the “Total Payments”) will be subject to the excise tax imposed by Section 4999 of the Code, as
amended, the Company will pay to Executive, within thirty (30) days of any payments giving rise to excise tax, an additional 

  

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amount (the “gross-up payment”) such that the net amount retained by Executive, after deduction of any excise tax on the Total Payments and
any federal, state and local income and employment tax and excise tax on the gross-up payment provided for by this Section 5.11, will equal the Total Payments. For purposes of determining the amount of the gross-up payment, Executive will be
deemed to pay federal, state and local income taxes at Executive’s actual marginal rate of federal, state and local income taxation in the calendar year that the payment or benefit to which the excise tax relates is to be made or provided, net
of the maximum reduction in federal income taxes that could be obtained at that time by Executive by deducting such state and local taxes. For purposes of determining whether any of the Total Payments would not be deductible by the Company and would
be subject to the excise tax, and the amount of such excise tax, (1) Total Payments will be treated as “parachute payments” within the meaning of Section 280G(b)(2) of the Code, and all parachute payments in excess of the base
amount within the meaning of Section 280G(b)(3) will be treated as subject to the excise tax unless, in the opinion of tax counsel selected by the Company’s independent auditors prior to the change in control and acceptable to Executive,
such Total Payments (in whole or in part) are not parachute payments, or such parachute payments in excess of the base amount (in whole or in part) are otherwise not subject to the excise tax, and (2) the value of any non-cash benefits or any
deferred payment will be determined by the Company’s independent auditors in accordance with Sections 280G(d)(3) and (4) of the Code. If the excise tax is subsequently determined to be less than the amount originally taken into
account hereunder, Executive will repay to the Company, when such reduction in excise tax is finally determined, the portion of the gross-up payment attributable to such reduction. If the excise tax is determined to exceed the amount originally
taken into account hereunder (including by reason of any payment, the existence or amount of which cannot be determined at the time of the gross-up payment), the Company will make an additional gross-up payment in respect of such excess (plus any
interest payable with respect to such excess) when such excess if finally determined. The gross-up payment and any payment of any income or other taxes to be paid by the Company under this Section 5.11 shall be made as set forth above, but in
no event later than the end of Executive’s taxable year next following Executive’s taxable year in which Executive remits the related taxes. 
 5.12      Delayed Distribution under Section 409A of the Code. If Executive is a “specified employee,” as defined in Code Section 409A(a)(2)(B)(i), on
the date of Executive’s Separation from Service, the payments or benefits under this Agreement subject to Code Section 409A shall be delayed to the extent necessary to avoid a prohibited distribution under Section 409A(a)(2)(B)(i) of
the Code, and such payments or benefits shall be paid or distributed to Executive (or Executive’s estate) during the thirty (30) day period commencing on the earlier of (a) the expiration of the six (6) month period measured from
the date of Executive’s Separation from Service, or (b) the date of Executive’s death. Upon the expiration of the applicable six (6) month period under Section 409A(a)(2)(B)(i) of the Code, all payments deferred pursuant to
this Section 5.11 shall be paid in a lump sum payment to Executive. Any remaining payments due under the Agreement shall be paid as otherwise provided herein. 
 5.13      No Duty to Mitigate. Executive shall be entitled to the full severance benefits provided under this Section 5, without regard to Executive’s efforts or
lack of efforts to obtain alternative employment, and the severance benefits provided to Executive shall not be reduced by any amounts received by Executive from any other source. 
  

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	6.	ARBITRATION AGREEMENT 

 6.1      Claims Subject to Arbitration. Any controversy, dispute or claim between Executive and the Company, or its parents, subsidiaries, affiliates and any of their officers, directors, agents
or other employees, shall be resolved by binding arbitration, at the request of either party. 
 The arbitrability of any controversy,
dispute or claim under this Agreement shall be determined by application of the substantive provisions of the Federal Arbitration Act (9 U.S.C. sections 1 and 2) and by application of the procedural provisions of California law, except as
provided herein. Arbitration shall be the exclusive method for resolving any dispute and all remedies available from a court of competent jurisdiction shall be available; provided, however, that either party may request provisional relief from a
court of competent jurisdiction, if such relief is not available in a timely fashion through arbitration. 
 The claims which are to be
arbitrated include, but are not limited to any claim arising out of or relating to this Agreement or the employment relationship between Executive and the Company, claims for wages and other compensation, claims for breach of contract (express or
implied), claims for violation of public policy, wrongful termination, tort claims, claims for unlawful discrimination and/or harassment (including, but not limited to, race, religious creed, color, national origin, ancestry, physical disability,
mental disability, gender identity or expression, medical condition, marital status, age, pregnancy, sex or sexual orientation) to the extent allowed by law, and claims for violation of any federal, state, or other government law, statute,
regulation, or ordinance, except for claims for workers’ compensation and unemployment insurance benefits. This Agreement shall not be interpreted to provide for arbitration of any dispute that does not constitute a claim recognized under
applicable law. 
 6.2      Selection of Arbitrator. Executive and the Company will select a
single neutral arbitrator by mutual agreement. If Executive and the Company are unable to agree on a neutral arbitrator within thirty (30) days of a demand for arbitration, either party may elect to obtain a list of arbitrators from the
Judicial Arbitration and Mediation Service (“JAMS”), and the arbitrator shall be selected by alternate striking of names from the list until a single arbitrator remains. The party initiating the arbitration shall be the first to
strike a name. 
 6.3      Demand for Arbitration. The demand for arbitration must be in writing
and must be made by the aggrieved party within the statute of limitations period provided under applicable State and/or Federal law for the particular claim(s). Failure to make a written demand within the applicable statutory period constitutes a
waiver of the right to assert that claim in any forum. 
 6.4      Location of Arbitration.
Arbitration proceedings will be held in Alameda County, California. 
 6.5      Choice of
Law. The arbitrator shall apply California and/or Federal substantive law to determine issues of liability and damages regarding all claims to be arbitrated, and shall apply the Federal Rules of Evidence to the proceeding. 
  

 14 

 6.6      Discovery. The parties shall be entitled to conduct
reasonable discovery and the arbitrator shall have the authority to determine what constitutes reasonable discovery. The arbitrator shall hear motions for summary judgment/adjudication as provided in the Federal Rules of Civil Procedure. 

6.7      Written Opinion and Award. Within thirty (30) days following the hearing and the submission
of the matter to the arbitrator, the arbitrator shall issue a written opinion and award which shall be signed and dated. The arbitrator’s award shall decide all issues submitted by the parties, and the arbitrator may not decide any issue not
submitted. The opinion and award shall include factual findings and the reasons upon which the decision is based. The arbitrator shall be permitted to award only those remedies in law or equity which are requested by the parties and allowed by law.

 6.8      Costs of Arbitration. The cost of the arbitrator and other incidental costs of
arbitration that would not be incurred in a court proceeding shall be borne by the Company. The parties shall each bear their own costs and attorneys’ fees in any arbitration proceeding, provided, however, that the arbitrator shall have the
authority to require either party to pay the costs and attorneys’ fees of the other party to the extent permitted under applicable federal or state law as a part of any remedy that may be ordered. 
 6.9      Waiver of Right to Jury. Both the Company and Executive understands that by using arbitration to
resolve disputes they are giving up any right that they may have to a judge or jury trial with regard to all issues concerning employment or otherwise covered by this Section 6. 
  

	7.	GENERAL PROVISIONS 

 7.1      Withholding. The Company shall deduct and withhold from any payments to Executive, including but not limited to payments of Executive’s Base Compensation and Bonus Compensation, any
and all applicable Federal, State and local income and employment withholding taxes and any other amounts required to be deducted or withheld by the Company under applicable statutes, regulations, ordinances or orders. The Company shall also deduct
such amounts as may be authorized by Executive from time to time. 
 7.2      Assignment and
Successors. The Company may assign its rights and obligations under this Agreement to any entity which is a successor to all or substantially all the assets of the Company, by merger or otherwise, and may assign or encumber this Agreement
and its rights hereunder as security for indebtedness of the Company and its affiliates. The Executive may not assign his rights or obligations under this Agreement to any individual or entity. This Agreement shall be binding upon and inure to the
benefit of the Company, the Executive and their respective successors, assigns, personnel and legal representatives, executors, administrators, heirs, distributees, devisees, and legatees, as applicable. 
 7.3      Notices. All notices, requests, demands and other communications that are required or may be given
under this Agreement shall be in writing and shall be deemed to have been duly given when received if: (i) personally delivered, when transmitted if transmitted by telecopy, electronic or digital transmission method with electronic confirmation
of receipt; (ii) the day after it is sent, if sent for next-day delivery to a domestic address by recognized 

  

 15 

 
overnight delivery service (e.g., FedEx); and (iii) upon receipt, if sent by certified or registered mail, return receipt requested. In each case
notice shall be sent to: 
  

					
	If to the Company:	 		 	
		 	 Peplin, Inc.
 6475 Christie Avenue

Suite 300
 Emeryville, CA 94608
 Attention: Chairman of the Compensation
 Committee of the Board of Directors

 Facsimile: 510-653-9704
	 	
			
	with a copy to:	 	 Latham & Watkins LLP
 650 Town Center
Drive
 Suite 2000
 Costa Mesa, CA 92626
 Attention: B. Shayne Kennedy
 Facsimile: 714-755-8290
	 	
			
	If to Executive:	 	 Thomas Wiggans
 1 Patricia Drive,
 Atherton, Ca 94027
 Facsimile: 650-368-3075
	 	

  
 Any party may change its
address for the purpose of this Section 7.3 by giving the other party written notice of its new address in the manner set forth above. 
 7.4      Entire Agreement. This Agreement constitutes the entire agreement of the parties with respect to the subject matter hereof, and supersedes all prior representations, warranties,
agreements and understandings, both written and oral, made by the Company or any of its affiliates, representatives or agents with respect to the terms and conditions of Executive’s employment; provided, however, that this Agreement shall:
(a) supplement, not supersede, any prior agreements concerning the Confidential Information or other intellectual property of the Company, and any conflicts or inconsistencies between such agreements shall be resolved so that the provision
providing greater rights to the Company shall prevail; and (b) not supersede, limit or amend Executive’s rights under any equity-based compensation arrangement, including without limitation any options or restricted stock granted to
Executive, except as expressly set forth in this Agreement. 
 7.5      Amendments; Waivers. This
Agreement may be amended or modified, and any of the terms and covenants may be waived, only by a written instrument executed by the parties hereto, or, in the case of a waiver, by the party waiving compliance. Any waiver by any party in any one or
more instances of any term or covenant contained in this Agreement shall neither be deemed to be nor construed as a further or continuing waiver of any such term or covenant of this Agreement. 
  

 16 

 7.6      Provisions Severable. In case any one or more
provisions of this Agreement shall be invalid, illegal or unenforceable, in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not, in any way, be affected or impaired thereby. If any provision
hereof is determined by any court of competent jurisdiction to be invalid or unenforceable by reason of such provision extending the covenants and agreements contained herein for too great a period of time or over too great a geographical area, or
being too extensive in any other respect, such provision shall be interpreted to extend only over the maximum period of time and geographical area, and to the maximum extent in all other respects, as to which it is valid and enforceable, all as
determined by such court in such action. 
 7.7      Attorneys’ Fees. If any legal action,
arbitration or other proceeding, is brought for the enforcement of this Agreement, or because of an alleged dispute, breach or default in connection with any of the provisions of this Agreement, each of the parties hereto shall be responsible for
payment of their own attorneys’ fees and other costs incurred by them in that action or proceeding, without regard to whomever is the prevailing party in such action or proceeding with respect to such claims, except as otherwise provided in
Section 6. 
 7.8      Governing Law. This Agreement shall be construed, performed and
enforced in accordance with, and governed by the laws of the State of California without giving effect to the principles of conflict of laws thereof. 
 7.9      Cooperation. During Executive’s employment with the Company and thereafter, Executive agrees to cooperate with the Company and its agents, accountants and
attorneys concerning any matter with which Executive was involved during Executive’s employment. Such cooperation shall include, but not be limited to, providing information, meeting with and reviewing documents provided by the Company and its
agents, accountants and attorneys during normal business hours or other mutually agreeable hours upon reasonable notice and making himself available for depositions and hearings, if requested and upon reasonable notice. If Executive’s
cooperation is required after the termination of Executive’s employment, the Company shall reimburse Executive for any reasonable out of pocket expenses incurred and any wages lost by Executive in the course of performing his obligations
hereunder. 
 7.10      Headings. The headings contained in this Agreement are provided solely
for the Parties’ convenience and shall not be deemed to alter the meaning of the text of the Agreement. 
 7.11      Construction. This Agreement shall be deemed drafted equally by both the parties. Its language shall be construed as a whole and according to its fair meaning. Any presumption or
principle that the language is to be construed against any party shall not apply. The headings in this Agreement are only for convenience and are not intended to affect construction or interpretation. Any references to paragraphs, subparagraphs,
sections or subsections are to those parts of this Agreement, unless the context clearly indicates to the contrary. Also, unless the context clearly indicates to the contrary, (a) the plural includes the singular and the singular includes the
plural; (b) “or” is used both conjunctively and disjunctively; (c) “any,” “all,” “each,” or “every” means “any and all,” and “each and every”;
(d) “includes” and “including” are each “without limitation”; (e) “herein,” “hereof,” “hereunder” and other similar compounds of the word “here” refer to the entire
Agreement and not to any particular paragraph, subparagraph, section or subsection; and (f) all pronouns and any variations 

  

 17 

 
thereof shall be deemed to refer to the masculine, feminine, neuter, singular or plural as the identity of the entities or persons referred to may require.

 7.12      Survival. The expiration or termination of the Employment Period shall not impair:
(i) the rights or obligations of any party hereto under Sections 4, 6 and 7, or (ii) the Company’s obligation to make and Executive’s right to receive any payment pursuant to Section 5.8 through 5.12 if such right accrued
prior to or as a result of the expiration or termination. 
 7.13      Counterparts. This
Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which shall constitute the same instrument. 
  
    IN WITNESS WHEREOF, the parties have executed this Agreement on the date and year first above written. 
  

			
	COMPANY
		
	By:	 	 /s/ Jim Scopa

		 	Jim Scopa
	
	 Member of the Board of Directors and the Compensation
 Committee of the Board of Directors

	
	EXECUTIVE
		
	By:	 	 /s/ Thomas Wiggnas

		 	Thomas Wiggans

  

 18 

 Exhibit A 
 GENERAL RELEASE AGREEMENT 
 This General Release of Claims (this “Release”) is made
by Thomas Wiggans (“Executive”) in favor of Peplin, Inc. (the “Company”) and the “Company Releasees” (as defined below), as of the date of Executive’s execution of this Release. 
  

	1.	RELEASE BY EXECUTIVE 

 1.1      General Release. In exchange for the Severance Benefits as defined in the Employment Agreement entered into by and between the Company and Executive, dated as of [DATE] to which
this Release is an exhibit (the “Employment Agreement”), Executive does hereby release and forever discharge the “Company Releasees” herein, consisting of the Company, its parent, subsidiary and affiliate
corporations, and each of their respective past and present parents, subsidiaries, affiliates, associates, owners, members, stockholders, predecessors, successors, assigns, employees, agents, directors, officers, partners, representatives, lawyers,
and all persons acting by, through, under, or in concert with them, or any of them, of and from any and all manner of claims or causes of action, in law or in equity, of any nature whatsoever, known or unknown, fixed or contingent (hereinafter
called “Claims”), that Executive now has or may hereafter have against the Company Releasees by reason of any and all acts, omissions, events or facts occurring or existing prior to Executive’s execution of this Release. The
Claims released hereunder include, without limitation, any alleged breach of any express or implied agreement (including without limitation the Employment Agreement); any alleged torts or other alleged legal restrictions relating to the
Executive’s service to the Company and the termination thereof; and any alleged violation of any federal, state or local statute or ordinance including, without limitation, Claims arising under: the Age Discrimination in Employment Act as
amended, 29 U.S.C. § 621 et seq.; Title VII of the Civil Rights Act of 1964, as amended by the Civil Rights Act of 1991, 42 U.S.C. § 2000 et seq.; Equal Pay Act, as amended, 29 U.S.C. § 206(d); the Civil Rights Act
of 1866, 42 U.S.C. § 1981; the Family and Medical Leave Act of 1993, 29 U.S.C. § 2601 et seq.; the Americans with Disabilities Act of 1990, 42 U.S.C. § 12101 et seq.; the False Claims Act , 31 U.S.C. § 3729 et
seq.; the Employee Retirement Income Security Act, as amended, 29 U.S.C. § 1001 et seq.; the Worker Adjustment and Retraining Notification Act, as amended, 29 U.S.C. § 2101 et seq. the Fair Labor Standards Act, 29
U.S.C. § 215 et seq., the Sarbanes-Oxley Act of 2002; the California Fair Employment and Housing Act, as amended, Cal. Lab. Code § 12940 et seq.; the California Equal Pay Law, as amended, Cal. Lab. Code §§
1197.5(a),1199.5; the Moore-Brown-Roberti Family Rights Act of 1991, as amended, Cal. Gov’t Code §§12945.2, 19702.3; California Labor Code §§ 1101, 1102, 69 Ops. Cal. Atty. Gen. 80 (1986); California Labor Code §§
1102.5(a),(b); the California WARN Act, Cal. Lab. Code § 1400 et seq.; the California False Claims Act, Cal. Gov’t Code § 12650 et seq.; the California Corporate Criminal Liability Act, Cal. Penal Code § 387; or
under the California Labor Code); and any federal, state or local laws of similar effect. This release shall not apply to the Company’s obligations to provide severance benefits under the Employment Agreement, to Executive’s rights to
indemnification under the Articles or Bylaws of the Company or applicable law, to claims for workers’ compensation benefits, or Executive’s vested rights under any stock 

 
option, restricted stock, retirement or welfare benefit plan, or any other rights that may not be waived by private agreement. 
 1.2      Rights Under the Older Worker’s Benefit Protection Act 
 Executive agrees and expressly acknowledges that this Release includes a waiver and release of all claims which Executive has or may have under the Older
Worker’s Benefit Protection Act and the ADEA. The following terms and conditions apply to and are part of the waiver and release of the Older Worker’s Benefit Protection Act claims and ADEA claims under this Release: 
   (a)       This paragraph, and this Release are written in a manner calculated to be understood by Executive.

   (b)       The waiver and release of claims under the ADEA contained in this Release does not
cover rights or claims that may arise after the date on which Executive signs this Release. 
   (c)       The Severance Benefits (as defined in the Employment Agreement) provide for consideration in exchange for this release in addition to anything of value to which Executive is already
entitled. 
   (d)       Executive has been advised to consult an attorney before signing this
Release and the Employment Agreement. 
   (e)       Executive has been granted not less than
twenty-one (21) days (or forty-five (45) days in the event of an exit incentive or other employment termination program) after Executive is presented with this Release and the Effective Date of Termination (as defined in the Employment
Agreement) to decide whether or not to sign this Release. If Executive executes this Release prior to the expiration of such period, Executive does so voluntarily and after having had the opportunity to consult with an attorney, and hereby waives
the remainder of the twenty-one (21) day period (or forty-five (45) day period, if applicable). 
   (f)       Executive has the right to revoke this Release within seven (7) days of signing this Release. In the event this Release is revoked, Executive understands that this Release will be
null and void, and Executive will not be entitled to any the Severance Benefits which are expressly conditioned upon the execution and non-revocation of this Release. 
   If Executive wishes to revoke this Release, Executive shall deliver written notice stating Executive’s intent to revoke this Release to the Chairman of the Board of Directors, at the offices of the
Company, on or before 5:00 p.m. on the seventh (7th) day after the date on which Executive signs this Release. 
 1.3      No Assignment. Executive represents and warrants to the Company Releasees that there has been no assignment
or other transfer of any interest in any Claim that the Executive may have against the Company Releasees, or any of them. Executive agrees to indemnify and hold harmless the Company Releasees from any liability, claims, demands, damages, costs,
expenses and attorneys’ fees incurred as a result of any person asserting such 

  

 A-2 

 
assignment or transfer of any right or claims under any such assignment or transfer from Executive. 
 1.4      No Actions. Executive agrees that if Executive hereafter commences, joins in, or in any manner seeks relief
through any suit arising out of, based upon, or relating to any of the Claims released hereunder or in any manner asserts against the Company Releasees any of the Claims released hereunder, then Executive will pay to the Company Releasees against
whom such claim(s) is asserted, in addition to any other damages caused thereby, all attorneys’ fees incurred by such Company Releasees in defending or otherwise responding to said suit or Claim. Provided, however, that Executive shall not be
obligated to pay the Company Releasees’ attorneys’ fees to the extent such fees are attributable to claims under the ADEA or a challenge to the validity of the release of claims under the ADEA. 
  

	2.	MISCELLANEOUS 

 2.1      No Admission. Executive understands and agrees that neither the payment of money nor the execution of this Release shall constitute or be construed as an admission of any liability
whatsoever by the Company Releasees. 
 2.2      Severability. The provisions of this Release are
severable, and if any part of this Release is found to be unenforceable, the other paragraphs (or portions thereof) shall remain fully valid and enforceable. 
 2.3      No Encouragement of Actions Against the Company. Executive agrees that except to the extent required by law, Executive will not assist any person in bringing or
pursuing legal action against the Company, its agents, successors, representatives, employees and related and/or affiliated companies, based on events occurring prior to Executive’s execution of this Release. Nothing contained in this Release
shall be interpreted to discourage or prohibit Executive with cooperating with any federal, state, local or foreign law enforcement authority in an civil or criminal investigation or prosecution by such authority. 
 2.4      Headings. The headings in this Release are provided solely for convenience, and are not intended to
be part of, nor to affect or alter the interpretation or meaning of, this Release. 
 2.5      Construction of Agreement. Executive has been represented by, or had the opportunity to be represented by, counsel in connection with the negotiation and execution of this Release. Any
rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not be applied in the construction or interpretation of this Release. 
  

					
	 	 	Executive	 	 
			
	Date:                                      
                      	 	  
	 	
		 	  
	 	

  

 A-3 

 Exhibit B 
 LIST OF APPROVED OUTSIDE ACTIVITIES 
 1.    Member of the Board of Directors 
 -Onyx Pharmaceuticals (Nasdaq: ONXX) 
 -Sangamo Biosciences (Nasdaq: SANG) 
 -Somaxon Pharmaceuticals (Nasdaq: SOMX) 
 2.    Consultant/Advisor 
 -Stiefel Laboratories (pursuant to an agreement dated 12/27/06) 
 3.    Non-profit 
 -Chairman of the Board-Biotechnology Institute 
  

 A-4

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