Document:

exv10w8

 

Exhibit 10.8

14 June 2006

Cheri Jones

100 Breakwater Drive

Fort Collins, CO 80525

Dear Cheri,

Offer of employment, Vice President, Regulatory Affairs

We are pleased to offer you employment in the role of Vice President, Regulatory Affairs of Peplin
Operations USA, Inc. (the “Company”) based in the San Francisco Bay Area and reporting to the CEO
of Peplin Limited (“Peplin”) at a starting salary of $245,000 per annum. You will be an officer of
the Company and have accountability principally for all U.S. regulatory activities of the Company.
You will sit on the Peplin’s drug development committee, together with the Chief Scientific Officer
and Chief Medical Officer. This role encompasses the responsibility to build a complete regulatory
capability, both internally and through consultants, as the Company’s regulatory requirements grow
and evolve. You will represent Peplin in all FDA interactions.

The Company will assist with the relocation of you and your immediate family by arranging at its
cost, or reimbursing the reasonable costs of, economy class air travel from Colorado to the Bay
Area and transportation and storage (for up to two months) of your furniture and household effects.
In addition, the Company will facilitate your family’s orientation into the Bay Area and arrange at
its cost temporary accommodation for you and your family in a furnished apartment (or similar style
accommodation) for up to eight weeks during which time you should make arrangements for more
permanent accommodation. Relocation arrangements can be discussed further and agreed with the
Company’s nominated representative in due course. In the event that you terminate your employment
with the Company within twelve months from the commencement date, you may, at Company’s discretion,
be required to repay to the Company the actual costs incurred by the Company in providing
relocation assistance as outlined in this clause

	1.	 	Employment
	 
	1.1	 	You will be an “at will employee” of the Company. This means that either you or the Company
may terminate your employment at any time, for any reason or no reason, with or without cause
or notice. Regular employment at Peplin Operations USA, Inc. is for no specified period of
time and the Company makes no guarantee or contract of continued employment. Although your
job duties, title, compensation and benefits, as well as the Company’s personnel policies, may
change from time to time, the “at

 

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	 	 	will” nature of your employment may not be changed except in
an express written agreement signed by you and the CEO of Peplin Limited.
	 
	1.2	 	Subject to Article 1.3, if either you or the Company decides to terminate your employment
with the Company without cause, 3 months prior written notice of termination must be given by
the party seeking to terminate.
	 
	1.3	 	In the event the Company decides to terminate your employment without cause, the Company may
terminate your employment immediately provided that it makes payment in lieu of the 3 months
notice period referred to in Article 1.2.
	 
	1.4	 	The Company may terminate your employment immediately if you:

	 	(a)	 	engage in misconduct;
	 
	 	(b)	 	commit a willful breach of or willfully neglect to perform or observe any of
your obligations under this letter;
	 
	 	(c)	 	fail to observe or perform any of the duties or obligations imposed on you
under your conditions of employment and do not correct such failure within 7 days of
being instructed to do so in writing by the Company;
	 
	 	(d)	 	are convicted of or plead nolo contender to any felony or crime of moral
turpitude; or
	 
	 	(e)	 	refuse to carry out the lawful directions of a superior.

	2.	 	Employment details
	 
	2.1	 	Attached to this letter is Schedule 1. Schedule 1 sets out your current:

	 	(a)	 	commencement date;
	 
	 	(b)	 	workplace;
	 
	 	(c)	 	salary;
	 
	 	(d)	 	medical and other benefit plans;
	 
	 	(e)	 	leave entitlements;
	 
	 	(f)	 	manner of salary payment; and
	 
	 	(g)	 	any other benefit that may be applicable to your employment.

	2.2	 	To the extent that a matter is not addressed in this offer of employment, your engagement is
governed by detailed policies applying from time to time to the conditions of staff
employment, currently set out in the Company’s Policies and Procedures, copies of which are
available for your inspection.
	 
	3.	 	Place of work
	 
	3.1	 	Your place of work is listed in Schedule 1. You acknowledge however that you may, from time
to time, be requested to work temporarily at locations other than the place of work listed in
Schedule 1. You will also be required to travel nationally and internationally as part of
your duties.

 

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	4.	 	Hours of work
	 
	4.1	 	From time to time you may be required to work outside your normal hours of work in order to
meet our business needs and your individual objectives. The expectation that your work hours
will vary has been taken into consideration when determining your salary.
	 
	5.	 	Remuneration and performance
	 
	5.1	 	Your salary and performance will be reviewed regularly. There is no guarantee of an increase
in your salary at each review.
	 
	5.2	 	The Company shall reimburse or meet the reasonable cost of expenses which are necessarily
incurred by you in the performance of your duties and the discharge of your responsibilities
in accordance with criteria determined from time to time by the Company. You must provide
receipts or other evidence of payment and the purpose of each expense to support each claim or
outlay.
	 
	5.3	 	You may elect certain benefits from time to time at your own expense. In the event you do
so, you authorize the Company to deduct the expense from your regular pay.
	 
	6.	 	Bonuses and incentives
	 
	 	 	Monthly bonus
	 
	6.1	 	Subject to your continuing employment with Peplin, you shall be paid a monthly bonus for a
3 year period commencing on the date of your transfer to the San Francisco Bay Area as
follows:

	 	(a)	 	$1,030 in the first year;
	 
	 	(b)	 	$515 in the second year; and
	 
	 	(c)	 	$257.50 in the third year.

	 	 	Options
	 
	6.2	 	You will receive, subject to Peplin Ltd board approval, 500,000 one-off ‘sign-on’ options
in Peplin Ltd. Subject to your continuing employment with Peplin these options will vest in
three annual tranches of 166,667, 166,666 and 166,666 with the first vesting as at 1 January
2007. These options will have a strike price equal to the average of the closing share price
of Peplin Ltd shares as quoted on the Australian Stock Exchange over the five trading days
preceding the date of grant and an expiration date of 31 December 2011.
	 
	 	 	STI and LTI
	 
	6.3	 	You shall, in addition to the salary detailed in the Schedule 1, be eligible to
participate in annual short term incentive (“STI”) and long term incentive (“LTI”)
arrangements based upon a complete year in your position as follows:

	 	(a)	 	Twenty per cent (20%) of your salary will be available as a maximum incentive
on the achievement of individual, team and Company goals agreed by you and the CEO. In
broad terms, this bonus element will be apportionable over these goals in the ratio
50:25:25. Your maximum STI for 2006 is 20% x

 

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	 	 	 	$245,000 = $49,000, pro-rata for the
period of your commencement through to December 31, 2006.
	 
	 	(b)	 	From time to time as determined by the Board of Peplin Limited, an additional
LTI may be made available to you based upon the level of achievement of personal and
corporate performance. This LTI will be expressed as a right to shares, performance
rights or options in Peplin Limited at a determination point or points in the future.
Participation by eligible persons employed by the
Company must be approved by the Board of Peplin Limited. Peplin Operations USA’s
policy in this respect is that target LTI’s in general should be equal to twice the
annual STI.

	7.	 	Vacation entitlements
	 
	7.1	 	You will be entitled to 20 days vacation per year to be taken at a time mutually agreeable to
you and the Company. In addition, you will receive 8 paid public holidays per year together
with 2 floating holidays.
	 
	7.2	 	You may not accrue more than 30 days of accrued, unused vacation time. In the event you
accrue 30 days of unused vacation time, you will not accrue further vacation time until you
have used some of the accrued, unused vacation time.
	 
	7.3	 	Accrued, unused vacation time is paid upon termination of employment.
	 
	8.	 	Sick/carer’s leave
	 
	8.1	 	You are entitled to 10 days paid sick leave in any year. Sick leave entitlements are
cumulative.
	 
	8.2	 	Sick leave is not paid out upon termination of employment.
	 
	8.3	 	For an absence in excess of five days, you must provide a medical certificate which sets out
the nature of your illness and the approximate period of absence from work.
	 
	8.4	 	You are entitled to family and medical care leave in accordance with US federal and
California state law as in effect from time to time.
	 
	9.	 	Your duties
	 
	9.1	 	The duties of your position are set out in Schedule 2 and include those advised by us from
time to time.
	 
	9.2	 	While employed by us, you are expected to devote your full working time and attention to us,
and you will not:

	 	(a)	 	perform your duties other than for us or on our behalf; or
	 
	 	(b)	 	engage in any other employment, business or profession, without written
permission.

	9.3	 	You will at all times act in the best interests of our business. You must comply with all
lawful and reasonable directions we give you.
	 
	9.4	 	You will not accept any payment or other benefit from any person as an inducement or reward
for any act or forbearance in connection with any matter or business

 

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	 	 	transacted by us or on our behalf. You must disclose to us any of your interests which
may compete or conflict with our interests.
	 
	10.	 	When your employment ends
	 
	 	 	On termination, you will immediately return all property belonging to us, including any
Confidential Information, documents, records, computer disks, keys and any other property.
	 
	11.	 	Protection of our goodwill
	 
	11.1	 	In consideration of your employment and to protect our goodwill, you agree that you will not
in any capacity, directly or indirectly:

	 	(a)	 	for the period of employment and for a period of 6 months after termination of
employment, solicit or entice or endeavor to solicit or entice, any director, manager,
officer, employee, or contractor of ours to terminate his or her relationship with us
or become employed by or a contractor to any other person or entity; or
	 
	 	(b)	 	for the period of employment and any time thereafter, use any of the Company’s
Confidential Information, as defined in section 12 below, belonging to us to:

	 	•	 	solicit or entice or endeavor to solicit or entice from us using any trade
secret of the company, the business of any person who, during your employment,
has been a customer, supplier, distributor or licensee of ours, and who you
have had dealings with in the 12 months prior to termination;
	 
	 	•	 	solicit or persuade using any trade secret of the company any person who has
dealt with us during the term of your employment, or is in the process of
negotiating with us at the date of termination or completion of this Agreement,
to cease doing business with us; or
	 
	 	•	 	solicit or entice using any trade secret of the company or endeavor to
solicit or entice any person to do business with yourself or any other person
or entity.

	11.2	 	You acknowledge that any of the activities described in
11.1(a) or (b) is unfair competition.
Article 11.1 will have a cumulative effect of several separate restraints for each activity
listed in 11.1(a) and (b). All possible combinations must be complied with.
	 
	11.3	 	The validity of each separate restraint will not be affected by the invalidity, if any, of
any other restraint.
	 
	11.4	 	You may seek our consent in writing to be released from any restraint contained in this
Article 11.
	 
	12.	 	Policies
	 
	12.1	 	To help our business operate lawfully, safely and efficiently, we have policies and
procedures (including but not limited to those referred to at Articles 13 and 14 below) which
set out various rights, obligations duties and procedures relevant to your

 

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	 	 	employment. You will be expected to comply with these policies and procedures. Serious breaches
of our policies and procedures could result in termination of your employment.
	 
	12.2	 	To meet the changing environment in which we operate, it will be necessary to change these
policies and procedures from time to time. You will be given notice of the changes and will
be required to follow the changed policies and procedures.
	 
	13.	 	Intellectual property
	 
	 	 	You must comply with the Company’s policy on intellectual property.
	 
	14.	 	Confidential information
	 
	 	 	You must comply with the Company’s policy on confidential information.
	 
	15.	 	Interpretation
	 
	15.1	 	If any term of your contract of employment is found to be or becomes unenforceable or
contrary to law, it will be severed and this will not in any way affect the enforceability of
the remaining terms.
	 
	15.2	 	The formation, construction, and performance of this Agreement shall be construed in
accordance with the laws of California.
	 
	15.3	 	You and the Company agree that, if a dispute arises concerning or relating to your employment
with the Company, the dispute shall be submitted to binding arbitration pursuant to the
Federal Arbitration Act using the rules for the resolution of employment disputes of the
American Arbitration Association then in effect. The arbitration shall take place in San
Francisco County, California, and both you and the Company agree to submit to the jurisdiction
of the arbitrator selected in accordance with American Arbitration Association (“AAA”) rules
and procedures. Any arbitration under this Article shall be conducted in accordance with the
AAA rules and procedures then applicable to employment disputes except as otherwise specified
in this Article, and shall provide for reasonable discovery. The cost of any arbitration
under this Article shall be born equally by the parties; provided, however, to the extent any
costs are unique to arbitration and/or would exceed the costs you would incur in a court of
competent jurisdiction, those costs shall be born by the Company. Except as set forth in this
Article, you and the Company agree that this arbitration procedure will be the exclusive means
of redress for any disputes relating to or arising from your employment with the Company,
including disputes over rights provided by federal, state, or local statutes, regulations,
ordinances, and common law, including all laws that prohibit discrimination based on any
protected classification. The parties expressly waive the right to a jury trial, and agree
that the arbitrator’s award shall be rendered in writing, final and binding on both parties,
and nonappealable. The arbitrator shall have discretion to award monetary and other damages,
or to award no damages, and to fashion any other relief the arbitrator deems appropriate. The
parties shall each bear their own attorney’s fees, provided however, that the arbitrator shall
have discretion to award the prevailing party reasonable costs and attorney fees to the extent
authorized by applicable law.
	 
	15.4	 	Subject to our right to amend our policies and procedures and change your duties, any
amendment to this agreement is not binding unless agreed between you and the Company and
recorded in writing.

 

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	15.5	 	This letter together with our policies and procedures is the entire agreement and
understanding between you and the Company on everything connected with your employment.
	 
	15.6	 	Any prior agreement or understanding on anything connected with your employment is superseded
by this letter.
	 
	16.	 	Obligations owed to related entities bodies corporate
	 
	16.1	 	Throughout this letter are references to ‘we’, ‘us’, ‘our business’, ‘our goodwill’, ‘our
employees’ and ‘our customers, clients or suppliers’. These references are references not
only to Peplin Operations USA, Inc. but also to any of our affiliates, so that your duties and
obligations set out in the following Articles of this letter apply not only to Peplin
Operations USA, Inc. but also to our affiliates:

	 	(a)	 	Article 11 – Protection of our goodwill.
	 
	 	(b)	 	Article 12 – Policies.
	 
	 	(c)	 	Article 13 – Intellectual property.
	 
	 	(d)	 	Article 14 – Confidential Information.

Please confirm your acceptance of the terms of your employment by signing and returning this copy.
You should retain a copy for your records.

You acknowledge that you have been given the opportunity by us to seek independent advice prior to
entering into this agreement.

Yours sincerely,

	 	 	 	 	 
	/s/ Michael Aldridge

	 	 
	 	 
	 

Michael Aldridge, Director, Peplin Operations USA, Inc.

	 	 	 	 

I, Cheri Jones, accept that the contents of this letter represent the terms of my employment.

	 	 	 	 	 
	/s/ Cheri Jones

	 	Date: 06 / 13 / 06
	 	 
	 

Cheri Jones

	 	 	 	 

 

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SCHEDULE 1

	 	 	 
	Employer:

	 	Peplin Operations USA, Inc.
	 
	 	 
	Employee’s full name:

	 	Cheri Jones
	 
	 	 
	Date of agreement:

	 	June 13, 2006
	 
	 	 
	Date of commencement:

	 	June 15, 2006
	 
	 	 
	Workplace:

	 	San Francisco Bay Area
	 
	 	 
	Remuneration:

	 	US$245,000 base salary per annum
	 
	 	 
	Manner of salary
payment:

	 	Monthly in advance, into an account nominated by you
	 
	 	 
	Benefit plans:

	 	Employee, employee’s dependents and domestic
partner shall be entitled to participate in all
medical benefit plans, including dental and vision
plans, when and as such plans are implemented and
generally made available to officers of the
Company. In addition employee will receive life
insurance, short-term disability, long-term
disability, and accidental death or dismemberment
coverage at no cost and may participate in 401(k),
savings and investment plans and flexible spending
accounts. Please refer to the Company’s policies
and procedures for further information on such
plans.
	 
	 	 
	Cell phone and home
internet:

	 	Employee will be provided with a cell phone, at no
cost to Employee, to be used for Company related
calls or will be eligible to claim reimbursement
for reasonable Company related call costs from
using Employee’s personal cell phone.
	 
	 	 
	 

	 	Employee will be entitled to claim reimbursement of
the cost of installing and maintaining internet
access at your home
	 
	 	 
	Other Benefits:

	 	Other than as set forth in this Schedule 1 and the
accompanying offer letter, there are no other
benefits.
	 
	 	 
	Paid leave entitlements:

	 	Paid leave entitlements shall be as set forth in
the accompanying offer letter.

 

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SCHEDULE 2

Position Description

Your position is ‘Vice President, Regulatory Affairs’ based in the San Francisco Bay Area and
reporting to Chief Executive Officer of Peplin Limited. In this role, you have accountability for:

	 	(a)	 	You will be an officer of the Company and have accountability principally for the all
U.S. regulatory activities of the Company.
	 
	 	(b)	 	You will sit on the Peplin’s drug development committee, together with the Chief
Scientific Officer and Chief Medical Officer and be a member of the global product
development team.
	 
	 	(c)	 	You will have the responsibility to build a complete regulatory capability, both
internally and through consultants, as the Company’s regulatory requirements grow and
evolve.
	 
	 	(d)	 	You will represent Peplin in all FDA and other relevant regulatory interactions.exv10w9

 

Exhibit 10.9

27 April 2006

Mr David Smith

85 Gordon Street

HAWTHORNE QLD 4171

Dear David,

Peplin Limited (the “Company”) is pleased to offer you a contract of employment for the role of
Company Secretary and Director, Finance from 1 April 2006. This contract replaces all previous
terms and conditions of employment with the Company.

The conditions of your employment are as follows:

	1.	 	Appointment
	 
	 	 	Your position is Company Secretary and Director, Finance, based in Brisbane and reporting to
the CFO. In this role, you have accountability for:

	 	•	 	company secretariat functions of the Company,
	 
	 	•	 	accounting, reporting, budgeting, forecasting and taxation activities and
functions of the Company,
	 
	 	•	 	providing financial services and support to Company personnel,
	 
	 	•	 	developing, upgrading and operating business and management systems, and
	 
	 	•	 	managing treasury activities for the Company.

	2.	 	Remuneration

	 	(a)	 	Your total annual remuneration package comprises a Salary and such other benefits as
are chosen by you and agreed by the Company, paid monthly in advance at the start of each
month. The total cost to the Company of the package (including Fringe Benefits Tax to the
extent applicable) is $132,000 per annum (your “Total Package”), with effect from 1 April
2006. Clause 11 of this letter itemises additional benefits that do not fall within the
Total Package definition. Benefits you may elect to include as part of your Total Package
are confined to car leasing and superannuation; information on these is available from the
Office Manager.

 

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	 	(b)	 	Your Total Package will be reviewed annually with any adjustments based solely on
performance. Your next review of the Total Package will take effect on 1 January 2006.

	3.	 	Incentive Plan
	 
	 	 	You shall, in addition to the compensation detailed in the remuneration clause, be eligible to
participate in short term incentive (“STI”) and long term incentive (“LTI”) arrangements based
upon a complete year in your position as follows:

	 	a)	 	Fifteen percent (15%) of your Salary will be available as a maximum incentive on the
achievement of individual, team and Company goals agreed by you and myself. In broad
terms, this bonus element will be apportionable over these goals in the ratio 50:25:25.
Your maximum short term incentive for 2006 is 15% x $120,000 = $18,000.
	 
	 	b)	 	From time to time as determined by the Board, an additional long-term incentive may
be made available to you based upon the level of achievement of personal and corporate
performance. This LTI will be expressed as a right to Peplin shares or options at a
determination point or points in the future. Participation by eligible persons employed
by the Company must be approved by the Board of Peplin Limited.

	4.	 	Term of Employment
	 
	 	 	Your appointment to this role commences on 1 April 2006 and will continue until terminated in
accordance with the procedures set out in Clause 17. Your start date with the Company is 5
July 2004.

	5.	 	Working Hours and Responsibilities

	 	(a)	 	As a valued member of the team working for the Company, you will appreciate that your
position is task rather than time oriented and you will be expected to work such hours as
are required for the satisfactory performance of your duties. Your Total Package allows for
such hours.
	 
	 	(b)	 	During your appointment as Company Secretary and Director, Finance you shall:

	 	(i)	 	subject to the directions of your manager, administer, conduct the business
of, and control and manage the productive resources of the Company in your functional
area in an effective and efficient manner, and perform tasks reasonably associated
with that function;
	 
	 	(ii)	 	devote substantially the whole of your time and attention, during normal
commercial hours of business and at such other times as the nature of the Company’s
business shall require, to the performance of your duties and the discharge of your
responsibilities; and

 

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	 	(iii)	 	well and faithfully serve the Company to the best of your ability and use
your utmost endeavours to promote the interests of the Company in all things.

	6.	 	Annual Leave
	 
	 	 	You will be granted four weeks paid holidays per annum to be taken at a time mutually agreeable
to your manager and yourself. All accruals of annual leave are maintained.

	7.	 	Statutory Holidays
	 
	 	 	You will be entitled to statutory holidays observed in Brisbane.

	8.	 	Long Service Leave
	 
	 	 	You will be entitled to long service leave at the rate of 8.6667 weeks after ten years
continuous service. All accruals of long service leave to date are maintained.

	9.	 	Sick Leave
	 
	 	 	You are entitled to 10 days paid sick leave in any year. Sick leave entitlements are
cumulative.
	 
	 	 	For an absence in excess of five days, you must provide a medical certificate which sets out
the nature of your illness and the approximate period of absence from work.
	 
	 	 	Sick leave policy should be read in conjunction with clause 17(a)(i) of this letter.

	10.	 	Superannuation
	 
	 	 	You are required to become a member of a complying superannuation fund. You may select the
superannuation fund to which the Company will make future superannuation contributions. If you
do not make a choice, contributions will be paid into the Company’s default fund. The gross
amount of contributions, comprising your individual contribution and that of the Company (the
latter to be 10% of Salary), is included in your Total Package.
	 
	 	 	Your Salary will be used for determining contributions under the plan. Your Salary for this
purpose is $120,000 per annum.
	 
	 	 	Peplin’s default superannuation fund is SunSuper. Information on the fund will be made
available to you in due course but an introduction to SunSuper can be found at the SunSuper
website at www.sunsuper.com.au .

 

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	11.	 	Job Facility Provisions

	 	(a)	 	Telephone
	 
	 	 	 	You will be provided with a mobile telephone at no cost to yourself to be used for
Company related calls or be eligible to claim reimbursement for the reasonable costs of
your personal mobile telephone.
	 
	 	(b)	 	Internet Access
	 
	 	 	 	You will be entitled to claim reimbursement of the cost of installing and maintaining
(to a maximum of $60 per month) internet access at your home.
	 
	 	(c)	 	Car Parking
	 
	 	 	 	You are provided with motor vehicle parking at the Company’s premises at no cost to
yourself.

	12.	 	Out of Pocket Expenses
	 
	 	 	The Company shall reimburse or meet the reasonable cost of expenses which are necessarily
incurred by you in the performance of your duties and the discharge of your responsibilities in
accordance with criteria determined from time to time by the Company. You must provide receipts
or other evidence of payment and the purpose of each expense to support each claim or outlay.
Where applicable, reimbursement claims are to be substantiated using an FBT declaration.

	13.	 	Outside Work and Directorships of Other Companies
	 
	 	 	You are not to perform remunerated work or otherwise be engaged or concerned in any other
business or occupation whatsoever without the prior written approval of the CEO and Managing
Director.
	 
	 	 	You require the prior written approval of the Board before accepting a directorship of any
company.
	 
	14.	 	Company Policy
	 
	 	 	To the extent that a matter is not addressed in this letter, your engagement is governed by
detailed policies applying from time to time to the conditions of staff employment, currently
set out in the Company’s Policies and Procedures, copies of which are available for your
inspection.

 

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	15.	 	Security of Information

	 	(a)	 	You acknowledge that -

	 	i	 	notwithstanding that you will acquire certain information in
the ordinary course of your duties, the property of the Company includes, and
will include, all confidential information and all records, documents,
accounts, plans, formulae, designs, specifications; price lists, customer
lists, correspondence and letters and papers of every description,
electronically recorded data, including all copies of or extracts from the
same, within your possession or control relating to the affairs or business of
the Company and belonging to the Company or which may come into your
possession in the course and by reason of your employment, whether or not
originally supplied by the Company (the “Company’s Documents”);
	 
	 	ii	 	the information contained in the Company’s Documents has
been, and will be, acquired by the Company at considerable effort and expense;
	 
	 	iii	 	the Company has also expended, and will also expend,
considerable effort and moneys in establishing its customer base and employee
skills; and
	 
	 	iv	 	accordingly, it is reasonable that you should be subject to
the restrictions set out in this Clause.

	 	(b)	 	You will not, either during the term of your employment or after its termination,
except in the proper course of your duties under this agreement or as required by law or
the Company, use or divulge to any person whomsoever and shall use your best endeavours to
prevent the publication or disclosure of any trade secret or any confidential information
concerning the products, business, finances, customers or trade connections of the Company
or any of its dealings, transactions or affairs and will use your best endeavours to
prevent the use or disclosure of any such information to third parties.
	 
	 	(c)	 	You shall not during your employment make, prepare, obtain or otherwise bring into
existence other than for the benefit of the Company, any records, documents, accounts,
plans, formula, designs, specifications, prices, customer lists, correspondence, letters,
papers of any description, or electronically recorded data, including any copies,
photocopies, photographs or extracts of the same relating to any matter within the scope of
the business of the Company relating to the affairs or business of the Company, nor shall
you use or permit to be used any of this material otherwise than for the benefit of the
Company. All of the material shall be and remain at all times the property of the Company
and you shall, upon termination of your employment, leave the documents at the registered
office of the Company.
	 
	 	 	 	Notwithstanding any of the above provisions, you will be entitled to keep, and upon
termination retain, personal diaries and records

 

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	 	 	 	relating to your employment, for personal use (including use in any future
proceedings in which you may be directly or indirectly involved), provided the
Company is informed of the existence of such material and provided you let the
Company have copies upon request. You agree you shall not take commercial advantage
of any such personal records without the prior consent of the Company.

	 	(d)	 	You agree that all inventions, discoveries, knowledge, know-how, trade secrets,
information capable of protection by patent, copyright, design or other registration or
notification, and all other forms of intellectual property which come into your possession
or control as a direct or indirect result of your employment are the property of the
Company.
	 
	 	(e)	 	In this clause, reference to the Company includes all corporations which are related
bodies corporate.

	16.	 	Employee Privacy Consent
	 
	 	 	The Company is bound by the Privacy Act 1998 (Cth) and the National Privacy Principles
contained within that Act.
	 
	 	 	The Company may from time to time request you to provide it with personal information,
sensitive information and health information about you to enable it to administer its
employment relationship with you. If you do not provide the Company with the information which
it may request about you, then the Company may not be able to fully administer its employment
relationship with you. When requesting information from you, the Company will advise you of the
nature of the information which it requires and the consequences of not having the requested
information.
	 
	 	 	The Company may also request third parties to provide it with information about you. Such third
parties include external health service providers and other service providers engaged by the
Company to deliver services related to your employment.
	 
	 	 	You acknowledge that the personal, sensitive and health information collected about you may be
used by the Company to enable it to administer its employment relationship with you. In
particular, the Company may use the personal, sensitive and health information collected about
you to endeavour to ensure your fitness for work and safety in any of the work environments in
which you may work, together with endeavouring to ensure that you receive any prompt treatment
that may be required. You further acknowledge that the personal, sensitive and health
information collected about you may be used by the Company for any other purpose reasonably
related to your employment with the Company. You consent to any such uses of the personal,
sensitive and health information held about you by the Company.
	 
	 	 	You acknowledge that the Company may disclose the personal, sensitive and health information
which it holds about you to other companies within the Peplin Group, the Company’s insurers and
insurance loss adjusters, legal and other professional advisers, financiers, joint venture
partners, health service providers or other organisations which have your consent or which are
otherwise authorised

 

7

	 	 	by law to collect the personal, sensitive and health information held about you. The Company
will only disclose the personal, sensitive and health information which it holds about you if
such disclosure is necessary for a purpose reasonably related to your employment with the
Company. You consent to any such disclosures of the personal, sensitive and health information
held about you by the Company.
	 
	 	 	You may gain access to the personal information held about you by contacting the Office
Manager.

	17.	 	Termination of Employment

	 	(a)	 	Notwithstanding anything else contained in your current conditions of employment:

	 	(i)	 	if, in any period of twelve (12) months during the continuance of
your employment with the Company, you are unable to perform the duties of your
position for a continuous period of nine months or if in any period of
twenty-four (24) months you are unable to perform the duties of your position for
separate periods in aggregate of twelve months; or
	 
	 	(ii)	 	if you commit a wilful breach of or wilfully neglect to perform or
observe any of your obligations under your conditions of employment, Company
Policy or Code of Conduct; or
	 
	 	(iii)	 	if you commit any other act which would entitle the Company to
dismiss you summarily; or
	 
	 	(iv)	 	if you fail to observe or to perform any of the duties or
obligations imposed on you under your conditions of employment and do not correct
this failure within seven (7) days of being requested in writing by the Company
to do so,

	 	 	 	then the Company may forthwith terminate your employment under this Termination of
Employment Clause by notice in writing, effective from the date of such notice. In the
circumstances of termination of employment as a result of any of (a), (i), (ii), (iii)
or (iv) above you shall normally be paid outstanding remuneration (if any) to date of
termination, accumulated annual leave and accumulated long service leave (provided
that you have passed your pro-rata entitlement point). Annual leave and long service
leave payable shall be calculated on the basis of your Total Package. The Company
reserves the right, in the event of wilful or fraudulent misconduct, to withhold
termination payments pending resolution of the circumstances. No other payments are
applicable for termination caused by (a) (i), (ii), (iii) or (iv) of this Termination
of Employment Clause.
	 
	 	(b)	 	You may, by one month notice in writing, terminate your employment with the Company.

 

8

	 	(c)	 	The Company may, by notice in writing effective no less than one month from the date
of such notice, terminate your employment under this agreement. The Company may terminate
your employment immediately or at any time during the notice period and pay to you the
Salary and Company superannuation contribution for the balance of the notice period.
Should your employment be terminated by the Company other than for the reasons detailed in
(a) (i), (ii), (iii) or (iv) of this Termination of Employment Clause, the Company shall
pay to you, in addition to the notice period, a severance payment calculated in accordance
with the relevant legislation, such payment based upon your Total Package and determined
as the number of weeks for your period of continuous service with the Company. Details of
the number of weeks for periods of continuous service under the legislation are available
from the Office Manager.
	 
	 	(d)	 	At the date of your termination of employment you shall be paid any outstanding
remuneration, accumulated annual leave and accumulated long service leave (provided that
you have passed your pro-rata entitlement point). Annual leave and long service leave
payable shall be calculated on the basis of your Total Package.
	 
	 	(e)	 	In the event of termination for any reason, your participation (if any) and in turn
your entitlement (if any) to vesting of Peplin options or shares under any Employee or
Officers Share or Option Plans shall be determined in accordance with the terms of such
Plans.
	 
	 	(f)	 	Subject to commencement of the corporate superannuation plan, in the event of
termination for any reason, your entitlements under the Peplin corporate superannuation
plan will be determined by your membership of the plan and the governing Trust Deed and
Rules.

	18.	 	Governing Law
	 
	 	 	This agreement shall be governed by and shall be construed and interpreted in accordance with
the laws of Queensland.
	 
	19.	 	Other Agreements Superseded
	 
	 	 	This agreement supersedes and replaces all other contracts of employment, understandings or
arrangements made or developed prior to your acceptance of this offer.

 

 

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	20.	 	Acceptance of Conditions
	 
	 	 	Please confirm your agreement with the above conditions by signing the attached copy and
returning it to me.

Yours sincerely,

/s/ Michael Aldridge

Michael Aldridge

CEO and Managing Director

I accept the conditions of my employment detailed in the letter dated 27 April 2006.

 /s/ David Smith

Signed

David Smith

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