Document:

EXHIBIT 10.20

 

RELIANT PHARMACEUTICALS, LLC.

 

EQUITY INCENTIVE PLAN

 

RESTRICTED UNIT AGREEMENT

 

Unless
otherwise specified herein, all capitalized terms shall have the same meanings
as set forth in the Reliant Pharmaceuticals, LLC Equity Incentive Plan (the “Plan”).

 

I.                                         NOTICE OF GRANT

 

Ernest Mario

555 Byron Street,
#401

Palo Alto, California 94301

Facsimile:  (650) 473-6948

 

You (“Participant”) are hereby granted Class One Common Units (the
“Units”) in the Company, subject to the
terms and conditions of the Plan and this Restricted Unit Agreement. The terms
of your grant are set forth below:

 

	
  Date of Grant:

  	
   

  	
  June 25, 2003

  
	
   

  	
   

  	
   

  
	
  Vesting Commencement
  Date:

  	
   

  	
  April 29, 2003

  
	
   

  	
   

  	
   

  
	
  Grant Price per Unit:

  	
   

  	
  $0.01

  
	
   

  	
   

  	
   

  
	
  Units Granted:

  	
   

  	
  274,968

  
	
   

  	
   

  	
   

  
	
  Total Grant Price:

  	
   

  	
  $2,749.68

  

 

Vesting
Schedule:

 

The
Units subject to this Restricted Unit Agreement (the “Restricted Units”) shall vest and be
released from Repurchase (as defined below), according to the following
schedule:

 

Participant
shall be fully vested in 91,656 Units on the date hereof. Participant shall
vest in 91,656 Units on each anniversary of the Vesting Commencement Date, so
that all of the Restricted Units shall be vested on the second anniversary of
the Vesting Commencement Date; provided, however,
that Participant shall be 100% vested in all of the Restricted Units upon the
effective date of a Change in Control (as defined below).

 

Restricted
Units shall vest only for so long as Participant remains a Service Provider.

 

 

“Change of Control” shall mean (i) the sale, lease,
exchange, license or other disposition of all or substantially all of Company’s
assets in one transaction or series of related transactions; (ii) a merger
or consolidation as a result of which the holders of Company’s issued and
outstanding voting securities immediately before such transaction own or
control less than a majority of the voting securities of the continuing or
surviving entity immediately after such transaction and/or (iii) the
acquisition (in one or more transactions) by any person or persons acting
together or constituting a “group” under Section 13(d) of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”),
together with any affiliates thereof (other than members of the Company as of
the date hereof and their respective affiliates) of beneficial ownership (as
defined in Rule 13d-3 under such Exchange Act) or control, directly or
indirectly, of at least eighty percent (80%) of the total voting power of all
classes of securities entitled to vote generally in the election of the Company’s
board of managers or similar governing body; provided that for the purposes of
the immediately preceding clause (iii) neither a public offering of Company’s
securities nor any financing transaction or series of financing transactions
shall constitute a Change of Control.

 

II.                                     AGREEMENT

 

1.                                       Grant
of Restricted Units. The Company hereby grants to the Participant the right
to purchase the number of Restricted Units set forth in the Notice of Grant, at
the purchase price set forth in the Notice of Grant (the “Grant Price”).
Participant has ten (10) days from the Date of Grant set forth in the Notice of
Grant to exercise his/her right to purchase the Restricted Units and deliver
the Purchase Price. If Participant does not so exercise his/her right to
purchase the Restricted Units, then this Agreement shall be null and void and
Participant shall have no further rights in the Restricted Units.

 

Notwithstanding
anything to the contrary anywhere else in this Restricted Unit Agreement, this
grant of Restricted Units is subject to the terms, definitions and provisions
of the Plan, the Employment Agreement and the LLC Agreement which are
incorporated herein by reference.

 

2.                                       Purchase
and Method of Payment. Payment of the Grant Price shall be by any of the
following, or a combination thereof, at the election of the Participant:

 

(a)                                  cash;

 

(b)                                 check;
or

 

(c)                                  with
the consent of the Company’s Board of Managers or committee thereof that is
responsible for the administration of the Plan (the “Administrator”),
property of any kind which constitutes good and valuable consideration
(including the surrender of underlying Units).

 

Participant
shall, deliver the Grant Price to the Company along with his or her Investment
Representation Statement in the form attached hereto as Exhibit A.

 

3.                                       Vesting.
Participant shall vest in the Restricted Units as set forth in the Notice of
Grant. For purposes of this Restricted Unit Agreement, the Restricted Units
shall vest based

 

 

upon Participant’s continued status as a Service Provider. Upon
termination of Participant’s status as a Service Provider, the unvested portion
of the Restricted Units (“Unvested Units”)
shall be subject to Repurchase. The vested portion of the Restricted Units (“Vested Units”) shall not be subject to Repurchase.

 

4.                                       Repurchase.

 

(a)                                  If
Participant ceases to be a Service Provider for any reason, the Company shall
purchase from the Holder thereof, all of the Participant’s Unvested Units as of
the date on which Participant ceases to be a Service Provider (the “Repurchase”) at the lesser of (i) the Grant Price or
(ii) the Fair Market Value thereof (the “Repurchase
Price”). The Company shall deliver the Repurchase Price, to the
Holder by check, cash or wire transfer within ninety (90) days of the date on
which Participant ceases to be a Service Provider.

 

(b)                                 The
Unvested Units shall be released from Repurchase in accordance with the Vesting
Schedule set forth in the Notice of Grant until all Units are released from
Repurchase.

 

5.                                       Rights
and Obligations as a Member. Subject to Repurchase the Participant shall
have all rights of a Common Holder with respect to the Restricted Units as
provided in the LLC Agreement. By executing this Agreement, Participant,
without further action on his or her part, agrees to be deemed a party to, a
signatory of and bound by the LLC Agreement, and the Restricted Units shall be
subject to such rights and restrictions as contained therein. Participant shall
enjoy rights as a Common Holder and shall be subject to all of the limitations,
restrictions and obligations contained in the LLC Agreement as a Common Holder,
until such time as Holder disposes of the Units or the Company and/or its
assignee(s) exercises the Right of First Refusal or Rights of Repurchase
provided in this Agreement or otherwise in the LLC Agreement. Upon such
exercise, Participant shall have no further rights as a holder of the Units so
purchased except the right to receive payment for the Units so purchased in
accordance with the provisions of this Agreement and the LLC Agreement. This
Agreement shall not affect in any way the ownership, voting rights or other
rights or duties of Participant, except as specifically provided herein.

 

6.                                       Participant’s
Rights to Transfer Units.

 

(a)                                  Limitations
on Transfer. Unvested Units (or any securities into which such Units may be
converted) may not be sold, pledged, assigned, hypothecated, transferred, or
disposed of in any manner; provided, however, that Unvested Units may with the
consent of the Administrator be transferred to the Participant’s Immediate
Family and to Participant’s Immediate Family’s trusts, foundations,
partnerships and other family entities, so long as such transfer is without
receipt of any consideration therefore, and that any Unvested Unit so transferred
shall remain subject to the terms and conditions of this Agreement. Participant
may transfer Vested Units (or any securities into which such Units may be
converted), subject to the restrictions contained in this Section 6 and the LLC
Agreement; provided however no Units may be transferred (i) to a direct
competitor of the Company as determined by the Board or (ii) for
consideration other than cash.

 

 

(b)                                 Company’s
Right of First Refusal. Before any Vested Units (or any securities into
which such Units may be converted) held by Participant or any permitted
transferee (each, a “Holder”) may be
sold , pledged, assigned, hypothecated, transferred or otherwise disposed of
(including transfer by gift or operation of law, collectively a “Transfer” or “Transferred”),
the Company or its assignee(s) shall have a right of first refusal to purchase
the Vested Units on the terms and conditions set forth in this Section (the “Right of First Refusal”).

 

(i)                                     Notice
of Proposed Transfer. The Holder of the Vested Units shall deliver to the
Company a written notice (the “Notice”)
stating:  (i) the Holder’s bona fide
intention to sell or otherwise Transfer such Units; (ii) the name of each
proposed transferee (“Proposed Transferee”);
(iii) the Vested Units to be Transferred to each Proposed Transferee; and
(iv) the bona fide cash price for which the Holder proposes to Transfer
the Units (the “Offered Price”), and the Holder
shall offer the Units at the Offered Price to the Company or its assignee(s).

 

(ii)                                  Exercise
of Right of First Refusal. Within thirty (30) days after receipt of the
Notice, the Company and/or its assignee(s) may elect in writing to purchase
all, but not less than all, of the Units proposed to be Transferred to any one
or more of the Proposed Transferees. The purchase price will be determined in
accordance with subsection (iii) below.

 

(iii)                               Purchase Price. The
purchase price (“Purchase Price”) for the Vested
Units repurchased under this Section shall be the Offered Price.

 

(iv)                              Payment.
Payment of the Purchase Price shall be made, at the option of the Company or
its assignee(s), in cash (by check), by cancellation of all or a portion of any
outstanding indebtedness of the Holder to the Company (or, in the case of
repurchase by an assignee, to the assignee), or by any combination thereof
within thirty (30) days after receipt of the Notice or in the manner and at the
times set forth in the Notice.

 

(v)                                 Holder’s
Right to Transfer. If all of the Vested Units proposed in the Notice to be
transferred to a given Proposed Transferee are not purchased by the Company
and/or its assignee(s) as provided in this Section, then subject to any rights
of first refusal and other restrictions on transfer contained in the LLC
Agreement, the Holder may sell or otherwise Transfer such Units to that
Proposed Transferee at the Offered Price or at a higher price, provided that
such sale or other Transfer is consummated within one hundred twenty (120) days
after the date of the Notice and provided further that any such sale or other Transfer
is effected in accordance with any applicable securities laws and the Proposed
Transferee agrees in writing that the provisions of this Section and the
Restricted Unit Agreement, as applicable, shall continue to apply to the Vested
Units in the hands of such Proposed Transferee. If the Units described in the
Notice are not Transferred to the Proposed Transferee within such period, a new
Notice shall be given to the Company, and the Company and/or its assignees
shall again be offered the Right of First Refusal as provided herein before any
Vested Units held by the Holder may be sold or otherwise Transferred. The
Company’s Right of First Refusal as contained herein shall be in addition to
and arise prior to any rights of first refusal contained in the LLC Agreement.

 

 

(c)                                  Exception
for Certain Family Transfers. Anything to the contrary contained in this
Section notwithstanding, the Transfer of any or all of the Restricted Units
during the Participant’s lifetime or on the Participant’s death by will or
intestacy to the Participant’s Immediate Family shall be exempt from the Right
of First Refusal. Participant’s Immediate Family includes Participant’s and
Participant’s Immediate Family’s trusts, foundations, partnerships and other
family entities. In such case, the transferee or other recipient shall receive
and hold the Restricted Units so Transferred subject to the provisions of this
Section, Section 4, Section 7 and the Restricted Unit Agreement, as applicable,
and there shall be no further Transfer of such Restricted Units except in
accordance with the terms of this Section.

 

(d)                                 Termination
of Right of First Refusal. The Right of First Refusal shall terminate as to
all Restricted Units (and any securities of the Company in which such
Restricted Units may be converted) ninety (90) days after a sale of common
stock of the Company to the general public pursuant to a registration statement
filed with and declared effective by the Securities and Exchange Commission
under the Securities Act of 1933, as amended (a “Public
Offering”).

 

7.                                       Company
Call Right.

 

(a)                                  If
Participant ceases to be a Service Provider for any reason, the Company shall
have the right to purchase any or all of the Vested Units (or any securities
into which such Units may be converted) then owned by the Holder of such Vested
Units at a price equal to the Fair Market Value of the Vested Units on the date
on which the Participant ceases to be a Service Provider (the “Call Right”).

 

(b)                                 The
Company may exercise the Company Call Right by delivering personally or by
registered mail to Holder within ninety (90) days of the date on which
Participant ceases to be a Service Provider, a notice in writing indicating the
Company’s intention to exercise the Company Call Right and setting forth a date
for closing not later than thirty (30) days from the mailing of such notice. The
closing shall take place at the Company’s office.

 

(c)                                  At
its option, the Company may elect to make payment for the Vested Units to a
bank selected by the Company. The Company shall avail itself of this option by
a notice in writing to Holder stating the name and address of the bank, date of
closing, and waiving the closing at the Company’s office.

 

(d)                                 If
the Company does not elect to exercise the Company Call Right conferred above
by giving the requisite notice within ninety (90) days following the date on
which Participant ceases to be a Service Provider, the Company Call Right shall
terminate.

 

(e)                                  The
Company Call Right shall terminate as to all Units (or any securities into which
such Units may be converted) ninety (90) days after a Public Offering.

 

8.                                       Lock-Up
Period. Participant hereby agrees that if so requested by the Company (any
successor thereto) or any representative of the underwriters (the “Managing Underwriter”) in connection with any registration
of the offering of any securities of the Company under the Securities Act of
1933, as amended (the “Securities Act”),
Participant shall not sell or otherwise

 

 

transfer any Units (or any securities of the Company in which such
Units may be converted) or other securities of the Company during the 180-day
period (or such longer period as may be requested in writing by the Managing
Underwriter and agreed to in writing by the Company) (the “Market
Standoff Period”) following the effective date of a registration
statement of the Company filed under the Securities Act; provided,
however, that such restriction shall apply only to the first
registration statement of the Company to become effective under the Securities
Act that includes securities to be sold on behalf of the Company to the public
in an underwritten public offering under the Securities Act. The Company may
impose stop-transfer instructions with respect to securities subject to the
foregoing restrictions until the end of such Market Standoff Period.

 

9.                                       Refusal
to Transfer. The Company shall not be required (i) to transfer on its
books any Restricted Units that have been sold or otherwise transferred in
violation of any of the provisions of this Agreement or the LLC Agreement or
(ii) to treat as owner of such Restricted Units or to accord the right to
vote or pay dividends to any Participant or other transferee to whom such
Restricted Units shall have been so transferred.

 

10.                                 Successors
and Assigns. The Company may assign any of its rights under this Agreement
to single or multiple assignees, and this Agreement shall inure to the benefit
of the successors and assigns of the Company. Subject to the restrictions on
transfer herein set forth, this Agreement shall be binding upon Participant and
his or her heirs, executors, administrators, successors and assigns.

 

11.                                 Arbitration.
Except as provided in Section 19 hereof, in the event that there shall be
a dispute among the parties arising out of or relating to this Restricted Unit
Agreement, or the breach thereof, the parties agree that such dispute shall be
resolved by final and binding arbitration in Newark, New Jersey, administered
by the American Arbitration Association (the “AAA”), in accordance with
AAA’s Commercial Arbitration Rules, to which shall be added the provisions of
the Federal Rules of Civil Procedure relating to the Production of Evidence,
and the parties agree that the arbitrators may impose sanctions in their
discretion to enforce compliance with discovery and other obligations. Such
arbitration shall be presided over by a single arbitrator. If the Participant,
on the one hand, and the Company, on the other hand, do not agree on the
arbitrator within fifteen (15) days after a party requests arbitration, the arbitrator
shall be selected by the Executive and the Company from a list of five (5)
potential arbitrators provided by AAA. Such list shall be provided within ten
(10) days of the request of any party for arbitration. The party requesting
arbitration shall delete one name from the list. The other party shall delete
one name from the list. This process shall then be repeated in the same order,
and the last remaining person on the list shall be the arbitrator. This
selection process shall take place within the two (2) business days following
both parties’ receipt of the list of five (5) potential arbitrators. Hearings
in the arbitration proceedings shall commence within twenty (20) days of the
selection of the arbitrator or as soon thereafter as the arbitrator is
available. The arbitrator shall deliver his or her opinion within twenty (20)
days after the completion of the arbitration hearings. The arbitrator’s
decision shall be final and binding upon the parties, and may be entered and
enforced in any court of competent jurisdiction by either of the parties. The
arbitrator shall have the power to grant temporary, preliminary and permanent
relief, including without limitation, injunctive relief and specific
performance. Unless otherwise ordered by the

 

 

arbitrator pursuant to this Agreement, the arbitrator’s fees and
expenses shall be shared equally by the parties.

 

12.                                 Notices.
Any notice required or permitted hereunder shall be given in writing and shall
be deemed effectively given upon personal delivery or upon deposit in the
United States mail by certified mail, with postage and fees prepaid, addressed
to the other party at its address as shown below beneath its signature, or to
such other address as such party may designate in writing from time to time to
the other party. Participant further agrees to notify the Company upon any
change in the residence address indicated below.

 

13.                                 Further
Instruments. The parties agree to execute such further instruments and to
take such further action as may be reasonably necessary to carry out the
purposes and intent of this Agreement.

 

14.                                 Entire
Agreement. The Plan and LLC Agreement are incorporated herein by reference.
This Agreement, the Plan, the Investment Representation Statement and the LLC
Agreement constitute the entire agreement of the parties and supersede in their
entirety all prior undertakings and agreements of the Company and Participant
with respect to the subject matter hereof.

 

15.                                 Spousal
Consent. As a further condition to the Company’s and Participant’s
obligations under this Agreement, the spouse of the Participant, if any, shall
execute and deliver to the Company the Consent of Spouse attached hereto as Exhibit B.

 

16.                                 Tax
Consultation.

 

(a)                                  Representations.
Participant understands that he or she may suffer adverse tax consequences as a
result of his or her purchase or disposition of the Restricted Units. Participant
has reviewed with his or her own tax advisors the federal, state, local and
foreign tax consequences of this investment and the transactions contemplated
by this Agreement. Participant is relying solely on such advisors and not on
any statements or representations of the Company or any of its agents. Participant
understands that he or she (and not the Company) shall be responsible for his
or her own tax liability that may arise as a result of this investment or the
transactions contemplated by this Agreement.

 

(b)                                 Section
83(b) Election. Participant hereby acknowledges that he or she has been
informed that, with respect to the purchase of Restricted Units, unless an
election is filed by the Participant with the Internal Revenue Service and, if
necessary, the proper state taxing authorities, within thirty (30) days
of the purchase of the Restricted Units, electing pursuant to Section 83(b) of
the Code (and similar state tax provisions if applicable) to be taxed currently
on any difference between the Grant Price of the Restricted Units and their
Fair Market Value on the date of purchase, there will be a recognition of
taxable income to the Participant, measured by the excess, if any, of the Fair
Market Value of the Restricted Units, at the time the Repurchase lapses over
the purchase price for the Restricted Units. Participant represents that
Participant has consulted any tax consultant(s) Participant deems advisable in
connection with the purchase of the Restricted Units or the filing of the
election under Section 83(b) and similar tax provisions. PARTICIPANT ACKNOWLEDGES
THAT IT IS HIS OR HER SOLE

 

 

RESPONSIBILITY AND NOT THE COMPANY’S TO FILE TIMELY THE ELECTION UNDER
SECTION 83(b), EVEN IF PARTICIPANT REQUESTS THE COMPANY OR ITS REPRESENTATIVE
TO MAKE THIS FILING ON HIS OR HER BEHALF.

 

17.                                 Governing
Law. This Restricted Unit Agreement shall be governed by and construed in
accordance with the laws of the State of Delaware applicable to contracts
executed in and to be performed entirely within that state. The parties
irrevocably agree that all actions to enforce an arbitrator’s decision pursuant
to Section 11 of this Restricted Unit Agreement shall be instituted and
litigated only in federal, state or local courts sitting in Newark, New Jersey
and each of such parties hereby consents to the exclusive jurisdiction and
venue of such court and waives any objection based on forum non conveniens.

 

18.                                 WAIVER OF JURY TRIAL. THE PARTIES
HEREBY WAIVE, RELEASE AND RELINQUISH ANY AND ALL RIGHTS THEY MAY HAVE TO A
TRIAL BY JURY WITH RESPECT TO ANY ACTIONS TO ENFORCE AN ARBITRATOR’S DECISION
PURSUANT TO SECTION 11 OF THIS RESTRICTED UNIT AGREEMENT.

 

19.                                 Severability.
Should any provision of this Restricted Unit Agreement be determined by a court
of law to be illegal or unenforceable, the other provisions shall nevertheless
remain effective and shall remain enforceable.

 

20.                                 No
Right to Employment. PARTICIPANT ACKNOWLEDGES AND AGREES THAT THE
RESTRICTED UNITS HEREIN GRANTED CONTINUE TO VEST ONLY FOR PERIODS DETERMINED
WITH REFERENCE TO THE PERIOD OF CONTINUED CONSULTANCY OR EMPLOYMENT AT THE WILL
OF THE COMPANY (NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED OR ACQUIRING
UNITS HEREUNDER). PARTICIPANT FURTHER ACKNOWLEDGES AND AGREES THAT NOTHING IN
THIS AGREEMENT, NOR IN THE COMPANY’S EQUITY INCENTIVE PLAN WHICH IS
INCORPORATED HEREIN BY REFERENCE, SHALL CONFER UPON PARTICIPANT ANY RIGHT WITH
RESPECT TO CONTINUATION OF EMPLOYMENT OR CONSULTANCY BY THE COMPANY, NOR SHALL
IT INTERFERE IN ANY WAY WITH PARTICIPANT’S RIGHT OR THE COMPANY’S RIGHT TO
TERMINATE PARTICIPANT’S EMPLOYMENT OR CONSULTANCY AT ANY TIME, WITH OR WITHOUT
CAUSE OR NOTICE.

 

21.                                 Representations
of Participant. Participant acknowledges that he or she has received, read
and understood the Plan, the LLC Agreement, this Restricted Unit Agreement and
is familiar with their terms and provisions. Participant hereby agrees to
accept as binding, conclusive and final all decisions or interpretations of the
Committee upon any questions arising under this Agreement.

 

[Signature Page to Follow]

 

 

IN
WITNESS WHEREOF, this Agreement is deemed made as of the date first set forth
above.

 

 

	
   

  	
  RELIANT
  PHARMACEUTICALS, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  110 Allen Road

  
	
   

  	
   

  	
  Liberty Corner, New
  Jersey 07938

  
	
   

  	
   

  
	
   

  	
  PARTICIPANT

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Ernest Mario

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  555 Byron Street, #401

  
	
   

  	
   

  	
  Palo Alto, California
  94301

  
						

 

 

INVESTMENT REPRESENTATION STATEMENT

 

 

	
  PARTICIPANT

  	
  :

  	
  ERNEST MARIO

  
	
   

  	
   

  	
   

  
	
  COMPANY

  	
  :

  	
  RELIANT
  PHARMACEUTICALS, LLC.

  
	
   

  	
   

  	
   

  
	
  SECURITY

  	
  :

  	
  CLASS ONE COMMON UNITS

  
	
   

  	
   

  	
   

  
	
  AMOUNT

  	
  :

  	
  274,968 UNITS

  
	
   

  	
   

  	
   

  
	
  DATE

  	
  :

  	
  June 25, 2003

  

 

In
connection with the purchase of the above-listed Securities, the undersigned
Participant represents to the Company the following:

 

(a)                                  Participant
is aware of the Company’s business affairs and financial condition and has
acquired sufficient information about the Company to reach an informed and
knowledgeable decision to acquire the Securities. Participant has received and
read the financial information provided by the Company and has had an
opportunity to discuss the Company’s business, management and financial affairs
with the managers, officers and other management personnel of the Company. Participant
has also had the opportunity to ask questions of and receive answers from, the
Company and its management regarding the risks, terms and conditions of this
investment.

 

(b)                                 Participant
(i) has such knowledge and experience in financial and business matters
that it is capable of evaluating the merits and risks of its investment in
these Securities, (ii) is able to bear the complete loss of his investment
in these Securities, and (iii) is an “accredited investor” as that term is
defined in Rule 501(a)(3) under the Securities Act of 1933, as amended (the “Securities Act”).

 

(c)                                  Participant
is acquiring these Securities for investment purposes for Participant’s own
account only and not with a view to distributing or resale of all or any part
thereof in any transaction which would constitute a “distribution”
within the meaning of the Securities Act. Participant acknowledges that none of
the Securities have been registered under the Securities Act and, except as may
be specifically agreed to by the Company, the Company is under no obligation to
file a registration statement with the Securities and Exchange Commission with
respect to all or any part of such Securities.

 

Participant
acknowledges and understands that the Securities constitute “restricted securities” under the Securities Act and have not
been registered under the Securities Act in reliance upon a specific exemption
therefrom, which exemption depends upon, among other things, the bona fide
nature of Participant’s investment intent as expressed herein. In this
connection, Participant understands that, in the view of the Securities and
Exchange Commission, the statutory basis for such exemption may be unavailable
if Participant’s representation was predicated solely upon a present intention
to hold these Securities for the

 

 

minimum capital gains period specified under tax
statutes, for a deferred sale, for or until an increase or decrease in the
market price of the Securities, or for a period of one year or any other fixed
period in the future. Participant further understands that the Securities must
be held indefinitely unless they are subsequently registered under the
Securities Act or an exemption from such registration is available. Participant
has been advised or is aware of the provisions of Rule 144 promulgated under
the Securities Act, which permits limited resale of securities purchased in a
private placement subject to the satisfaction of certain conditions, including,
among other things:  the availability of
certain current public information about the Company, the resale occurring not
less than one year after a party has purchased and paid for the security to be
sold, the sale being through an unsolicited “broker’s
transaction” or in transactions directly with a market maker (as
said term is defined under the Securities Exchange Act of 1934, as amended) and
the number of shares being sold during any three-month period not exceeding
specified limitations.

 

	
   

  	
  Signature of
  Participant:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Ernest Mario

  
	
   

  	
   

  
	
   

  	
  Date:

  	
  June 25, 2003

  	
   

  
				

 

 

CONSENT OF SPOUSE

 

I,
Mildred Martha Mario, spouse of Ernest Mario, have read and approve the
foregoing Restricted Unit Agreement. In consideration of granting of the right
to my spouse to purchase Class One Common Units of Reliant Pharmaceuticals, LLC
as set forth in the Agreement, I hereby appoint my spouse as my
attorney-in-fact in respect to the exercise of any rights under the Agreement
and agree to be bound by the provisions of the Agreement insofar as I may have
any rights in said Agreement or any shares issued pursuant thereto under the
community property laws or similar laws relating to marital property in effect
in the state of our residence as of the date of the signing of the foregoing
Agreement.

 

 

	
  Dated: June 25, 2003

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Mildred Martha MarioEXHIBIT 10.21

 

RELIANT PHARMACEUTICALS, LLC.

 

EQUITY INCENTIVE PLAN

 

RESTRICTED UNIT AGREEMENT

 

Unless
otherwise specified herein, all capitalized terms shall have the same meanings
as set forth in the Reliant Pharmaceuticals, LLC Equity Incentive Plan (the “Plan”).

 

I.                                         NOTICE OF GRANT

 

Ernest Mario

555 Byron Street, #401

Palo Alto, California 94301

 

Facsimile:  (650) 473-6948

 

You (“Participant”) are hereby granted Class One Common Units (the
“Units”) in the Company, subject to the
terms and conditions of the Plan and this Restricted Unit Agreement. The terms
of your grant are set forth below:

 

	
  Date of Grant:

  	
   

  	
  December 31, 2003

  
	
   

  	
   

  	
   

  
	
  Vesting Commencement
  Date:

  	
   

  	
  April 29, 2003

  
	
   

  	
   

  	
   

  
	
  Grant Price per Unit:

  	
   

  	
  $0.01

  
	
   

  	
   

  	
   

  
	
  Units Granted:

  	
   

  	
  137,256

  
	
   

  	
   

  	
   

  
	
  Total Grant Price:

  	
   

  	
  $1,372.56

  

 

Vesting
Schedule:

 

The
Units subject to this Restricted Unit Agreement (the “Restricted Units”) shall vest and be
released from Repurchase (as defined below), according to the following
schedule:

 

Participant
shall be fully vested in 45,752 Units on the date hereof. Participant shall
vest in 45,752 Units on each anniversary of the Vesting Commencement Date, so
that all of the Restricted Units shall be vested on the second anniversary of
the Vesting Commencement Date; provided, however,
that Participant shall be 100% vested in all of the Restricted Units upon the
effective date of a Change in Control (as defined below).

 

Restricted
Units shall vest only for so long as Participant remains a Service Provider.

 

 

“Change of Control” shall mean (i) the sale, lease,
exchange, license or other disposition of all or substantially all of Company’s
assets in one transaction or series of related transactions; (ii) a merger
or consolidation as a result of which the holders of Company’s issued and
outstanding voting securities immediately before such transaction own or
control less than a majority of the voting securities of the continuing or
surviving entity immediately after such transaction and/or (iii) the
acquisition (in one or more transactions) by any person or persons acting
together or constituting a “group” under Section 13(d) of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”),
together with any affiliates thereof (other than members of the Company as of
the date hereof and their respective affiliates) of beneficial ownership (as
defined in Rule 13d-3 under such Exchange Act) or control, directly or
indirectly, of at least eighty percent (80%) of the total voting power of all
classes of securities entitled to vote generally in the election of the Company’s
board of managers or similar governing body; provided that for the purposes of
the immediately preceding clause (iii) neither a public offering of Company’s
securities nor any financing transaction or series of financing transactions
shall constitute a Change of Control.

 

II.                                     AGREEMENT

 

1.                                       Grant
of Restricted Units. The Company hereby grants to the Participant the right
to purchase the number of Restricted Units set forth in the Notice of Grant, at
the purchase price set forth in the Notice of Grant (the “Grant Price”).
Participant has ten (10) days from the Date of Grant set forth in the Notice of
Grant to exercise his/her right to purchase the Restricted Units and deliver
the Purchase Price. If Participant does not so exercise his/her right to
purchase the Restricted Units, then this Agreement shall be null and void and
Participant shall have no further rights in the Restricted Units.

 

Notwithstanding
anything to the contrary anywhere else in this Restricted Unit Agreement, this
grant of Restricted Units is subject to the terms, definitions and provisions
of the Plan, the Employment Agreement and the LLC Agreement which are
incorporated herein by reference.

 

The
Company intends to convert from a limited liability company to a C-Corporation
effective on or about March 31, 2004. Upon such conversion all references in
this Agreement to Restricted Units shall refer to common stock into which the
units will convert. Additionally, upon such conversion all references to LLC
Agreement shall refer to any Stockholders Agreement which may be entered into
in connection with such conversion.

 

2.                                       Purchase
and Method of Payment. Payment of the Grant Price shall be by any of the
following, or a combination thereof, at the election of the Participant:

 

(a)                                  cash;

 

(b)                                 check;
or

 

(c)                                  with
the consent of the Company’s Board of Managers or committee thereof that is
responsible for the administration of the Plan (the “Administrator”),
property of any kind which constitutes good and valuable consideration
(including the surrender of underlying Units).

 

2

 

Participant
shall, deliver the Grant Price to the Company along with his or her Investment
Representation Statement in the form attached hereto as Exhibit A.

 

3.                                       Vesting.
Participant shall vest in the Restricted Units as set forth in the Notice of
Grant. For purposes of this Restricted Unit Agreement, the Restricted Units
shall vest based upon Participant’s continued status as a Service Provider. Upon
termination of Participant’s status as a Service Provider, the unvested portion
of the Restricted Units (“Unvested Units”)
shall be subject to Repurchase. The vested portion of the Restricted Units (“Vested Units”) shall not be subject to Repurchase.

 

4.                                       Repurchase.

 

(a)                                  If
Participant ceases to be a Service Provider for any reason, the Company shall
purchase from the Holder thereof, all of the Participant’s Unvested Units as of
the date on which Participant ceases to be a Service Provider (the “Repurchase”) at the lesser of (i) the Grant Price or
(ii) the Fair Market Value thereof (the “Repurchase
Price”). The Company shall deliver the Repurchase Price, to the
Holder by check, cash or wire transfer within ninety (90) days of the date on
which Participant ceases to be a Service Provider.

 

(b)                                 The
Unvested Units shall be released from Repurchase in accordance with the Vesting
Schedule set forth in the Notice of Grant until all Units are released from
Repurchase.

 

5.                                       Rights
and Obligations as a Member. Subject to Repurchase the Participant shall
have all rights of a Common Holder with respect to the Restricted Units as
provided in the LLC Agreement. By executing this Agreement, Participant,
without further action on his or her part, agrees to be deemed a party to, a
signatory of and bound by the LLC Agreement, and the Restricted Units shall be
subject to such rights and restrictions as contained therein. Participant shall
enjoy rights as a Common Holder and shall be subject to all of the limitations,
restrictions and obligations contained in the LLC Agreement as a Common Holder,
until such time as Holder disposes of the Units or the Company and/or its
assignee(s) exercises the Right of First Refusal or Rights of Repurchase
provided in this Agreement or otherwise in the LLC Agreement. Upon such
exercise, Participant shall have no further rights as a holder of the Units so
purchased except the right to receive payment for the Units so purchased in
accordance with the provisions of this Agreement and the LLC Agreement. This
Agreement shall not affect in any way the ownership, voting rights or other
rights or duties of Participant, except as specifically provided herein.

 

6.                                       Participant’s
Rights to Transfer Units.

 

(a)                                  Transfer.
Participant may transfer the Restricted Units (or any securities into which
such Units may be converted), subject only to the restrictions contained in
this Section 6 and the LLC Agreement; provided however no Restricted Units may
be transferred (i) to a direct competitor of the Company as determined by
the Board or (ii) for consideration other than cash.

 

(b)                                 Company’s
Right of First Refusal. Before any Units (or any securities into which such
Restricted Units may be converted) held by Participant or any permitted

 

3

 

transferee (each, a “Holder”) may be
sold , pledged, assigned, hypothecated, transferred or otherwise disposed of
(including transfer by gift or operation of law, collectively a “Transfer” or “Transferred”),
the Company or its assignee(s) shall have a right of first refusal to purchase
the Restricted Units on the terms and conditions set forth in this Section (the
“Right of First Refusal”).

 

(i)                                     Notice
of Proposed Transfer. The Holder of the Restricted Units shall deliver to
the Company a written notice (the “Notice”)
stating:  (i) the Holder’s bona fide
intention to sell or otherwise Transfer such Restricted Units; (ii) the
name of each proposed transferee (“Proposed Transferee”);
(iii) the Restricted Units to be Transferred to each Proposed Transferee;
and (iv) the bona fide cash price for which the Holder proposes to
Transfer the Restricted Units (the “Offered Price”),
and the Holder shall offer the Restricted Units at the Offered Price to the
Company or its assignee(s).

 

(ii)                                  Exercise
of Right of First Refusal. Within thirty (30) days after receipt of the
Notice, the Company and/or its assignee(s) may elect in writing to purchase
all, but not less than all, of the Restricted Units proposed to be Transferred
to any one or more of the Proposed Transferees. The purchase price will be
determined in accordance with subsection (iii) below.

 

(iii)                               Purchase Price. The
purchase price (“Purchase Price”) for the
Restricted Units repurchased under this Section shall be the Offered Price.

 

(iv)                              Payment.
Payment of the Purchase Price shall be made, at the option of the Company or
its assignee(s), in cash (by check), by cancellation of all or a portion of any
outstanding indebtedness of the Holder to the Company (or, in the case of
repurchase by an assignee, to the assignee), or by any combination thereof
within thirty (30) days after receipt of the Notice or in the manner and at the
times set forth in the Notice.

 

(v)                                 Holder’s
Right to Transfer. If all of the Restricted Units proposed in the Notice to
be transferred to a given Proposed Transferee are not purchased by the Company
and/or its assignee(s) as provided in this Section, then subject to any rights
of first refusal and other restrictions on transfer contained in the LLC
Agreement, the Holder may sell or otherwise Transfer such Restricted Units to
that Proposed Transferee at the Offered Price or at a higher price, provided
that such sale or other Transfer is consummated within one hundred twenty (120)
days after the date of the Notice and provided further that any such sale or
other Transfer is effected in accordance with any applicable securities laws
and the Proposed Transferee agrees in writing that the provisions of this
Section and the Restricted Unit Agreement, as applicable, shall continue to apply
to the Restricted Units in the hands of such Proposed Transferee. If the
Restricted Units described in the Notice are not Transferred to the Proposed
Transferee within such period, a new Notice shall be given to the Company, and
the Company and/or its assignees shall again be offered the Right of First
Refusal as provided herein before any Restricted Units held by the Holder may
be sold or otherwise Transferred. The Company’s Right of First Refusal as
contained herein shall be in addition to and arise prior to any rights of first
refusal contained in the LLC Agreement.

 

4

 

(c)                                  Exception
for Certain Family Transfers. Anything to the contrary contained in this
Section notwithstanding, the Transfer of any or all of the Restricted Units
during the Participant’s lifetime or on the Participant’s death by will or
intestacy to the Participant’s Immediate Family shall be exempt from the Right
of First Refusal. Participant’s Immediate Family includes Participant’s and
Participant’s Immediate Family’s trusts, foundations, partnerships and other
family entities. In such case, the transferee or other recipient shall receive
and hold the Restricted Units so Transferred subject to the provisions of this
Section, Section 4, Section 7 and the Restricted Unit Agreement, as applicable,
and there shall be no further Transfer of such Restricted Units except in
accordance with the terms of this Section.

 

(d)                                 Termination
of Right of First Refusal. The Right of First Refusal shall terminate as to
all Restricted Units (and any securities of the Company in which such
Restricted Units may be converted) ninety (90) days after a sale of common
stock of the Company to the general public pursuant to a registration statement
filed with and declared effective by the Securities and Exchange Commission
under the Securities Act of 1933, as amended (a “Public
Offering”).

 

7.                                       Company
Call Right.

 

(a)                                  If
Participant ceases to be a Service Provider for any reason, the Company shall
have the right to purchase any or all of the Vested Units (or any securities
into which such Units may be converted) then owned by the Holder of such Vested
Units at a price equal to the Fair Market Value of the Vested Units on the date
on which the Participant ceases to be a Service Provider (the “Call Right”).

 

(b)                                 The
Company may exercise the Company Call Right by delivering personally or by
registered mail to Holder within ninety (90) days of the date on which
Participant ceases to be a Service Provider, a notice in writing indicating the
Company’s intention to exercise the Company Call Right and setting forth a date
for closing not later than thirty (30) days from the mailing of such notice. The
closing shall take place at the Company’s office.

 

(c)                                  At
its option, the Company may elect to make payment for the Vested Units to a
bank selected by the Company. The Company shall avail itself of this option by
a notice in writing to Holder stating the name and address of the bank, date of
closing, and waiving the closing at the Company’s office.

 

(d)                                 If
the Company does not elect to exercise the Company Call Right conferred above
by giving the requisite notice within ninety (90) days following the date on
which Participant ceases to be a Service Provider, the Company Call Right shall
terminate.

 

(e)                                  The
Company Call Right shall terminate as to all Units (or any securities into
which such Units may be converted) ninety (90) days after a Public Offering.

 

8.                                       Lock-Up
Period. Participant hereby agrees that if so requested by the Company (any
successor thereto) or any representative of the underwriters (the “Managing Underwriter”) in connection with any registration
of the offering of any securities of the Company under the Securities Act of
1933, as amended (the “Securities Act”),
Participant shall not sell or otherwise

 

5

 

transfer any Units (or any securities of the Company in which such
Units may be converted) or other securities of the Company during the 180-day
period (or such longer period as may be requested in writing by the Managing
Underwriter and agreed to in writing by the Company) (the “Market
Standoff Period”) following the effective date of a registration
statement of the Company filed under the Securities Act; provided,
however, that such restriction shall apply only to the first
registration statement of the Company to become effective under the Securities
Act that includes securities to be sold on behalf of the Company to the public
in an underwritten public offering under the Securities Act. The Company may
impose stop-transfer instructions with respect to securities subject to the
foregoing restrictions until the end of such Market Standoff Period.

 

9.                                       Refusal
to Transfer. The Company shall not be required (i) to transfer on its
books any Restricted Units that have been sold or otherwise transferred in
violation of any of the provisions of this Agreement or the LLC Agreement or
(ii) to treat as owner of such Restricted Units or to accord the right to
vote or pay dividends to any Participant or other transferee to whom such
Restricted Units shall have been so transferred.

 

10.                                 Successors
and Assigns. The Company may assign any of its rights under this Agreement
to single or multiple assignees, and this Agreement shall inure to the benefit
of the successors and assigns of the Company. Subject to the restrictions on
transfer herein set forth, this Agreement shall be binding upon Participant and
his or her heirs, executors, administrators, successors and assigns.

 

11.                                 Arbitration.
Except as provided in Section 19 hereof, in the event that there shall be
a dispute among the parties arising out of or relating to this Restricted Unit
Agreement, or the breach thereof, the parties agree that such dispute shall be
resolved by final and binding arbitration in Newark, New Jersey, administered
by the American Arbitration Association (the “AAA”), in accordance with
AAA’s Commercial Arbitration Rules, to which shall be added the provisions of
the Federal Rules of Civil Procedure relating to the Production of Evidence,
and the parties agree that the arbitrators may impose sanctions in their
discretion to enforce compliance with discovery and other obligations. Such
arbitration shall be presided over by a single arbitrator. If the Participant, on
the one hand, and the Company, on the other hand, do not agree on the
arbitrator within fifteen (15) days after a party requests arbitration, the
arbitrator shall be selected by the Executive and the Company from a list of
five (5) potential arbitrators provided by AAA. Such list shall be provided
within ten (10) days of the request of any party for arbitration. The party
requesting arbitration shall delete one name from the list. The other party
shall delete one name from the list. This process shall then be repeated in the
same order, and the last remaining person on the list shall be the arbitrator. This
selection process shall take place within the two (2) business days following
both parties’ receipt of the list of five (5) potential arbitrators. Hearings
in the arbitration proceedings shall commence within twenty (20) days of the
selection of the arbitrator or as soon thereafter as the arbitrator is
available. The arbitrator shall deliver his or her opinion within twenty (20)
days after the completion of the arbitration hearings. The arbitrator’s
decision shall be final and binding upon the parties, and may be entered and
enforced in any court of competent jurisdiction by either of the parties. The
arbitrator shall have the power to grant temporary, preliminary and permanent
relief, including without limitation, injunctive relief and specific
performance. Unless otherwise ordered by the

 

6

 

arbitrator pursuant to this Agreement, the arbitrator’s fees and expenses
shall be shared equally by the parties.

 

12.                                 Notices.
Any notice required or permitted hereunder shall be given in writing and shall
be deemed effectively given upon personal delivery or upon deposit in the
United States mail by certified mail, with postage and fees prepaid, addressed
to the other party at its address as shown below beneath its signature, or to
such other address as such party may designate in writing from time to time to
the other party. Participant further agrees to notify the Company upon any
change in the residence address indicated below.

 

13.                                 Further
Instruments. The parties agree to execute such further instruments and to
take such further action as may be reasonably necessary to carry out the
purposes and intent of this Agreement.

 

14.                                 Entire
Agreement. The Plan and LLC Agreement are incorporated herein by reference.
This Agreement, the Plan, the Investment Representation Statement and the LLC
Agreement constitute the entire agreement of the parties and supersede in their
entirety all prior undertakings and agreements of the Company and Participant
with respect to the subject matter hereof.

 

15.                                 Spousal
Consent. As a further condition to the Company’s and Participant’s
obligations under this Agreement, the spouse of the Participant, if any, shall
execute and deliver to the Company the Consent of Spouse attached hereto as Exhibit B.

 

16.                                 Tax
Consultation.

 

Participant
understands that he or she may suffer adverse tax consequences as a result of
his or her purchase or disposition of the Restricted Units. Participant has
reviewed with his or her own tax advisors the federal, state, local and foreign
tax consequences of this investment and the transactions contemplated by this
Agreement. Participant is relying solely on such advisors and not on any
statements or representations of the Company or any of its agents. Participant
understands that he or she (and not the Company) shall be responsible for his
or her own tax liability that may arise as a result of this investment or the
transactions contemplated by this Agreement.

 

17.                                 Governing
Law. This Restricted Unit Agreement shall be governed by and construed in
accordance with the laws of the State of Delaware applicable to contracts
executed in and to be performed entirely within that state. The parties
irrevocably agree that all actions to enforce an arbitrator’s decision pursuant
to Section 11 of this Restricted Unit Agreement shall be instituted and
litigated only in federal, state or local courts sitting in Newark, New Jersey
and each of such parties hereby consents to the exclusive jurisdiction and
venue of such court and waives any objection based on forum non conveniens.

 

18.                                 WAIVER OF JURY TRIAL. THE PARTIES
HEREBY WAIVE, RELEASE AND RELINQUISH ANY AND ALL RIGHTS THEY MAY HAVE TO A
TRIAL BY JURY WITH RESPECT TO ANY ACTIONS TO ENFORCE AN ARBITRATOR’S DECISION
PURSUANT TO SECTION 11 OF THIS RESTRICTED UNIT AGREEMENT.

 

7

 

19.                                 Severability.
Should any provision of this Restricted Unit Agreement be determined by a court
of law to be illegal or unenforceable, the other provisions shall nevertheless
remain effective and shall remain enforceable.

 

20.                                 No
Right to Employment. PARTICIPANT ACKNOWLEDGES AND AGREES THAT THE
RESTRICTED UNITS HEREIN GRANTED CONTINUE TO VEST ONLY FOR PERIODS DETERMINED
WITH REFERENCE TO THE PERIOD OF CONTINUED CONSULTANCY OR EMPLOYMENT AT THE WILL
OF THE COMPANY (NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED OR ACQUIRING
UNITS HEREUNDER). PARTICIPANT FURTHER ACKNOWLEDGES AND AGREES THAT NOTHING IN
THIS AGREEMENT, NOR IN THE COMPANY’S EQUITY INCENTIVE PLAN WHICH IS
INCORPORATED HEREIN BY REFERENCE, SHALL CONFER UPON PARTICIPANT ANY RIGHT WITH
RESPECT TO CONTINUATION OF EMPLOYMENT OR CONSULTANCY BY THE COMPANY, NOR SHALL
IT INTERFERE IN ANY WAY WITH PARTICIPANT’S RIGHT OR THE COMPANY’S RIGHT TO
TERMINATE PARTICIPANT’S EMPLOYMENT OR CONSULTANCY AT ANY TIME, WITH OR WITHOUT
CAUSE OR NOTICE.

 

21.                                 Representations
of Participant. Participant acknowledges that he or she has received, read
and understood the Plan, the LLC Agreement, this Restricted Unit Agreement and
is familiar with their terms and provisions. Participant hereby agrees to
accept as binding, conclusive and final all decisions or interpretations of the
Committee upon any questions arising under this Agreement.

 

[Signature Page to Follow]

 

8

 

IN
WITNESS WHEREOF, this Agreement is deemed made as of the date first set forth
above.

 

 

	
   

  	
  RELIANT
  PHARMACEUTICALS, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  110 Allen Road

  
	
   

  	
   

  	
  Liberty Corner, New Jersey 07938

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PARTICIPANT

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Ernest Mario

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  555 Byron Street, #401

  
	
   

  	
   

  	
  Palo Alto, California
  94301

  
						

 

9

 

INVESTMENT REPRESENTATION STATEMENT

 

	
  PARTICIPANT:

  	
   

  	
  ERNEST MARIO

  
	
   

  	
   

  	
   

  
	
  COMPANY

  	
  :

  	
   

  	
  RELIANT
  PHARMACEUTICALS, LLC.

  
	
   

  	
   

  	
   

  	
   

  
	
  SECURITY

  	
  :

  	
   

  	
  CLASS ONE COMMON UNITS

  
	
   

  	
   

  	
   

  	
   

  
	
  AMOUNT

  	
  :

  	
   

  	
  137,256 UNITS

  
	
   

  	
   

  	
   

  	
   

  
	
  DATE

  	
  :

  	
   

  	
  December 31, 2003

  

 

In
connection with the purchase of the above-listed Securities, the undersigned
Participant represents to the Company the following:

 

(a)                                  Participant
is aware of the Company’s business affairs and financial condition and has
acquired sufficient information about the Company to reach an informed and
knowledgeable decision to acquire the Securities. Participant has received and
read the financial information provided by the Company and has had an
opportunity to discuss the Company’s business, management and financial affairs
with the managers, officers and other management personnel of the Company. Participant
has also had the opportunity to ask questions of and receive answers from, the
Company and its management regarding the risks, terms and conditions of this
investment.

 

(b)                                 Participant
(i) has such knowledge and experience in financial and business matters
that it is capable of evaluating the merits and risks of its investment in
these Securities, (ii) is able to bear the complete loss of his investment
in these Securities, and (iii) is an “accredited investor” as that term is
defined in Rule 501(a)(3) under the Securities Act of 1933, as amended (the “Securities Act”).

 

(c)                                  Participant
is acquiring these Securities for investment purposes for Participant’s own
account only and not with a view to distributing or resale of all or any part
thereof in any transaction which would constitute a “distribution”
within the meaning of the Securities Act. Participant acknowledges that none of
the Securities have been registered under the Securities Act and, except as may
be specifically agreed to by the Company, the Company is under no obligation to
file a registration statement with the Securities and Exchange Commission with
respect to all or any part of such Securities.

 

Participant
acknowledges and understands that the Securities constitute “restricted securities” under the Securities Act and have not
been registered under the Securities Act in reliance upon a specific exemption
therefrom, which exemption depends upon, among other things, the bona fide nature
of Participant’s investment intent as expressed herein. In this connection,
Participant understands that, in the view of the Securities and Exchange
Commission, the statutory basis for such exemption may be unavailable if
Participant’s representation was predicated solely upon a present intention to
hold these Securities for the

 

 

minimum capital gains period specified under tax
statutes, for a deferred sale, for or until an increase or decrease in the
market price of the Securities, or for a period of one year or any other fixed
period in the future. Participant further understands that the Securities must
be held indefinitely unless they are subsequently registered under the
Securities Act or an exemption from such registration is available. Participant
has been advised or is aware of the provisions of Rule 144 promulgated under
the Securities Act, which permits limited resale of securities purchased in a
private placement subject to the satisfaction of certain conditions, including,
among other things:  the availability of
certain current public information about the Company, the resale occurring not
less than one year after a party has purchased and paid for the security to be
sold, the sale being through an unsolicited “broker’s
transaction” or in transactions directly with a market maker (as
said term is defined under the Securities Exchange Act of 1934, as amended) and
the number of shares being sold during any three-month period not exceeding
specified limitations.

 

	
   

  	
  Signature of Participant:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Ernest Mario

  
	
   

  	
   

  
	
   

  	
  Date: December 31, 2003

  

 

2

 

CONSENT OF SPOUSE

 

I,
Mildred Martha Mario, spouse of Ernest Mario, have read and approve the
foregoing Restricted Unit Agreement. In consideration of granting of the right
to my spouse to purchase Class One Common Units of Reliant Pharmaceuticals, LLC
as set forth in the Agreement, I hereby appoint my spouse as my
attorney-in-fact in respect to the exercise of any rights under the Agreement
and agree to be bound by the provisions of the Agreement insofar as I may have
any rights in said Agreement or any shares issued pursuant thereto under the
community property laws or similar laws relating to marital property in effect
in the state of our residence as of the date of the signing of the foregoing
Agreement.

 

 

Dated:  December 31, 2003

 

 

	
   

  	
   

  
	
   

  	
  Mildred Martha Mario

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