Document:

EXHIBIT 10.49

 

Reliant Pharmaceuticals,
Inc. Letterhead

March 30, 2007

 

PERSONAL AND CONFIDENTIAL

 

Mr. Peter Garrambone

380 Crescent Drive

Franklin Lakes, NJ 07416

 

Dear
Peter:

 

Reliant
Pharmaceuticals, Inc., a Delaware orporation (“Reliant” or the “Company”),
with primary offices at 110 Allen Road in Liberty Corner, New Jersey 07938, is
pleased to extend this “Offer of Employment” to you.

 

The
following is an outline of the terms of this employment offer:

 

	
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  Start Date:

  	
   

  	
  On
  or before May 1, 2007.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
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  Job Title/Status:

  	
   

  	
  Sr.
  Vice President, Business Development. Full time.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
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  Reporting:

  	
   

  	
  You
  will report directly to the Chief Executive Officer of the Company. In the
  event that there is no CEO, you will report to the Board of Directors of the
  Company or such other senior executive as is designated by the Board of
  Directors.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
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  Base Salary:

  	
   

  	
  Your
  semi-monthly salary is $14,583.33, payable the 15th and last day
  of each month, and is annualized to $350,000.00, minus the appropriate taxes
  and withholdings.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
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  Incentive Eligibility

  	
   

  	
  As
  an employee, you will be eligible to participate in our incentive
  compensation program, as in effect from time to time, up to 75% of your base
  salary. You must be employed by Reliant at the end of a given calendar year
  in order to be eligible, and you must also meet specific incentive objectives
  that will be established and communicated to you.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
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  Equity Participation:

  	
   

  	
  You
  will be eligible to participate in the Company’s Incentive Award Plan, as in
  effect from time to time, pursuant to which you will be granted an option to
  purchase up to 90,000 shares of common stock of the Company at an exercise
  price equal to the fair market value of the common stock of the Company as
  determined by the Compensation Committee of the Company’s Board of Directors
  (the “Comp Committee”) at the time of grant. You will also receive a
  grant of 10,000 shares of restricted stock on the same terms and conditions
  as other vice presidents of the Company. Such options and restricted stock
  will vest annually over a four (4) year period and be subject to the other
  terms and conditions of the Company’s 2007 Incentive Award Plan and the
  related agreements pursuant to which such grants are made. Any additional
  grants of options and restricted stock are solely in the discretion of the
  Company and subject to approval of the Comp Committee.

  

 

	
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  Benefits:

  	
   

  	
  During
  your employment with Reliant, you will be eligible for Reliant’s employee
  benefits program applicable to your position, in effect from time to time,
  subject to all plan terms and eligibility. The benefits for which you may be
  eligible are more fully described in the applicable plan summaries and
  related documents. The benefits currently offered to full-time employees
  include group medical, dental, vision and prescription coverage, group life
  and AD&D insurance, long-term and short-term disability insurance, 401(k)
  plan, flexible spending account, and select holidays. You will be eligible
  for a Combined-Time Off of eighteen (18) days which will accrue at the rate
  of 1.5 days per month. Additional information pertaining to benefits can be
  found in the enclosed employee packet.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
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  Non-Solicitation:

  	
   

  	
  You
  agree that Reliant has invested substantial time and effort in assembling its
  present workforce. Accordingly, you covenant and agree that during the term
  of your employment and for a period of twelve (12) months following the
  termination, for any reason, of your employment with the Company, you will
  not, directly or indirectly, entice or solicit or seek to induce or influence
  any of the Company’s executives or other key employees to leave their
  employment with the Company.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
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  Termination:

  	
   

  	
  If
  your employment with the Company is terminated by Reliant without “Cause” and
  you execute a general release of claims in a form reasonably satisfactory to
  Reliant, you will be entitled to one year base salary (subject to certain
  conditions) and certain medical benefits (such medical benefits to be subject
  to mitigation in the event you secure medical benefits following your
  separation from the Company). Following such one year period you will be
  entitled to enroll in’COBRA’ in accordance with applicable law.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
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  Contingencies:

  	
   

  	
  This
  offer is contingent upon the following:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  1.

  	
  our
  satisfactory completion of a reference check, including a criminal history
  record information background check.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  2.

  	
  satisfactory
  results of your successful completion of drug testing.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  3.

  	
  your
  furnishing us with proof of your identity and authorization to work in the
  United States.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  4.

  	
  your
  execution of the Company’s standard form of Confldentiality and Assignment
  Agreement.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  5.

  	
  your
  completion of all other appropriate forms provided to you by the Company during
  the hiring process.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Failure
  to meet any of these contingencies will render you ineligible for employment.

  

 

 

Although
we hope that your employment with us is mutually satisfactory, please note that
your employment at Reliant is “at will.” 
This means that you may resign from Reliant at any time with or without
cause, and Reliant has the right to terminate this employment relationship with
or without cause at any time. Neither this letter nor any other communication,
either written or oral, should be construed as a contract of employment for any
particular duration.

 

We
hope that you accept this offer of employment and look forward to you joining
us. Please sign and date where indicated and return this letter to me to
evidence your understanding of these terms and acceptance of this offer. By
execution of this letter you are representing and warranting to the Company
that your execution and delivery of this letter and performance of all of the
terms of this letter and the performing of services for the Company in
connection with your employment do not and will not breach or conflict with any
agreement with a third party, including an agreement to keep in confidence any
proprietary information of another entity acquired by you in confidence or in
trust prior to the date of this agreement.

 

This
offer shall expire at 5:00 pm (ET) on Friday, April 20, 2007 if we have not
received your written acceptance of this offer by then.

 

Sincerely,

 

RELIANT PHARMACEUTICALS, INC.

 

	
  By: 

  	
  /s/
  Bradley T. Shears

  	
   

  
	
   

  	
  Bradley
  T. Sheares, Ph.D.

  
	
   

  	
  Chief
  Executive Officer

  
				

 

Agreed
to and Accepted:

 

	
  /s/
  Peter L. Garrambone, Jr.

  	
   

  
	
  Peter
  Garrambone

  

 

 

Date:  April 20, 2007EXHIBIT 10.50

 

SEPARATION
AGREEMENT

 

FOR AND IN CONSIDERATION
of the mutual promises, covenants and agreements made in this agreement (this “Agreement”)
by and between ERNEST MARIO, PH.D. (“Executive”, a term which includes Executive
himself, Executive’s spouse, and all assigns, heirs, and successors in
interest) and RELIANT PHARMACEUTICALS, INC.  (“Reliant”,
a term which for the purposes of this Agreement includes Reliant, any and all
parent, subsidiary, and affiliate corporations), the parties agree as follows:

 

1.                                                                                      Termination
of Employment

 

Executive has agreed
voluntarily to resign his employment with Reliant effective at 11:59 pm on June
30, 2007  (“Termination Date”), whereupon
all benefits and privileges related thereto will cease, except as expressly set
forth herein.

 

2.                                                                                      No
Admissions

 

Reliant and Executive
agree that the entry of the parties into this Agreement, and the agreements
contained herein, are not and shall not be construed to be an admission of
liability on the part of any party hereto or any parties hereby released or
held harmless.

 

3.                                                                                      Adequacy
of Consideration

 

The parties agree that Reliant
has no obligation to Executive to make the payments or arrangements set forth
herein independent of this Agreement. The parties further acknowledge the
adequacy of the “additional consideration” provided herein by each to the
other, that this is a legally binding document, and that they intend to comply
with and be faithful to its terms. Executive acknowledges that he has received
payment for all salary, accrued but unused vacation and reimbursement for all
reimbursable business expenses accrued through the date that this Agreement is
executed by Executive (other than reasonable and documented business expenses
incurred in the ordinary course of business by Executive through the
Termination Date, all of which will be submitted to Reliant by Executive within
ten (10) days following the Termination Date), and except for the payments
under this Agreement, or benefits in which he is vested under Reliant’s employee
benefit plans, and that he has received all amounts to which he is otherwise
entitled.

 

4.                                                                                      Payments
to Executive

 

In partial consideration
for the promises of Executive set forth herein, Reliant agrees to pay to
Executive the amounts set forth in Sections 4(a), 4(b) and 4(c) below subject
to and on the terms described in this Section 4:

 

	
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a.               One Million Two Hundred
Fifty Thousand Dollars and No Cents ($1,250,000.00) to be paid in twenty four
(24) equal installments of Fifty Two Thousand Eighty Three Dollars and 33/100 ($52,083.33)
beginning with the first regularly scheduled pay period following the
Termination Date.

 

b.              The payments made
pursuant to this Section 4, (i) shall be reduced by statutorily required
deductions, including any income or employment taxes required to be withheld as
a result of the granting of restricted stock under Sections 5(b) or 5(d) and/or
the assignment of the interest in the aircraft under Section 5(c), (ii) shall
be made in accordance with Reliant’s normal payroll practices and (iii) are
contingent upon execution and delivery
by Executive to Reliant of a letter substantially in the form of Exhibit A
attached hereto on a date that is after the Termination Date but prior to July
15, 2007.

 

c.               Reliant will make the above-described payments
to Executive notwithstanding any set-off agreements, which may have previously
existed between Reliant and Executive and regardless of whether he obtains any
employment or income from any other source after the Termination Date.

 

d.              The payments made
pursuant to this Section 4 shall not be matched by Reliant or otherwise
considered compensation to Executive for purposes of Reliant’s 401(k) or other
benefit plans.

 

e.               Other than as set
forth herein, Reliant is not obligated to pay Executive any other compensation.

 

f.                 Reliant shall not
be obligated to make any of the payments set forth herein if Executive breaches
this Agreement in any material way or
revokes it pursuant to Section 28 herein. If Executive breaches the
provisions of Sections 6, 7 or 10 of this Agreement or the surviving sections
of his Employment Agreement (as defined below) that are listed in Section 24
hereof, Executive shall be obligated to repay Reliant all amounts paid under
this Section 4, other than $100 thereof.

 

5.                             Other Agreements

 

a.               As of the
Termination Date, Executive or his permitted assignees will have a total of (i)
949,936 vested options to purchase Reliant common stock, all of which have an
exercise price of $20.00/share and (ii) 469,974 shares of restricted common stock
(all of which are vested). All of vested options and restricted stock shall
continue to be governed by the Reliant Pharmaceuticals, LLC Equity Incentive
Plan (as amended) or Reliant Pharmaceuticals, Inc. 2004 Equity Incentive Plan
(as amended), as applicable, and the agreements pursuant to which such options and
restricted stock were granted; provided

 

	
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that all such vested
options will remain exercisable until their respective expiration dates as
provided in the applicable option agreements. Executive will forfeit the
425,000 shares of restricted common stock issued pursuant to Section 4(f) of
the Employment Agreement, all of which are unvested as of the Termination Date

 

b.              The terms of Section
4(d) of the Employment Agreement notwithstanding, Executive shall retain the
right to receive the Liquidity Event Bonus (as defined in the Employment
Agreement) but only if a Liquidity Event (as defined in the Employment
Agreement) occurs prior to July 1, 2008. In the event that a Liquidity Event
(as defined in the Employment Agreement) has not occurred before June 30, 2008,
then on July 1, 2008, Reliant shall grant and issue to Executive Three Hundred
Thirty Three Thousand (333,000) shares of its restricted common stock, which
shares shall be fully vested and transferable upon grant, subject only to the
terms of Reliant’s standard form of restricted stock agreement and the
Stockholders Agreement, dated as of April 1, 2004 (as amended from time to
time, the “Stockholder’s Agreement”)
by and among Reliant and each of the holders of the shares of Reliant’s capital
stock who is a signatory thereto In the
event that any portion of the Liquidity Event Bonus constitutes an “excess
parachute payment” within the meaning of Sections 280G and 4999 of the Code
(such amount being the “Excess Parachute Payment”), then Reliant shall
pay the Executive an additional amount equal to twenty (20%) of the amount of
such Excess Parachute Payment, as provided under Section 4(f)(iii) of
the Employment Agreement. Such payment shall be made within thirty (30) days
after payment of the Liquidity Event Bonus, but not later than December 31 of
the year next following the year in which Executive or Reliant on behalf of
Executive remits the taxes due under Section 4999 of the Code.

 

c.               On or prior to
August 15, 2007, but no earlier than July 31, 2007, for no additional cash
consideration, Reliant will assign to Executive (or to an entity designated and
controlled by Executive) Reliant’s 3/16ths NetJets fractional ownership
interest in a Citation Excel aircraft, tail number N668QS (such interest, the “Aircraft”),
which interest has an agreed value of One Million Four Hundred Thousand Dollars
and No Cents ($1,400,000.00). Upon consummation of the assignment of the
Aircraft, the assignee shall assume responsibility for all payments and
obligations with respect to the Aircraft from and after the date that title to
the Aircraft passes to the assignee.

 

d.              Upon the earlier of
(i) a Change in Control (as defined in Section 4(f)(ii) of the Employment
Agreement) or (ii) January 31, 2009, Reliant will grant and issue to Executive
425,000 shares of its common stock (the “Deferred Shares”). The Deferred
Shares shall be fully vested and transferable upon issuance, subject only to
the terms of Reliant’s standard form of restricted stock agreement and the
Stockholders Agreement.

 

e.               Nothing in this
Agreement is intended to accelerate, alter or reduce any other vested or 

 

	
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accrued benefits (if any)
to which Executive may be entitled under Reliant’s 401(k) Plan.

 

f.                 Reliant will not
oppose Executive’s efforts to obtain unemployment benefits so long as Executive
is in compliance with the terms of this Agreement and his other obligations to Reliant;
provided that the foregoing shall in no way prevent Reliant from responding
truthfully to inquiries from or investigations by governmental authorities with
respect to Executive’s application for such unemployment (or similar) benefits.

 

g.              The
obligations of Reliant under Sections 5(a), (b), (c) and (d) are contingent
upon execution and delivery by
Executive to Reliant of a letter substantially in the form of Exhibit A
attached hereto on a date that is after the Termination Date but prior to July
15, 2007.

 

6.                                                                                      Executive’s
Full Release of All Claims

 

In consideration for the
undertakings and promises of Reliant set forth in this Agreement, Executive
unconditionally releases, discharges, and holds harmless Reliant, its officers,
directors, shareholders, employees, agents, attorneys, suppliers and
contractors (herein collectively referred to as “Releasees”), from each
and every claim, cause of action, right, liability or demand of any kind and
nature, and from any claims which may be derived therefrom (collectively
referred to as “claims”), that Executive had, has, or might claim to
have against Releasees at the time Executive executes this Agreement (other
than claims brought by Executive against Reliant for breach of this Agreement),
including but not limited to any and all claims:

 

a.                                       arising
from Executive’s employment, pay, bonuses, commissions, vacation, sick leave,
stock options, or any other Executive benefits, and other terms and conditions
of employment or employment practices of Reliant;

 

b.                                      arising
under the Employment Agreement, including, without limitation, use of an
aircraft;

 

c.                                       relating
to the termination of Executive’s employment with Reliant, the surrounding
circumstances thereof, or any communications about the termination of Executive’s
employment;

 

d.                                      relating
to payment of any attorney’s fees for Executive;

 

e.                                       based
on discrimination on the basis of race, color, religion, sex, national origin,
handicap, disability, age or any other category protected by law 

 

	
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under Title VII of the Civil Rights Act of 1964, the
Civil Rights Act of 1991, Executive Order 11246, the Equal Pay Act, the
Americans With Disabilities Act, the Rehabilitation Act of 1973, the Age
Discrimination in Employment Act of 1967, the Older Workers Benefits Protection
Act, COBRA, the Executive Retirement Income Security Act of 1974, the New
Jersey Law Against Discrimination, the Family Medical Leave Act, the Uniformed
Services and Redeployment Rights Act of 1994, the New Jersey Law Against
Discrimination, the New Jersey Conscientious Executive Protection Act, the New
Jersey Family Leave Act, the New Jersey Wage Payment Law (as any of these laws
may have been amended) or any other similar labor, employment or
anti-discrimination laws;

 

f.                                         based
on any contract, tort, whistleblower, personal injury, or wrongful discharge
theory; and

 

g.                                      based
on any other federal, state or local constitution, regulation, law (statutory
or common), or legal theory.

 

7.                                                                                      Executive’s
Covenant Not to Sue or Accept Recovery; No Prior Assignment

 

Executive covenants not
to sue Reliant or any Releasees on account of any claim released hereby. Executive
further covenants not to accept, recover or receive any monetary damages or any
other form of relief which may arise out of or in connection with any
administrative remedies which may be filed with or pursued independently by any
governmental agency or agencies, whether federal, state or local. Executive
represents and warrants that he has not assigned or transferred, in any manner,
including by subrogation or operation of law, any portion of any claim, action,
complaint, charge or suit encompassed by the releases set forth in this
Agreement.

 

8.                                                                                      On
The Job Illness or Injury At The Time of Execution

 

Executive has no
knowledge or claim of any condition, symptom or events that could give rise to
or be the result of any on the job illness or injury.

 

9.                                                                                      Return
of Property

 

Executive agrees that he
has not removed any Reliant property from Reliant’s premises, except as
authorized by Reliant in writing, or that Executive will return all of Reliant’s
property immediately upon execution of this Agreement. Such property includes,
but is not limited to, the original and any copies of any confidential
information or trade secrets, all Reliant-issued vehicles, computers, PDA’s, keys,
pass cards, customer lists, files, brochures, documents or 

 

	
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5

 

computer disks or
printouts, equipment and any other item relating to Reliant and its business. Further,
Executive agrees that he has not taken, procured, or copied (and will not take,
procure or copy) any property of Reliant on or after the Termination Date.

 

10.                                                                               Cooperation
in Legal Matters

 

In consideration
for the promises and payments by Reliant pursuant to this Agreement, at the
request of Reliant, Executive agrees to cooperate to the fullest extent
possible with respect to legal matters involving Releasees about which Executive
has or may have personal knowledge (other than Executive termination or any
other claim he may bring against Releasees), including any such matters which
may arise after the termination of Executive employment. Reliant will reimburse
Executive for properly documented out-of-pocket expenses actually incurred by Executive
in providing such requested cooperation, but only to the extent such expense
are approved in advance by Reliant.

 

11.                                                                               Cooperation
in Professional Transition of Business Affairs

 

In consideration
for the promises and payments by Reliant pursuant to this Agreement, Executive
agrees to cooperate to the fullest extent reasonably possible in the
professional transition of those matters for which he was responsible and
involved in during Executive’s employment with Reliant.

 

12.                                                                               No
Interest in Reinstatement

 

Executive hereby
acknowledges that Executive has no interest in reinstatement, reemployment or
employment with Reliant, and Executive forever waives any interest in or claim
of right to any future employment by Reliant. Executive further covenants not
to apply for future employment with Reliant.

 

13.                                                                               Confidentiality
Regarding This Agreement

 

Except as otherwise
expressly provided in this Section 13, the parties agree that the terms and
conditions of this Agreement are and shall be deemed to be confidential and
hereafter shall not be disclosed to any other person or entity. The only
disclosures excepted by this Section 13 are (a) as may be required by law; (b)
the parties may tell prospective employers the dates of Executive’s employment,
positions held, evaluations received, Executive’s duties and responsibilities
and salary history with Reliant; (c) the parties may disclose the terms and
conditions of this Agreement to their attorneys, accountants and/or tax
advisors; (d) Reliant may disclose this Agreement, its terms and conditions to
financing sources, investment bankers, advisors to such persons and in
connection with an organic transaction; provided that the receiving party is
subject to an obligation of confidentiality to Reliant and (e) the parties may 

 

	
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6

 

disclose the terms and
conditions of this Agreement to their respective spouses and children, if any,
provided, however, that Executive makes Executive’s spouse and children aware
of the confidentiality provisions of this paragraph and Executive’s spouse and
children agrees to keep the terms of this Agreement confidential.

 

14.                                                                               Resignations

 

Executive hereby resigns
as director of Reliant.

 

15.                                                                               Assignment

 

This Agreement shall be binding upon Executive and shall not be subject
to assignment or delegation by Executive without Reliant’s express written
consent. This Agreement shall likewise be binding upon Reliant and its
successors and assigns, and shall be subject to assignment by Reliant, without Executive’s
consent, (a) to any affiliate of Reliant or (b) to any third party in
connection with (i) the sale of all or substantially all of the assets of Reliant
or (ii) a merger, consolidation, change of control or similar transaction
involving Reliant. Reliant shall use commercially reasonable efforts to provide
Executive with written notice of any such permitted assignment; provided that
failure to provide such written notice shall not void or otherwise adversely
impact the validity of any such assignment. This Agreement shall inure to the
benefit of and be enforceable by the parties hereto, and their respective
heirs, personal representatives, successors and assigns.

 

16.                                                                               Severability

 

If any provision of this
Agreement is held to be invalid, illegal or unenforceable, such provision shall
be severed and enforced to the extent possible or modified in such a way as to
make it enforceable, and the invalidity, illegality or unenforceability thereof
shall not affect the validity, legality or enforceability of the remaining
provisions of this Agreement; provided, however, that both parties acknowledge
and agree that the general release contained in Section 6, and the covenants in
Sections 7 and 24 hereof are essential terms of this Agreement. If any of
Section 6 or Sections 7 and 24 is held to be unenforceable by an arbitrator
pursuant to Section 22 or a court of competent jurisdiction, the remaining
provisions of this Agreement shall be enforceable at Reliant’s sole discretion.

 

17.                                                                               Governing Law

 

This Agreement shall be governed by and interpreted and construed in
accordance with the laws of the State of New Jersey without reference to its
internal conflict of law principles.

 

	
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18.                                                                               Expenses

 

Each of Reliant and Executive shall bear its/his own costs and expenses
in connection with the negotiation and documentation of this Agreement.

 

19.                                                                               Counterparts

 

This Agreement may be executed in counterparts, each of which shall be
an original, but all of which shall constitute one and the same instrument.

 

20.                                                                               Jurisdiction and Venue

 

The parties irrevocably agree that all actions to enforce an arbitrator’s
decision pursuant to Section 22 of this Agreement may be instituted and
litigated in federal, state or local courts sitting in Newark, New Jersey and
each of such parties hereby consents to the jurisdiction and venue of such
court, waives any objected based on forum non conveniens
and any right to a jury trial as set forth in Section 21 of this Agreement.

 

21.                                                                               Waiver of Jury Trial

 

EXECUTIVE HEREBY WAIVES, RELEASES
AND RELINQUISHES AND ALL RIGHTS HE MAY HAVE TO A TRIAL BY JURY WITH RESPECT TO
ANY ACTIONS ARISING DIRECTLY OR INDIRECTLY AS A RESULT OR IN CONSEQUENCE OF
THIS AGREEMENT, INCLUDING, WITHOUT LIMITATIONS, ANY CLAIM OR ACTION TO REMEDY ANY
BREACH OR ALLEGED BREACH HEREOF, TO ENFORCE ANY TERM HEREOF, OR IN CONNECTION
WITH ANY RIGHT, BENEFIT OR OBLIGATION ACCORDED OR IMPOSED BY THIS AGREEMENT.

 

22.                                                                               Arbitration

 

Notwithstanding anything herein to the contrary, in the event that
there shall be a dispute among the parties arising out of or relating to this
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
the New Jersey Alternative Procedure for Dispute Resolution Act, AAA’s
Commercial Arbitration Rules and the Federal Rules of Civil Procedure relating
to the production of evidence. The parties agree that the arbitrator may impose
sanctions in his or her discretion to enforce compliance with discovery and
other obligations. Such arbitration shall be presided over by a single
arbitrator. If Executive, on the one hand, and Reliant, 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 Reliant and employee from a
list of five (5) potential arbitrators provided by AAA. Such list shall be 

 

	
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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.

 

23.                                                                               No
Reliance Upon Other Statements

 

This Agreement is entered
into without reliance upon any statement or representation of any party hereto
or parties hereby released other than the statements and representations
contained in writing in this Agreement.

 

24.                                                                               Survival
of Certain Covenants 

 

The parties recognize that certain terms of the Amended and Restated
Employment Agreement, dated as of November 15, 2005, but effective as of July
1, 2005 (as amended, the “Employment Agreement”), are intended to
survive Executive’s termination, including, but not limited to Sections 4(d)
and 4(f) (regarding the Section 4(d) Shares and Liquidity Event Bonus), Section
6 (Records and Confidential Data), Section 8 (Assignment of Inventions), and
all subsections of Section 7 (Additional Covenants) and Section 9
(Miscellaneous Provisions) to the extent necessary to give effect to the other
surviving Sections of the Employment Agreement. To the extent that any
conflicts may arise between this Agreement and the surviving sections of the
Employment Agreement, this Agreement shall be deemed controlling. Without
limiting the effect of any other provisions of Section 7 of the Employment
Agreement, Reliant agrees that Executive’s activities with respect to Capnia,
Incorporated shall not be deemed to violate Section 7(a) of the Employment
Agreement so long as Capnia, Incorporated does not compete directly with any
activities of Reliant during the six (6) month period following the Termination
Date.

 

25.                                                                               Entire
Understanding

 

The parties acknowledge
that this Agreement contains the entire understanding of the parties and that
it may not be modified without the express written consent of the parties
hereto.

 

	
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9

 

26.                                                                               No
Waiver

 

Any failure by any party
to enforce any of their rights and privileges under this Agreement shall not be
deemed to constitute waiver of any rights and privileges contained herein.

 

27.                                                                               Full
and Knowing Waiver

 

By signing this
Agreement, Executive certifies that:

 

a.                                       Executive
carefully read and fully understands the provisions of this Agreement;

 

b.             Executive was advised by Reliant in
writing, via this

Agreement,
to consult with an attorney before signing this Agreement;

 

c.                                       Reliant
allows Executive twenty-one (21) days from its initial presentation to Executive
to consider this Agreement before signing it; and,

 

d.                                      Executive
agrees to its terms knowingly, voluntarily and without intimidation, coercion
or pressure.

 

28.                                                                               Revocation of Agreement

 

Executive may revoke this
Agreement within seven (7) calendar days after signing it. To be effective,
such revocation must be received in writing by Bradley T. Sheares, Ph.D. personally
at Reliant Pharmaceutical, Inc., 110 Allen Road Liberty Corner, New Jersey  07938. Revocation can be made by hand
delivery, telegram, facsimile, or postmarking before the expiration of this
seven (7) day period. None of the obligations of Reliant under this Agreement
shall be effective in the event that Executive revokes this Agreement pursuant
to this Section 28.

 

[Signature
Page Follows]

 

	
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10

 

IN WITNESS WHEREOF the
undersigned hereunto set their hands to this Agreement on the dates written
below.

 

 

	
   

  	
  RELIANT PHARMACEUTICALS, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  Date: June ___, 2007

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Ernest Mario, Ph.D.

  
	
   

  	
   

  
	
   

  	
  Date: June ___, 2007

  
	
   

  	
   

  

 

	
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11

 

EXHIBIT A

 

                       ,
2007

 

Reliant Pharmaceuticals,
Inc.

110 Allen Road

Liberty Corner, NJ

Attention: Bradley T.
Sheares, Ph.D., Chief Executive Officer

 

Re:  Separation Agreement

 

Dear Dr. Sheares:

 

Reference is made to the
Separation Agreement (the “Separation Agreement”) between Reliant
Pharmaceuticals, Inc. (“Reliant”) and the undersigned (“Executive”),
which agreement was executed by Reliant on June    , 2007 and by
Executive on June    , 2007. Capitalized terms used but not
otherwise defined in this letter have the meanings ascribed to them in the
Separation Agreement.

 

This letter is being delivered
pursuant to Section 4(b) of the Separation Agreement.

 

Executive hereby (a)
reaffirms the provisions of the Separation Agreement, (b) acknowledges that he
has received payment for all salary, accrued but unused vacation and
reimbursement for all reimbursable business expenses accrued through the
Termination Date, and except for the payments under the Separation Agreement,
or benefits in which he is vested under Reliant’s employee benefit plans, he
has received all amounts to which he is otherwise entitled through the
Termination Date, (c) agrees that the provisions of Section 6 of the Separation
Agreement shall also cover the period from the date the Separation Agreement
was executed by Executive through and including the Termination Date, (d)
agrees that the provisions of Section 7 shall apply to any claims or other
matters released pursuant to the preceding clause (c) and (e) agrees that the
provisions of Sections 17, 20, 21, and 22 of the Separation Agreement apply to
this letter.

 

Sincerely,

 

	
   

  	
   

  
	
  Ernest Mario, Ph.D.

  

 

	
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12

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