Document:

EXHIBIT 10.1(b)

 

AMENDMENT NO. 2

TO RELIANT PHARMACEUTICALS, INC.

2004
EQUITY INCENTIVE PLAN

 

This Amendment No. 2 to the Reliant
Pharmaceuticals, Inc. 2004 Equity Incentive Plan, was duly adopted by the
Compensation Committee of the Board of Directors of Reliant Pharmaceuticals, Inc.
(the “Committee”) on September      , 2005
and approved by the Board of Directors of the Pharmaceuticals, Inc. on September      ,
2005 and the stockholders of Reliant Pharmaceuticals, Inc., by written
action on September       , 2005.

 

In
accordance with the requirements of Section 13.1 of the Reliant
Pharmaceuticals, Inc. 2004 Equity Incentive Plan (the “Original Plan”),
the Committee desires to amend certain provisions of the Original Plan as more
particularly set forth herein.

 

1.                                       Definitions.
Capitalized terms used but not defined herein shall have the respective
meanings given to such terms in the Original Plan.

 

2.                                       Amendment to Section 3.1
– NUMBER OF SHARES. Section 3.1(a) of the Original Plan is hereby
deleted, and amended and restated in its entirety to read as follows:

 

(a)                                  Subject to Article 11
the aggregate number of shares of Stock which may be issued or transferred
pursuant to Awards under the Plan shall be the sum of (i) 5,693,600  shares
of Stock; plus (ii) any shares of Stock which would again become available
for issuance under the Company’s Equity Incentive Plan (formerly known as the
Reliant Pharmaceuticals, LLC Equity Incentive Plan) upon forfeiture of options
or restricted stock previously granted thereunder. The payment of Dividend
Equivalents in conjunction with any outstanding Awards shall not be counted
against the shares available for issuance under the Plan.

 

3.                                       No Other
Amendments. Except as specifically amended hereby, the Original Plan shall
continue in full force and effect as written. All references in the Original
Plan to “this Plan,” “herein,” “hereof,” “hereby” and words of similar import
shall refer to the Original Plan as amended hereby.

 

4.                                       Governing Law.
This Amendment shall be construed in accordance with and governed by the law of
the State of Delaware.

 

 

	
   

  	
  Certified on this
         day of September, 2005

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SecretaryEXHIBIT 10.1(c)

 

RELIANT PHARMACEUTICALS, INC.

 

2004 EQUITY INCENTIVE
PLAN

 

STOCK OPTION AGREEMENT

 

Unless
otherwise defined herein, capitalized terms shall have the same meanings as set
forth in the Reliant Pharmaceuticals, Inc. 2004 Equity Incentive Plan (as
amended from time to time, the “Plan”).

 

NOTICE OF OPTION GRANT

 

[Name]

 

You (“Participant”) have been granted an option to purchase Common
Stock (the “Shares”) in the
Company, subject to the terms and conditions of the Plan and this Option
Agreement. The terms of your grant are set forth below:  

 

	
  Date of Grant:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Vesting Commencement
  Date:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Exercise Price per
  Share:

  	
   

  	
  $

  
	
   

  	
   

  	
   

  
	
  Shares Granted:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Total Exercise Price:

  	
   

  	
  $

  
	
   

  	
   

  	
   

  
	
  Type of Option:

  	
   

  	
  Incentive Stock Option

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Non-Qualified Stock
  Option

  
	
   

  	
   

  	
   

  
	
  Expiration Date:

  	
   

  	
   

  

 

Exercise
and Vesting Schedule:

 

This
Option is exercisable only to the extent it is vested. This Option shall vest
according to the following schedule:

 

Twenty-five percent (25%) of the Option (rounded down to
the next whole number of Shares) shall vest on each anniversary of the Vesting
Commencement Date, so that all of the Option shall be vested on the fourth
anniversary of the Vesting Commencement Date.

 

Notwithstanding the foregoing, upon a Change of Control,
fifty percent (50%) of any remaining unvested portion of the Option shall vest.
The Option shall be fully vested if your 

 

 

employment with the Company is
terminated without Cause or you terminate your employment with the Company for
Good Reason within one year following a Change of Control. “Good
Reason” means: (a) your base compensation
is decreased by more than fifteen percent (15%); (b) your duties and
responsibilities are materially reduced; (c) your title is substantively
reduced, other than as a part of a change in titles across departments or
across all executive officers; or (d) you are involuntarily relocated more
than 50 miles from your current location of employment immediately prior to the
Change of Control for a period of more than one year. For one of these four
events to constitute Good Reason, however, the event must be involuntary, and you
must file a written objection with the Company (or its successor company)
within thirty (30) days following the date that you receive notice of the event.
If you do not file an objection during this 30-day period, the event will not
constitute Good Reason.

 

Termination
Period:

 

This
Option may be exercised for thirty (30) days after Participant terminates
service as an Employee, Consultant or Director of the Company and all of its
Subsidiaries, or such longer period as may be applicable upon the death or
Disability as provided herein, but in no event later than the Expiration Date
as provided above.

 

I.                                         AGREEMENT

 

1.                                       Grant
of Option. The Company hereby grants to the Participant an Option to
purchase the number of Shares set forth in the Notice of Grant, at the exercise
price set forth in the Notice of Grant (the “Exercise
Price”). Notwithstanding anything to the contrary anywhere else in
this Option Agreement, this grant of an Option is subject to the terms,
definitions and provisions of the Plan, which are incorporated herein by
reference.

 

If
designated in the Notice of Grant as an Incentive Stock Option, this Option is
intended to qualify as an Incentive Stock Option as defined in Section 422
of the Code; provided, however, that to the extent that the aggregate Fair
Market Value of the Shares with respect to which Incentive Stock Options
(within the meaning of Code Section 422, but without regard to Code Section 422(d)),
including the Option, are exercisable for the first time by the Participant
during any calendar year (under the Plan and all other incentive stock option
plans of the Company or any Subsidiary) exceeds $100,000, such options shall be
treated as not qualifying under Code Section 422, but rather shall be
treated as a Non-Qualified Stock Option to the extent required by Code Section 422.
The rule set forth in the preceding sentence shall be applied by taking
options into account in the order in which they were granted. For purposes of
these rules, the Fair Market Value of the Common Stock shall be determined as
of the time the option with respect to such stock is granted.

 

2.                                       Exercise
of Option. This Option is exercisable as follows:

 

(a)                                  Right
to Exercise.

 

(i)                                     This
Option shall be exercisable cumulatively according to the vesting schedule set
out in the Notice of Grant. For purposes of this Stock Option Agreement, this
Option shall vest based on Participant’s continued performance of services for
the Company or any of its Subsidiaries as an Employee, Consultant or Director. Unless
otherwise provided in 

 

2

 

the Notice of Option Grant, if the Participant ceases to perform services
for the Company and its Subsidiaries as an Employee, Consultant or Director,
then any portion of the Option which is not vested shall terminate and shall
not become exercisable.

 

(ii)                                  This
Option may not be exercised for a fraction of a Share.

 

(iii)                               In the event of a
Participant’s death, disability or other termination of the Participant’s
service to the Company and all Subsidiaries as an Employee, Consultant or
Director, the exercisability of the Option is governed by Section 5 below.

 

(iv)                              In
no event may this Option be exercised after the Expiration Date as set
forth in the Notice of Grant.

 

(b)                                 Method
of Exercise. This Option shall be exercisable by delivery of an executed
Exercise Notice (in the form attached as Exhibit A). The
Exercise Notice must state the number of Shares for which the Option is being
exercised, and such other representations and agreements with respect to such
shares of Common Stock as may be required by the Company pursuant to the
provisions of the Plan. The Exercise Notice must be signed by the Participant
and shall be delivered in person or by certified mail to the Secretary of the
Company. The Exercise Notice must be accompanied by payment of the Exercise
Price, including payment of any applicable withholding tax. This Option shall
be deemed to be exercised upon receipt by the Company of such written Exercise
Notice accompanied by the Exercise Price and payment of any applicable
withholding tax.

 

(c)                                  Compliance
with Applicable Law. No Shares shall be issued pursuant to the exercise of
an Option unless such issuance and such exercise comply with all relevant
provisions of law and the requirements of any stock exchange upon which the
Shares may then be listed. Assuming such compliance, for income tax
purposes the Shares shall be considered transferred to the Participant on the
date on which the Option is exercised with respect to such Shares. However, for
purposes of voting or rights to receive dividends, the Shares will not be
considered issued to the Participant until the Participant is listed on the
books and records of the Company as the holder of such Shares.

 

3.                                       Participant’s
Representations. If the Shares purchasable pursuant to the exercise of this
Option have not been registered under the Securities Act of 1933, as amended
(the “Securities Act”), at the
time this Option is exercised, Participant shall concurrently with the exercise
of all or any portion of this Option, deliver to the Company his or her
Investment Representation Statement in the form attached hereto as Exhibit B.

 

4.                                       Method
of Payment. Payment of the Exercise Price shall be by any of the following,
or a combination thereof, at the election of the Participant:

 

(a)                                  cash;

 

(b)                                 check;

 

(c)                                  with
the consent of the Committee, surrender of other shares of Common Stock of the
Company which (A) in the case of Shares acquired from the Company, have
been 

 

3

 

owned by the Participant for more than six (6) months on the
date of surrender, and (B) have a Fair Market Value on the date of
surrender equal to the Exercise Price of the Shares as to which the Option is
being exercised;

 

(d)                                 with
the consent of the Committee, surrendered Shares issuable upon the exercise of
the Option having a Fair Market Value on the date of exercise equal to the
aggregate Exercise Price of the Option or exercised portion thereof;

 

(e)                                  with
the consent of the Committee, delivery of a notice that the Participant has
placed a market sell order with a broker with respect to Shares then issuable
upon exercise of the Option and that the broker has been directed to pay a
sufficient portion of the net proceeds of the sale to the Company in
satisfaction of the aggregate Exercise Price; provided, that payment of such
proceeds is then made to the Company upon settlement of such sale; or

 

(f)                                    with
the consent of the Committee, property of any kind which constitutes good and
valuable consideration.

 

5.                                       Term
of Option. To the extent that this Option is not vested at the date on
which the Participant ceases to provide services to the Company and its
Subsidiaries as an Employee, Consultant or Director, or if the Participant does
not exercise this Option within the time specified herein, the Option shall
terminate. This Option shall terminate on the date Participant ceases to
provide services to the Company and its Subsidiaries for Cause. Except as
provided in this Section 5, this Option may be exercised only within
the term set out in the Notice of Grant.

 

(a)                                  Termination
of Relationship. If Participant ceases to provide services to the Company
and its Subsidiaries other than for Cause or by reason of the Participant’s
death or Disability, Participant may exercise the vested portion of this
Option during the Termination Period set out in the Notice of Grant.

 

(b)                                 Death
or Disability of Participant. If Participant ceases to provide services to
the Company and its Subsidiaries as a result of death or Disability, the vested
portion of the Option as of the date on which such Participant ceased to
provide such services, shall be exercisable at any time within twelve (12)
months from such date, but in no event later than the Expiration Date as set
forth in the Notice of Grant.

 

6.                                       Restrictions
on Shares . Participant hereby agrees that Shares purchased upon the
exercise of the Option shall be subject to such terms and conditions as the
Committee shall determine in its sole discretion, including, without
limitation, restrictions on the transferability of Shares, the right of the
Company to repurchase Shares, and a right of first refusal in favor of the Company
with respect to permitted transfers of Shares. Such terms and conditions may,
in the Committee’s sole discretion, be contained in the Exercise Notice with
respect to the Option or in such other agreement as the Committee shall
determine and which the Participant hereby agrees to enter into at the request
of the Company.

 

7.                                       Non-Transferability
of Option. This Option may not be transferred in any manner except by
will or by the laws of descent or distribution. It may be exercised during
the lifetime of Participant only by Participant. Notwithstanding the foregoing
if the Option is designed in the Notice of Grant as a Non-Qualified Stock
Option, then the Option may be transferred to the 

 

4

 

Participant’s Immediate Family; provided, however, that any such
transfer is without payment of any consideration whatsoever, that no such
transfer shall be valid unless first approved by the Committee, acting in its
sole discretion, and that any Option so transferred shall remain subject to the
terms and conditions of this Option agreement. The terms of this Option shall
be binding upon the executors, heirs, successors and assigns of the Participant.
For this purpose “Immediate Family”
shall mean Participant’s spouse, former spouse, children, step-children,
grandchildren, siblings, parents, step-parents, nieces, nephews, mother-in-law,
father-in-law, son-in-law, daughter-in-law, brother-in-law, sister-in-law,
including adoptive relationships, and any person sharing the Participant’s
household (other than as a tenant, guest or employee), or trusts in which any
of the foregoing have more than a fifty percent interest, foundations in which
the foregoing (or the Participant) control the management of assets or any
other entity in which the foregoing persons (or the Participant) own more than
fifty percent of the voting interests.

 

[SIGNATURE PAGE FOLLOWS]

 

5

 

This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original and all of which shall
constitute one document.

 

	
   

  	
  RELIANT PHARMACEUTICALS, INC

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

PARTICIPANT
ACKNOWLEDGES AND AGREES THAT THE OPTION HEREIN GRANTED CONTINUES TO BE
EXERCISABLE 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 THIS OPTION OR ACQUIRING SHARES HEREUNDER). PARTICIPANT
FURTHER ACKNOWLEDGES AND AGREES THAT NOTHING IN THIS AGREEMENT, NOR IN THE
COMPANY’S 2004 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.

 

Participant
acknowledges receipt of a copy of the Plan and represents that he is familiar
with the terms and provisions thereof. Participant hereby accepts this Option
subject to all of the terms and provisions thereof. Participant has reviewed
the Plan, and this Option in their entirety, has had an opportunity to obtain
the advice of counsel prior to executing this Option and fully understands all
provisions of the Option. Participant hereby agrees to accept as binding,
conclusive and final all decisions or interpretations of the Committee upon any
questions arising under the Plan or this Option. Participant further agrees to
notify the Company upon any change in the residence address indicated below.

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Residence Address:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

6

 

EXHIBIT A

 

RELIANT PHARMACEUTICALS,
INC

 

2004 EQUITY INCENTIVE
PLAN

 

EXERCISE NOTICE

 

Reliant Pharmaceuticals, Inc.

110 Allen Road

Liberty Corner, New Jersey  07938

 

Attention: 
Secretary

 

1.                                       Exercise
of Option. Effective as of today,                            ,
             ,
the undersigned (“Participant”) hereby
elects to exercise Participant’s option to purchase            
shares of Common Stock (the “Shares”)
of Reliant Pharmaceuticals, Inc. (the “Company”)
under and pursuant to the Reliant Pharmaceuticals, Inc. 2004 Equity
Incentive Plan (the “Plan”) and the
Option Agreement dated                            ,
             ,
(the “Option Agreement”).

 

2.                                       Representations
of Participant. Participant, without further action on his or her part, by purchase of
the Shares agrees to be deemed a party to, a signatory of and bound by the
Stockholders’ Agreement dated April 1, 2004 (the “Stockholders’ Agreement”), and the Shares
shall be subject to such rights and restrictions as contained therein.
Participant acknowledges that he or she has received, read and understood the
Plan, the Option Agreement, the Stockholders’ Agreement, and this Exercise
Notice 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.

 

3.                                       Rights
and Obligations as a Stockholder. Until the stock certificate evidencing
such Shares is issued (as evidenced by the appropriate entry on the books of
the Company or of a duly authorized transfer agent of the Company), no right to
vote or receive dividends or any other rights as a stockholder shall exist with
respect to Shares subject to the Option, notwithstanding the exercise of the
Option. The Company shall issue (or cause to be issued) such stock certificate
promptly after the Option is exercised. No adjustment will be made for a
dividend or other right for which the record date is prior to the date the
stock certificate is issued.

 

Participant
shall enjoy rights as a stockholder until such time as Participant disposes of
the Shares or the Company and/or its assignee(s) exercises the Right of First
Refusal hereunder. Upon such exercise, Participant shall have no further rights
as a holder of the Shares so purchased except the right to receive payment for
the Shares so purchased in accordance with the provisions of this Agreement,
and Participant shall forthwith cause the certificate(s) evidencing the Shares
so purchased to be surrendered to the Company for transfer or cancellation.

 

 

4.                                       Participant’s
Rights to Transfer Shares.

 

(a)                                  Limitations
on Transfer. Participant may transfer Shares subject to the
restrictions contained in this Section 4 and the Stockholders’ Agreement;
provided that prior to a Public Offering (as defined in Section 4(d)) no
Shares may be transferred (i) to a direct competitor of the Company
as determined by the Board, or (ii) for consideration other than cost.

 

(b)                                 Company’s
Right of First Refusal. Before any Shares 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 Shares on the terms and conditions set forth in this Section 4 (the “Right of First Refusal”).

 

(i)                                     Notice
of Proposed Transfer. The Holder of the Shares shall deliver to the Company
a written notice (the “Notice”)
stating:  (i) the Holder’s bona fide
intention to sell or otherwise Transfer such Shares; (ii) the name of each
proposed Participant or other transferee (“Proposed Transferee”);
(iii) the number of Shares to be Transferred to each Proposed Transferee;
and (iv) the bona fide cash price for which the Holder proposes to
Transfer the Shares (the “Offered Price”),
and the Holder shall offer the Shares 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 Shares 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 Shares
repurchased under this Section shall be the Offered Price. If the Offered
Price includes consideration other than cash, the cash equivalent value of the
non-cash consideration will be determined by the Committee in good faith.

 

(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 Shares 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 or other restrictions on transfer contained in the
Stockholders’ Agreement, the Holder may sell or otherwise Transfer such
Shares 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 to the provisions
of this Section and shall continue to apply to the Shares in the hands of 

 

2

 

such Proposed Transferee. If the Shares 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 Shares 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 Stockholders’ Agreement.

 

(c)                                  Exception
for Certain Family Transfers. Anything to the contrary contained in this Section notwithstanding,
the Transfer of any or all of the Shares during the Participant’s lifetime or
on the Participant’s death by will or intestacy to the Participant’s Immediate
Family (as defined in the Option Agreement) shall be exempt from the Right of
First Refusal. In such case, the transferee or other recipient shall receive
and hold the Shares so Transferred subject to the provisions of this Section 4,
Section 5,  and the Stockholders’
Agreement, as applicable, and there shall be no further Transfer of such Shares
except in accordance with the terms of this Section.

 

(d)                                 Termination
of Right of First Refusal. The Right of First Refusal and the restrictions
on transfer set forth in Section 4(a) shall terminate as to all
Shares ninety (90) days after a sale of Common Stock to the general public
pursuant to a registration statement filed with and declared effective by the
Securities and Exchange Commission under the Securities Exchange Act of 1934,
as amended (a “Public Offering”).

 

5.                                       Company
Call Right.

 

(a)                                  If
Participant ceases to provide services to the Company and its Subsidiaries for
any reason, the Company shall have the right to purchase any or all of the
Shares then held by a Holder at a price equal to the  Fair
Market Value (as defined in the Plan) of the Shares on the date on which the
Participant ceases to provide such services (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 provide services to the Company and its Subsidiaries, 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 Shares 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 provide services to the Company and its
Subsidiaries, the Company Call Right shall terminate.

 

(e)                                  The
Company Call Right shall terminate as to all Shares ninety (90) days after a
Public Offering.

 

3

 

6.                                       Lock-Up
Period. Participant hereby agrees that if so requested by the Company (or
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,
Participant shall not sell or otherwise transfer any Shares 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.

 

7.                                       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 C.

 

8.                                       Restrictive
Legends and Stop-Transfer Orders.

 

(a)                                  Legends.
Participant understands and agrees that the Company shall cause the legends set
forth below or legends substantially equivalent thereto, to be placed upon any
certificate(s) evidencing ownership of the Shares together with any other
legends that may be required by state or federal securities laws:

 

THE SECURITIES
REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933
(THE “ACT”) AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED
OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER THE ACT OR, IN THE OPINION OF
COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER OF THESE SECURITIES,
SUCH OFFER, SALE OR TRANSFER, PLEDGE OR HYPOTHECATION IS IN COMPLIANCE
THEREWITH.

 

THE SHARES
REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER
AND RIGHT OF FIRST REFUSAL OPTIONS HELD BY THE ISSUER OR ITS ASSIGNEE(S) AS SET
FORTH IN THE EXERCISE NOTICE AND THE STOCKHOLDERS AGREEMENT DATED APRIL 1, 2004, AS AMENDED
FROM TIME TO TIME BY AND BETWEEN THE ISSUER AND THE ORIGINAL HOLDER OF
THESE SHARES, A COPY OF WHICH MAY BE OBTAINED AT THE PRINCIPAL OFFICE OF
THE ISSUER. SUCH TRANSFER RESTRICTIONS AND 

 

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RIGHT OF FIRST
REFUSAL ARE BINDING ON TRANSFEREES OF THESE SHARES.

 

(b)                                 Stop-Transfer
Notices. Participant agrees that, in order to ensure compliance with the
restrictions referred to herein, the Company may issue appropriate “stop
transfer” instructions to its transfer agent, if any, and that, if the Company
transfers its own securities, it may make appropriate notations
to the same effect in its own records.

 

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

 

9.                                       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, successors, and assigns.

 

10.                                 Interpretation.
Any dispute regarding the interpretation of this Agreement shall be submitted
by Participant or by the Company forthwith to the Company’s Board of Directors
or committee thereof that is responsible for the administration of the Plan
(the “Committee”), which shall review such
dispute at its next regular meeting. The resolution of such a dispute by the
Committee shall be final and binding on the Company and on any Holder.

 

11.                                 Governing
Law; Severability. This Agreement shall be governed by and construed in
accordance with the laws of the State of Delaware excluding that body of law
pertaining to conflicts of law. Should any provision of this Agreement be
determined by a court of law to be illegal or unenforceable, the other
provisions shall nevertheless remain effective and shall remain enforceable.

 

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.                                 Delivery
of Payment. Participant herewith delivers to the Company the full Exercise
Price for the Shares, as well as any applicable withholding tax.

 

5

 

15.                                 Entire
Agreement. The Plan, Option Agreement and Stockholders’ Agreement are
incorporated herein by reference. This Agreement, the Plan, the Option
Agreement, and the Investment Representation Statement, if applicable,
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.

 

 

	
  Submitted by:

  	
  Accepted by:

  
	
   

  	
   

  
	
  PARTICIPANT:

  	
  RELIANT
  PHARMACEUTICALS, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  Its:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

6

 

EXHIBIT B

 

INVESTMENT REPRESENTATION
STATEMENT

 

	
  PARTICIPANT

  	
  :

  	
   

  
	
   

  	
   

  	
   

  
	
  COMPANY

  	
  :

  	
  RELIANT PHARMACEUTICALS, INC

  
	
   

  	
   

  	
   

  
	
  SECURITY

  	
  :

  	
  COMMON STOCK

  
	
   

  	
   

  	
   

  
	
  AMOUNT

  	
  :

  	
   

  
	
   

  	
   

  	
   

  
	
  DATE

  	
  :

  	
   

  
				

 

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 is acquiring
these Securities for investment for Participant’s own account only and not with
a view to, or for resale in connection with, any “distribution”
thereof within the meaning of the Securities Act of 1933, as amended (the “Securities Act”).

 

(b)                                 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
further acknowledges and understands that the Company is under no obligation to
register the Securities.

 

(c)                                  Participant
is familiar with the provisions of Rule 701 and Rule 144, each
promulgated under the Securities Act, which, in substance, permit limited
public resale of “restricted securities”
acquired, directly or indirectly from the issuer thereof, in a non-public
offering (or held by any affiliate of the issuer), subject to the satisfaction
of certain conditions. Rule 701 provides that if the issuer qualifies
under Rule 701 at the time of the grant of the Option to the Participant,
the exercise will be exempt from registration under the Securities Act. In the
event the Company becomes subject to the reporting requirements of Section 13
or 15(d) of the Securities Exchange Act of 1934, ninety (90) days
thereafter (or such longer period as any 

 

 

market stand-off agreement may require) the Securities exempt
under Rule 701 may be resold, subject to the satisfaction of certain
of the conditions specified by Rule 144, including:  (1) the resale being made through a
broker in 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); and, in the case of an affiliate, (2) the
availability of certain public information about the Company, (3) the
amount of Securities being sold during any three (3) month period not
exceeding the limitations specified in Rule 144(e), and (4) the
timely filing of a Form 144, if applicable.

 

In the
event that the Company does not qualify under Rule 701 at the time of
grant of the Option, then the Securities may be resold in certain limited
circumstances subject to the provisions of Rule 144, which
requires the resale to occur not less than one year after the later of the
date the Securities were sold by the Company or the date the Securities were
sold by an affiliate of the Company, within the meaning of Rule 144; and,
in the case of acquisition of the Securities by an affiliate, or by a
non-affiliate who subsequently holds the Securities less than two (2) years,
the satisfaction of the conditions set forth in sections (1), (2), (3) and
(4) of the paragraph immediately above.

 

(d)                                 Participant
further understands that in the event all of the applicable requirements of Rule 701
or 144 are not satisfied, registration under the Securities Act, compliance
with Regulation A, or some other registration exemption will be required; and
that, notwithstanding the fact that Rules 144 and 701 are not exclusive,
the Staff of the Securities and Exchange Commission has expressed its opinion
that persons proposing to sell private placement securities other than in a
registered offering and otherwise than pursuant to Rules 144 or 701 will
have a substantial burden of proof in establishing that an exemption from
registration is available for such offers or sales, and that such persons and
their respective brokers who participate in such transactions do so at their
own risk. Participant understands that no assurances can be given that any such
other registration exemption will be available in such event.

 

	
   

  	
  Signature
  of Participant:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Date:

  	
   

  	
  ,

  	
   

  	
   

  	
   

  
						

 

2

 

EXHIBIT C

 

CONSENT OF SPOUSE

 

I,                                                     ,
spouse of                                                     
have read and approve the foregoing Exercise Notice. In consideration of
granting of the right to my spouse to purchase Common Stock of  Reliant Pharmaceuticals, Inc. as set forth in the
Exercise Notice, I hereby appoint my spouse as my attorney-in-fact in respect
to the exercise of any rights under the Exercise Notice and agree to be bound
by the provisions of the Exercise Notice insofar as I may have any rights
in said Exercise Notice 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
Exercise Notice.

 

	
  Dated:

  	
   

  	
  ,

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