Document:

EXHIBIT 10.13

 

CONSULTING AGREEMENT

 

This
Consulting Agreement (the “Agreement”) made this 30th day of September
2006, is entered into by Reliant Pharmaceuticals, Inc., a Delaware corporation
with its principal place of business at 110 Allen Road, Liberty Corner, New
Jersey 07938 (the “Company”) and James R. Butler (the “Consultant”), who
resides at 109 Cutter Court, Pointe Verde, FL 32082.

 

INTRODUCTION

 

The Company
desires to retain the services of the Consultant and the Consultant desires to
perform certain Services (as defined below) for the Company. In consideration
of the mutual covenants and promises contained herein and other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged by the parties hereto, the parties agree as follows:

 

1.                                       SERVICES

 

The Consultant
agrees to perform during the Consultation Period (as defined below) such
consulting, advisory and related services to and for the Company as may be
reasonably requested from time to time by the Company. The Consultant shall
work primarily with or at the request of the Senior Vice President of Sales
& Marketing or such other employees of the Company as designated by
officers of the Company. Consultant shall determine the time and place that the
Services are rendered, so long as Consultant performs such services in a timely
and commercially reasonably manner. It is understood and agreed that Consultant
may pursue other opportunities and serve as an employee, director, officer or
consultant of other entities, provided that such services do not interfere with
the performance of Consultant’ duties under this Agreement or constitute a
breach of any other obligation of Consultant to the Company.

 

2.                                       TERM

 

This Agreement
shall commence on October 1, 2006 and shall continue through June 30, 2007 (the
“Consultation Period”). Notwithstanding the foregoing, the parties may
terminate the Consultation Period, effective immediately upon receipt of
written notice, if either party breaches or threatens to breach any provision
of Sections 5 or 6 of this Agreement. In addition, the Company may terminate
this Agreement without cause on thirty (30) days written notice to Consultant. The
Consultation Period may be extended on a month to month basis upon written
agreement of the parties.

 

3.                                       COMPENSATION

 

3.1           Consulting Fees

 

The Company
shall pay to the Consultant consulting fees of Twenty Two Thousand ($22,000)
per month for performing the Services. The Consulting Fees shall be paid
monthly in arrears, in U.S. Dollars, provided Consultant has submitted a
reasonably documented record of days and/or hours worked to the Company.

 

 

3.2           Reimbursement of Expenses

 

The Company
shall reimburse the Consultant for all reasonable expenses, including but not
limited to, consultation-related travel, mileage, lodging expenses, telephone
calls, photocopying and meals, incurred or paid by the Consultant in connection
with, or related to, the performance of Services under this Agreement. The
Consultant shall submit to the Company itemized monthly statements, in a form
satisfactory to the Company, of such expenses incurred in the previous month. Expense
reports shall be submitted to the Senior VP of Sales & Marketing for review
and approval. The Company shall pay to the Consultant amounts approved on each
such statement within thirty (30) days after receipt thereof with all expenses
to be reimbursed hereunder to be due within 30 days following the end of the
Consultation Period.

 

3.3           Benefits

 

The Consultant
shall not be entitled to any benefits, coverages or privileges, including,
without limitation, social security, unemployment, 401 k, medical insurance or
pension payments, made available to the employees of the Company except as
otherwise may be agreed in writing between Consultant and Company.

 

4.                                       COOPERATION

 

The Consultant
shall use his best efforts in the performance of his obligations under this
Agreement and shall discharge his responsibilities in a diligent and faithful
manner, consistent with sound business practices and legal obligations. The Company
shall provide such access to its information and property as may be reasonably
required, in the Company’s sole discretion, in order to permit the Consultant
to perform his obligations hereunder. The Consultant shall cooperate with the
Company’s personnel, shall not interfere with the conduct of the Company’s
business and shall observe all rules, regulations and security requirements of
the Company concerning the safety of persons and property.

 

5.                                       PROPRIETARY
INFORMATION

 

5.1           Proprietary Information

 

(a)           The
Consultant agrees that all information, whether or not in writing, of a
private, secret or confidential nature concerning the Company’s business,
business relationships or financial affairs (collectively, “the Company’s
Proprietary Information”) which is disclosed to Consultant is and shall be the
exclusive property of the Company. By way of illustration, but not limitation,
the Company’s Proprietary Information may include inventions, products,
developments, plans, research data, clinical data, financial data, personnel
data and computer programs. The Consultant will not disclose any of the Company’s
Proprietary Information to any person or entity other than employees of the
Company or employees of Consultant or use the same for any purposes (other than
in the performance of his duties as a consultant of the Company) without
written approval by an executive officer of the Company, unless and until such
of the Company’s Proprietary Information has become public knowledge without
fault by the Consultant.

 

 

(b)           The
Consultant agrees that all files letters, memoranda, reports, records, data,
sketches, drawings, laboratory notebooks, program listings or other written,
photographic or other tangible material containing the Company’s Proprietary
Information relating to the Services performed hereunder, whether created by
the Consultant or others during the Consultation Period, shall be and are the
exclusive property of the Company. All such materials or copies thereof and all
tangible property of the Company in the custody or possession of the Consultant
shall be delivered to the Company upon the earlier of (i) a request by the
Company; or (ii) termination of this Agreement. After such delivery, the
Consultant shall not retain any such materials or copies thereof or any such
tangible property.

 

(c)           The
parties agree that Consultant’s obligation not to disclose or to use
information and materials of the types set forth in paragraphs (a) and (b)
above, and its obligation to return materials and tangible property, set forth
in paragraph (b) also extends to such types of information, materials and
tangible property of customers or suppliers of the Company, or other third
parties who may have disclosed or entrusted the same to the Company.

 

(d)           The
parties’ obligations under this Section 5.1 shall not apply to any information
that (i) is or becomes known to the general public under circumstances
involving no breach by the Consultant of the terms of this Section 5.1 or (ii)
is approved for release by written authorization of the Company.

 

(e)           The
Consultant represents that the retention as a consultant with the Company and
performance under this Agreement does not, and shall not breach any agreement
that obligates the Consultant to keep in confidence any trade secrets or
confidential or proprietary information of his or of any other party or to
refrain from competing, directly or indirectly, with the business of any other
party. The Consultant shall not disclose to the Company any trade secrets or
confidential or proprietary information of any other party.

 

5.2           Remedies

 

The parties
acknowledge that any breach of the provisions of this Section 5 would result in
serious and irreparable injury to the non-breaching party for which the parties
may not be adequately compensated by monetary damages alone. The parties agree,
therefore, that, in addition to any other remedy the Company may have, the
Company shall be entitled to temporary and permanent injunctive relief,
including, without limitation, specific performance, with respect to this
Section 5 against Consultant (to the extent permitted by law) without the
requirements of proving actual damages or posting a bond or other form of
security. In the event Company is successful in enforcing this provision,
Company shall be entitled to reimbursement from Consultant of Company’s
reasonable attorney’s fees and costs.

 

6.                                       RESTRICTIVE
COVENANT

 

Consultant
represents and warrants that during the Consultation Period, Consultant will
not engage in or otherwise become involved in, directly or indirectly,
providing consulting or any other services for any other company in or which
provides services to the pharmaceutical or biopharmaceutical industries without
the express prior written consent of the Company. Consultant further agrees that
during the Consultation Period and for two (2) years thereafter not

 

 

to (a) solicit
or divert business or business opportunities from the Company; (b) attempt to
convert any person or entity who or which is a customer or account of the
Company during the term of this Agreement or (c) solicit or hire any current
employee of the Company or any person hired by the Company during the
Consultation Period. Consultant acknowledges that this non-compete and
non-solicitation agreement is reasonable under the circumstances and necessary
for the Company and that the Company would suffer irreparable harm and other
damage in the event of a breach hereof. In the event of a breach or threatened
breach by Consultant of this provision, the Company shall be entitled to
temporary and permanent injunctive relief, including, without limitation,
specific performance, against Consultant (to the extent permitted by law)
without the requirements of proving actual damages or posting a bond or other
form of security. In the event Company is successful in enforcing this
provision, Company shall be entitled to reimbursement from Consultant of
Company’s reasonable attorney’s fees and costs.

 

7.                                       INDEPENDENT
CONTRACTOR STATUS

 

The Consultant
shall perform all Services under this Agreement as an “independent contractor”
of and not as an employee or agent of the Company. Nothing in this Agreement
shall be construed to create an employment relationship between the parties. The
Consultant is not authorized to assume or create any obligation or
responsibility, express or implied, on behalf of, or in the name of, the
Company or to bind the Company in any manner. Consultant shall be solely
responsible for and shall file, on a timely basis, tax returns and payments
required to be filed with or made to any taxing authority with respect to his
performance of Services hereunder and hold Company harmless with respect
thereto. No tax of any kind shall be withheld or paid by Company on behalf of
Consultant and Consultant shall not be treated as an employee with respect to
the Services performed hereunder for federal, state and local tax purposes. As
an independent contractor, Consultant will be responsible for complying with
all FLSA, FICA, FUTA, IRS or other state and local tax and unemployment obligations
with respect to this Agreement or payments made by the Company pursuant hereto.

 

8.                                       NOTICES

 

All notices
required or permitted under this Agreement shall be in writing and shall be
deemed effective upon personal delivery or upon deposit in the United States
Post Office, by registered or certified mail, postage prepaid, addressed to the
other party at the address shown above, or at such other address or addresses
as either party shall designate to the other in accordance with this Section.

 

9.                                       PRONOUNS

 

Whenever the
context may require, any pronouns used in this Agreement shall include the
corresponding masculine, feminine or neuter forms, and the singular forms of
nouns and pronouns shall include the plural, and vice versa.

 

10.                                 CONFLICTS OF INTEREST

 

Consultant
hereby warrants that there is no conflict of interest between Consultant’s
current employment or business activities, if any, and the activities to be
performed hereunder. Consultant hereby represents and warrants that he is not a
party to any agreement, contract or

 

 

understanding,
and that no facts or circumstances exist, which would restrict or prohibit
Consultant from undertaking or performing any of the obligations under this
Agreement. The representations and warranties of this Article shall remain in
effect throughout the term of this Agreement. Consultant shall advise Company
immediately if a conflict or potential conflict of interest arises in the
future.

 

11.                                 ENTIRE AGREEMENT

 

This Agreement
(and the letter agreement referred to in Section 15.4 below) constitutes the
entire agreement between the parties and supersedes all prior agreements and
understandings, whether written or oral, relating to the subject matter of this
Agreement.

 

12.                                 AMENDMENT

 

This Agreement
may be amended or modified only by a written instrument executed by both the
Company and the Consultant.

 

13.                                 SUCCESSORS AND ASSIGNS

 

This Agreement
shall be binding upon, inure to the benefit of and be enforceable by the
parties hereto, and their respective heirs, personal representatives,
successors and permitted assigns. Consultant may not assign any of his rights
or obligations under this Agreement without the prior written consent of the
Corporation, and any purported assignment without such consent shall be void. The
Corporation may assign its rights and obligations hereunder without Consultant’s
consent to (i) its affiliates as long as the Corporation shall remain liable to
Consultant for its liabilities and obligations hereunder or (ii) a successor to
all or a material portion of its assets or business, whether in a merger, sale
of stock, sale of assets or other transaction.

 

14.                                 MISCELLANEOUS

 

14.1         No Waiver

 

No delay or
omission by any party in exercising any right under this Agreement shall
operate as a waiver of that or any other right. A waiver or consent given by
any party on any one occasion shall be effective only in that instance and
shall not be construed as a bar or waiver of any right on any other occasion.

 

14.2         Participation in Equity Plan

 

Notwithstanding
anything herein contained to the contrary, during the Consultation Period, any
options received by James R. Butler while employed by the Company prior to the
Consultation Period shall be governed by the Company’s Equity Incentive Plans
pursuant to which any such options shall continue to vest during the
Consultation Period and vested options must be exercised within thirty (30)
days following termination of this Agreement.

 

 

14.3         Captions

 

The captions
of the sections of this Agreement are for convenience of reference only and in
no way define, limit or affect the scope or substance of any section of this
Agreement.

 

14.4         Enforceability

 

In the event
that any provisions of this Agreement shall be invalid, illegal or otherwise
unenforceable, the validity, legality and enforceability of the remaining
provisions shall in no way be affected or impaired thereby.

 

14.5         Confidentiality of the Agreement

 

Consultant
shall not make any publicity releases, interviews or other disclosure or
dissemination of any information concerning this Agreement or its terms, or any
party’s performance hereunder, to any person or entity without the prior
written approval of the Company; provided, however,
that this provision shall not prevent disclosure (a) as required by applicable
law or (b) to any party’s financial advisors or legal advisors who are bound by
similar terms of confidentiality.

 

14.6         Governing Law

 

The provisions
of this Agreement shall be construed in accordance with the laws of the State
of Delaware, without reference to its internal conflict of laws principles.

 

14.7         Jurisdiction and Venue

 

The parties
irrevocably agree that all actions to enforce an arbitrator’s decision pursuant
to Section 15.9 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 15.9 of this Agreement.

 

14.8         WAIVER OF JURY TRIAL

 

EMPLOYEE
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.

 

14.9         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 Employee, on the one hand, and Employer, 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 Employer and employee 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.

 

 

IN WITNESS WHEREOF, the parties hereto have
executed this Consulting Agreement as of the day and year set forth above.

 

	
   

  	
  RELIANT
  PHARMACEUTICALS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
  JOSEPH
  ZAKRZEWSKI

  
	
   

  	
   

  	
  CHIEF
  OPERATING OFFICER

  
	
   

  	
   

  	
   

  
	
   

  	
  CONSULTANT

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/

  
	
   

  	
  James R.
  ButlerEXHIBIT 10.14

 

CHANGE OF CONTROL AGREEMENT

 

THIS CHANGE OF CONTROL AGREEMENT (“Agreement”) dated as of March 19, 2002 is entered by and
between Vincent Angotti (“Executive”) and
Reliant Pharmaceuticals, LLC, a Delaware limited liability company (the “Company”).

 

WITNESSETH:

 

WHEREAS, Executive is an employee of the Company and
has made and is expected to continue to make major contributions to the short
and long term profitability, growth and financial strength of the Company;

 

WHEREAS, the Company recognizes that the possibility
of a Change of Control (as defined below) exists; and

 

WHEREAS, the Company believes it is in the best
interests of the Company and its Members to provide an incentive for Executive’s
continued employment and assistance in consummating any such Change of Control.

 

NOW THEREFORE, in exchange for the good and valuable
consideration set forth herein, the adequacy of which is specifically
acknowledged, the Company and Executive hereby agree as follows:

 

1.                                       Certain
Defined Terms. Capitalized terms used but not otherwise defined in
this Agreement have the meanings ascribed to them in the LLC Agreement. In
addition to terms defined elsewhere in this Agreement, the following
capitalized terms shall have the meanings ascribed below when used in this
Agreement:

 

(a)                                  “Benefits” shall mean medical, dental, and group term life
plans as are established by the Company and as in effect from time to time
applicable to executives of the Company or any Successor.

 

(b)                                 “Cause” shall mean termination by the Company of the
Executive’s relationship with the Company due to (i) the commission by the
Executive of an act of fraud or embezzlement against the Company or any
affiliate thereof, (ii) a breach by the Executive of one or more of the
following duties to the Company:  (A) the
duty of loyalty, (B) the duty not to engage in self-dealing with respect to the
Company’s assets, properties or business opportunities, except as approved in
writing by the Board, (C) the duty of honesty or (D) any other fiduciary duty
which the Executive owes to the Company, (iii) a conviction of the Executive
(or a plea of nolo contendere in lieu thereof)
for (A) a felony or (B) a crime involving fraud, dishonesty or moral turpitude,
(iv) intentional misconduct with respect to his duties to the Company,
including, but not limited to, knowing and intentional violation by the
Executive of written policies of the Company, including policies regarding
confidential information and non-competition, or specific directions of the
Board or superior officers of the Company, which policies or directives are

 

 

neither illegal (or do not involve illegal conduct) nor do
they require the Executive to violate reasonable business ethical standards, or
(v) the failure of the Executive, after written notice from the Company, to
render services to the Company in accordance with his employment or other
relationship with the Company, which failure is not cured within 10 days of
receipt of such notice.

 

(c)                                  “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 (an “Asset Sale”);
(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 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.

 

(d)                                 “Closing Date” shall mean the effective date of a Change of
Control.

 

(e)                                  “Common Units” shall mean the Class A common units of the
Company.

 

(f)                                    “Company Note” shall mean that certain promissory note dated
as of May 11, 2001 in the principal amount of $200,000 executed by
Executive in favor of the Company.

 

(g)                                 “Consideration” shall mean the consideration (whether cash,
stock or other property) actually received by (i) the Members of the Company in
a Change of Control for or on account of their Units and (ii) employees or
former employees of the Company on account of their Options.

 

(h)                                 “Employment Agreement” shall mean the Employment Agreement
dated as of January 15, 2001 by and between the Company and Executive.

 

(i)                                     “Good Reason” shall mean (i) Good Reason within the meaning
of the Employment Agreement, (ii) Executive is not offered continued employment
with the successor entity in the Change of Control that is comparable in
compensation and generally comparable in position and duties (taking into
consideration the Change of Control) to Executive’s compensation, position and
duties in effect immediately prior to the Closing Date, (iii) following the
Closing Date and without Executive’s consent, Executive is relocated for at
least six (6) months by the Company (or its successor in the Change of Control)
to a location more than seventy-five (75) miles from Executive’s current
principal place of employment or (iv) in connection with an Asset Sale, failure
by the Successor to assume the Employment Agreement.

 

2

 

(j)                                     “Liquidation Preference” shall mean the sum of (a) the Series
A Liquidation Preference and (b) the Series B Liquidation Preference.

 

(k)                                  “LLC Agreement” shall mean the Second Amended and Restated
Limited Liability Company Operating Agreement of Reliant Pharmaceuticals, LLC,
dated as of February 21, 2002, among the Members named therein, as amended from
time to time.

 

(l)                                     “Option” shall mean outstanding options to purchase Common
Units granted pursuant to the Plan.

 

(m)                               “Plan” shall mean the Reliant Pharmaceuticals LLC Equity
Incentive Plan dated as of July 6, 2001, as amended.

 

(n)                                 “Restricted Units” shall mean Common Units acquired upon
exercise of any unvested Option or otherwise granted to the Executive under the
terms of or subject to the Plan.

 

(o)                                 “Successor” means a successor in interest to the Company or
the Company’s assets in a Change of Control.

 

(p)                                 “Value” means the total value of Consideration actually
received by the Series A Holders and Series B Holders, as the case may be, in a
Change of Control that would be applied in satisfaction of such holders’
Liquidation Preference.

 

2.                                       Term of
Agreement. This Agreement shall be effective on the Closing
Date for a period of nine (9) consecutive months immediately following the
Closing Date; provided, that any rights of Executive and/or the Company which
are triggered and accrue hereunder during the term of this Agreement shall
survive the termination of this Agreement to the extent so accrued.

 

3.                                       Amendment of
Employment Agreement. During the term of this Agreement,
any provisions of the Employment Agreement that are inconsistent with the terms
of this Agreement shall be amended to conform to the terms of this Agreement. Without
limiting the foregoing, it is specifically understood and agreed that (a)
during the term of this Agreement the definitions of Cause and Good Reason
contained herein shall supercede and replace those contained in the Employment
Agreement and (b) subject to the terms hereof, the Employment Agreement will
remain in full force and effect in accordance with its terms.

 

4.                                       Severance. If during
the term of this Agreement, Executive’s employment is terminated without Cause
or for Good Reason, then such termination shall be treated as a termination
without Cause or for Good Reason pursuant to the terms of the Employment
Agreement and the Executive shall be entitled to rights provided thereunder in
respect of such termination. In the event of an Asset Sale, the Company’s
obligations under the Employment Agreement to continue providing the Benefits
following a termination without Cause or for Good Reason shall cease, unless
otherwise required by law, and/or any Successor agrees to continue providing
such Benefits. In addition, if Executive becomes entitled to receive Benefits
under any subsequent employer’s benefit and/or welfare plans, the Company’s
obligations to continue the Benefits as a result of termination without Cause
or for Good Reason under the Employment Agreement shall cease.

 

3

 

5.                                       Bonus.

 

(a)                                  Subject to
Section 5(c) below, in the event that (i) a Change of Control occurs prior to
(A) the date the Company first offers its equity securities to the public
pursuant to an effective registration statement under the Securities Act of
1933, as amended, or (B) the date on which the Series A Holders and Series B
Holders convert 50% or more of their Series A Preferred Units and Series B
Preferred Units, respectively, to Common Units in accordance with Section 6.2
of the LLC Agreement, (ii) the Executive is terminated without Cause or
terminates his employment under the circumstances described in clauses (ii) or
(iii) of the definition of Good Reason, and (iii) upon the Change of Control
the Series A Holders and Series B Holders receive aggregate Value equal to at
least the Liquidation Preference, but not more than the Series A/B Liquidation
Preference Cap, then Executive shall have the right to receive a bonus equal to
one times (1x) his annual base salary in effect immediately prior to the Change
of Control (the “Bonus”); provided, that Executive
is employed by the Company on the Closing Date (or has been terminated without
Cause or has terminated his employment by the Company with Good Reason (as
defined in the Employment Agreement), in each case within the three month
period immediately prior to the Closing Date). In the event that the Series A
Holders and the Series B Holders receive Value in the Change of Control (1) of
less than the Liquidation Preference or (2) in excess of the Series A/B
Liquidation Preference Cap, in each case after giving effect to any bonus
payments made or to be made by Reliant pursuant to the terms of this Agreement
and other similar change of control agreements or severance agreements entered
into between the Company and the persons listed on Annex A attached
hereto, then, in either case, Executive shall
not be entitled to any Bonus.

 

The Bonus, if any, shall be (x)
payable upon the later of (1) ten business days following the termination of
Executive’s employment with the Company and (2) ten business days following the
Closing Date, (y) paid in a cash lump sum and (z) shall be in addition to and
not in substitution of any severance to which Executive is otherwise entitled
under the terms of the Employment Agreement.

 

(b)                                 Upon
becoming entitled to receive the Bonus and in consideration of the Company’s
agreement to pay such Bonus to Executive in accordance with Section 5(a) above,
immediately prior to the consummation of the Change of Control, (i) if the
Executive holds any Options, Executive shall forfeit all right to any Options
held by Executive and such Options shall be deemed cancelled effective
immediately prior to the Change of Control and (ii) if Executive holds Common
Units, such Common Units will be redeemed for an aggregate redemption price of
$1.00 by the Company and Executive shall have no further rights to such Common
Units with such Common Units being deemed cancelled immediately prior to the
Change of Control.

 

(c)                                  In the event
the Value of the Change of Control is reduced as a result of the payment made
by any claims of the acquiring Person based upon (i) breaches in
representations or warranties made by or on behalf of Reliant, or (ii) rights
of indemnification against Reliant or its Members in connection with the Change
of Control, as the case may be, (collectively, “Losses”),
such that the Value (as adjusted for such Losses) received by the Series A
Holders and the Series B Holders is less than the Liquidation Preference, then
Executive agrees to pay to the Series A Holders and the Series B Holders on a
pro rata basis the full amount of the Bonus. Bay City Capital Fund II, L.P. (“BCC Fund II”) on behalf of the Series A

 

4

 

Holders and the Series B Holders shall re-calculate the Value
after giving effect to any Losses, and in the event that the amount of such
Losses reduce the Value to an amount below the Liquidation Preference, BCC Fund
II shall inform Executive in writing of the total amount of such Losses and the
re-calculation of Value (the “Notice”). Within
10 business days of delivery of the Notice, Executive will remit to BCC Fund II
on behalf of the Series A Holders and the Series B Holders cash in the amount
of 50% of the Bonus and an unsecured recourse promissory note in the original
principal amount equal to 50% of the Bonus made in favor of BCC Fund II (not
individually, but rather as disbursement agent for the Series A Holders and the
Series B Holders) in form and substance reasonably satisfactory to BCC Fund II
(the “Bonus Repayment Note”), which Bonus
Repayment Note will provide, among others terms, for (i) interest at the rate
of the prime rate as announced by Bank of America, NA payable quarterly in
arrears, (ii) repayment of 50% of the original principal amount of the Bonus
Repayment Note, plus any accrued but unpaid
interest thereon 90 days following the date of the Note, (iii) repayment of the
balance of the Bonus Repayment Note, including any accrued but unpaid interest
thereon on the first anniversary of the Bonus Repayment Note and (iv)
prepayment of the Bonus Repayment Note without penalty or premium upon three
business days prior written notice to BCC Fund II. The foregoing
notwithstanding, in the event that Executive has used all of his Bonus to repay
the Company Note in accordance with its terms, 100% of the Bonus amount shall
be repayable by Executive pursuant to the terms of a Bonus Repayment Note. The
Series A Holders and the Series B Holders shall be third party beneficiaries to
the provisions of this Section 5(c).

 

6.                                       Vesting and
Option Exercise Period.

 

(a)                                  Notwithstanding
anything to the contrary contained in the Plan or the applicable Option or
Restricted Unit agreements between the Company and Executive, upon consummation
of Change of Control, Executive shall be fully vested in all of his Options and
Restricted Units as of the Closing Date. In addition to the foregoing, in the
event that the Executive’s Options or Restricted Units are exchanged in the
Change of Control for securities of a publicly traded entity, then upon such
exchange, such securities will be free from all call rights, repurchase rights
and transfer restrictions imposed by the Plan, any applicable Option agreement
and/or any applicable Restricted Unit agreement to the extent that such call
rights, repurchase rights and transfer restrictions would have terminated in
accordance with the terms of such Plan, Option agreement and/or Restricted Unit
agreement following the initial public offering of the Company’s securities.

 

(b)                                 Notwithstanding
anything to the contrary contained in the Plan or any applicable Option
agreement between the Company and the Executive, if the Executive’s employment
is terminated within the 12-month period following a Change of Control and
during any period in which the Executive is prohibited from exercising the
Option or selling any units or shares acquired upon exercise of the Option by
reason of the any Federal or state securities laws or the terms of a lock-up
agreement or similar agreement, then the period in which the Executive may
exercise such Option following his termination of employment shall be extended
until 30 days after the date the Executive is not so restricted from exercising
such Option and/or selling any units or shares acquired upon exercise of such
Option.

 

7.                                       Company Note. Executive
agrees to apply toward the payment of the Company Note to the extent necessary
(i) all cash Consideration received in the Change of Control for his

 

5

 

Common Units, and/or Options and any cash proceeds receive on
any non-cash Consideration received in respect thereof and (ii) any severance
or other termination payments to which Executive may become entitled under this
Agreement or his Employment Agreement, including, without limitation, the Bonus
payable under Section 5. To the extent that the any amount due under the
Company Note remains unpaid after application of the preceding sentence, then
Executive will remain liable to repay the full amount of any accrued and unpaid
interest and up to 50% of the original principal amount of the Company Note in
accordance with the terms of the Company Note.

 

8.                                       280G
Provisions.

 

(a)                                  This Agreement shall not be effective and shall be of no force and effect
unless and until this Agreement has been approved by the persons holding more
that 75% of the voting power of the Company in accordance with Section
280G(b)(5)(B) of the Internal Revenue Code of 1986, as amended (the “Code”); provided, however, that (i) in the event the Company
determines that the provisions of Section 280G of the Code do not apply to the
Company due to its status as a limited liability company, or (ii) shares of the
Company are readily tradable on an established securities market immediately
prior to such Change of Control then no such approval shall be required.

 

(b)                                 Anything in
this Agreement to the contrary notwithstanding, the aggregate payments or
distributions by the Company or any of its affiliates to or for the benefit of
Executive, whether paid or payable or distributed or distributable pursuant to
the terms of this Agreement or otherwise pursuant to or by reason of any other
agreement, policy, plan, program or arrangement, including without limitation
any Option, Restricted Units, the Plan or similar right, or the lapse or
termination of any restriction on or the vesting or exercisability of any of
the foregoing (collectively, a “Payment”),
shall not exceed the maximum Payments which Executive can receive without being
subject to the excise tax imposed by Section 4999 of the Code (or any successor
provision thereto) by reason of being considered “contingent on a change in
ownership or control” of the Company, within the meaning of Section 280G of the
Code (or any successor provision thereto) or to any similar tax imposed by
state or local law, or any interest or penalties with respect to such tax (such
tax or taxes, together with any such interest and penalties, being hereafter
collectively referred to as the “Excise Tax”),
and the Payments shall be reduced to the extent necessary so that the Executive
shall not incur any Excise Tax.

 

(c)                                  The
determination of whether or not the Payments shall subject the Executive to the
Excise Tax and/or the amount of reduction of any such Payments in order to
comply with the requirements of Section 8(b) shall be made by the certified
pubic accounting firm which serves as the Company’s outside auditors
immediately prior to the Change of Control (the “Accounting
Firm”). The Company and Executive shall each provide the Accounting
Firm access to and copies of any books, records and documents in the possession
of the Company or Executive, as the case may be, reasonably requested by the
Accounting Firm, and otherwise cooperate with the Accounting Firm in connection
with the preparation and issuance of the determination and calculations
contemplated by Section 8(b). Any final determination by the Accounting Firm
shall be final and binding upon  the Company
and Executive.

 

6

 

(d)                                 To the
extent possible, the Payments shall be reduced first from any cash payments
such as Bonus, and severance payable to Executive. If after reduction of all
cash Payments, the Payments would still cause Executive to incur the Excise
Tax, then to the extent necessary Executive’s vesting in such portion of the
Options and or Restricted Units which would result in the Excise Tax not being
triggered shall not be accelerated.

 

9.                                       Confidentiality. Executive
agrees not to discuss or disclose the terms or existence of this Agreement, any
contemplated Change of Control or the status of any discussion or negotiation
related to a possible Change of Control with or to any person, agency,
institution, company, or other entity (including, without limitation, a
potential buyer of any asset of the Company and any of such buyer’s directors,
officers, representatives, agents, counsel or accountants) unless the officers
of Company responsible for negotiating the Change of Control agree in writing
to such disclosure in advance, provided that
Executive may, without such permission, make such disclosures as are required
by courts or government agencies of appropriate jurisdiction or otherwise by
law, and disclose the terms of this Agreement to his attorney(s),
accountant(s), tax advisor(s), and other professional service provider(s), as
reasonably necessary, and to his spouse and immediate family. However, to the
extent Executive permissibly discloses information about the terms of his
Agreement, Executive agrees to instruct such person(s) that the terms of this
Agreement are strictly confidential and are not to be revealed to anyone else
except as required by law.

 

10.                                 Cooperation. Executive
hereby agrees to cooperate with the Company and its Members in their efforts to
negotiate and consummate any Change of Control. Without limiting the foregoing,
Executive agrees that (a) he shall make himself available at the Company’s
reasonable request from time to time at such times and in such places as
Executive and the Company may reasonably determine to answer questions and
provide information to potential parties to a Change of Control in a manner
consistent with the policies, procedures and guidelines established by the
Company and its advisors and disclosed to Executive and (b) to the extent
requested to do so by the Finance Committee of the Board of Mangers, he shall
otherwise support any Change of Control and assist in connection with the
negotiation and consummation of any Change of Control.

 

11.                                 Injunctive
Relief. Executive agrees that his failure to comply with Sections 9
and 10 of this Agreement will cause irreparable harm to the Company, and that
money damages would not adequately compensate the Company for such harm. Executive
hereby agrees that in addition to any other remedy that may be available at law
or equity hereunder or otherwise, the Company shall be entitled to injunctive
or other equitable relief to restrain any breach or attempted breach by him of
such terms and the Company shall be entitled to apply for such relief to any
court of competent jurisdiction without the posting of any bond or other
security.

 

12.                                 Successors
and Binding Agreement.

 

(a)                                  This
Agreement will be binding upon and inure to the benefit of the Company and any
successor to the Company, including, any Successor (and such successor shall
thereafter be deemed the “Company” for the purpose of this Agreement), but will
not otherwise be assignable, transferable or delegable by the Company.

 

7

 

(b)                                 This
Agreement will inure to the benefit of and be enforceable by the Executive’s
personal or legal representatives, executors, administrators, successors,
heirs, distributees and legatees.

 

(c)                                  This
Agreement is personal in nature and neither of the parties hereto shall,
without the consent of the other, assign, transfer or delegate this Agreement
or any rights or obligations hereunder, except as expressly provided in Section
12(a) and (b). Without limiting the generality or effect of the foregoing, the
Executive’s right to receive payments hereunder will not be assignable,
transferable or delegable, whether by pledge, creation of a security interest,
or otherwise, other than by a transfer by Executive’s will or by the laws of
descent and distribution and, in the event of any attempted assignment or
transfer contrary to this Section 12(c), the Company shall have no liability to
pay any amount so attempted to be assigned, transferred or delegated.

 

13.                                 Miscellaneous.

 

(a)                                  Taxes. All
amounts payable hereunder shall be subject to applicable federal, state and
local tax withholding.

 

(b)                                 Severability. If any
provision of this Agreement is held by a court of competent jurisdiction 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.

 

(c)                                  Governing
Law; Jurisdiction. This 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, except
with respect to matters of law concerning the internal corporate affairs of any
corporate entity which is a party to or the subject of this Agreement, and as
to those matters, the law of the jurisdiction under which the respective entity
derives its powers shall govern. The parties irrevocably agree that all actions
to enforce an arbitrator’s decision pursuant to Section 13(f) of this Agreement
may be instituted and litigated in federal, state or local courts sitting in
the Borough of Manhattan, City of New York, New York and each of such parties
hereby consents to the non-exclusive jurisdiction and venue of such court and
waives any objection based on forum non conveniens.

 

(d)                                 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
13(f) OF THIS AGREEMENT.

 

(e)                                  Notices. Any
notices required or permitted to be sent hereunder shall be delivered
personally, via facsimile transmission (with confirmation), or mailed, via
certified mail (return receipt requested), or delivered by overnight courier
service to the following addresses, or such other address as any party hereto
designates by written notice to the Company, and shall be deemed to have been
given upon delivery, if delivered personally or via facsimile, three (3)

 

8

 

business days after mailing, if mailed, or one (1) business
day after delivery to the courier, if delivered by overnight courier service:

 

if to the Company to:

 

Reliant Pharmaceuticals,
LLC

110 Allen Road

Liberty Corner, New
Jersey 07938

Attention:  President

Telecopy:   (908) 542-9406

 

with
copies sent concurrently to:

 

Reliant Pharmaceuticals,
LLC

110 Allen Road

Liberty Corner, New
Jersey 07938

Attention:  General Counsel

Telecopy:   (908) 542-9406

 

Latham & Watkins

Sears Tower, Suite 5800

233 South Wacker Drive

Chicago, Illinois 60606

Attention:  Michael A. Pucker

Telecopy:  (312) 993-9767

 

If to Executive, to him at his most recent address as
reflected in the Company’s records. Either party may change its address for
notice under this Section 13(e) upon written notice to the other party, such
notice to be effective upon receipt.

 

(f)                                    Arbitration. Except as
provided in Section 13(c) hereof, 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 the Borough of Manhattan, City of New York, New York,
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
Executive, 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 Company and Executive 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

 

9

 

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.

 

(g)                                 Attorneys’
Fees. If any arbitration is brought under Section 13(f), the
arbitrator may award the successful or prevailing party reasonable attorneys’
fees and other costs incurred in that action or proceeding, in addition to any
other relief to which it may be entitled. If any other proceeding is brought by
one party against the other in connection with or relating in any manner to
this Agreement, or to enforce an arbitration award, the successful or
prevailing party (as determined by an independent third party, e.g. a judge) shall be entitled to recover its reasonable
attorneys’ fees and other costs incurred in that action or proceeding, in
addition to any other relief to which it may be entitled.

 

(h)                                 Entire
Agreement. This Agreement constitutes the entire understanding
among all of the parties hereto and supersedes any prior understandings and
agreements, written or oral, among them respecting the subject matter hereof.

 

(i)                                     Amendment. This
Agreement may be amended only by a written instrument signed by each of the
parties hereto.

 

(j)                                     Not
Compensation. Amounts payable pursuant to this Agreement shall not
constitute “compensation” for purposes of any pension, welfare or other benefit
plan or policy of the Company unless expressly provided for therein.

 

(k)                                  Counterparts. This
Agreement may be executed simultaneously in two or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute
one and the same instrument.

 

(l)                                     Members
Discretion to Consummate a Change of Control. Executive agrees
and acknowledges that neither the Company nor the Members are under any
obligation to in respect of consummating any Change of Control.

 

(m)                               Opportunity
to Review. The Company and Executive have carefully read this
Agreement in its entirety; fully understand and agree to its terms and
provisions; and intend and agree that it is final and binding on all parties.

 

(n)                                 No
Presumption Against Drafter. Each of the parties hereto has
jointly participated in the negotiation and drafting of this Agreement. In the
event there arises any ambiguity or question of intent or interpretation with
respect to this Agreement, this Agreement shall be construed as if drafted
jointly by the parties hereto and no presumptions or burdens of proof shall
arise favoring any party by virtue of the authorship of any of the provisions
of this Agreement.

 

[Signature page to Change
of Control Agreement Follows Immediately]

 

10

 

[Signature Page to Change
of Control Agreement]

 

IN WITNESS WHEREOF, and intending to be legally bound,
the Company and Executive have executed the foregoing as of the date first
written above.

 

	
   

  	
  EXECUTIVE

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Vincent Angotti

  
	
   

  	
   

  	
   

  
	
   

  	
  RELIANT PHARMACEUTICALS, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
					

 

 

	
  Agreed
  to and Accepted Solely

  	
   

  
	
  as
  to Section 5(c) hereof:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  BAY CITY CAPITAL FUND II, L.P.

  	
   

  
	
   

  	
   

  
	
  By:
  Bay City Capital Management II, L.P.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
				

 

11

 

ANNEX A

to 

Change of Control Agreement

 

Stefan Aigner

George Bobotas

A. Steven Franchak

Gregory Fulton

Lawrence Gyenes

Joseph Krivulka

Michael Lerner

Neil Manowitz

Keith Rotenberg

Gary Talarico

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