Document:

EXHIBIT 10.9

 

January 1, 2004

 

PERSONAL
AND CONFIDENTIAL

 

Robert
Ferguson III

106
Witham Park Court

Cary,
North Carolina 27511

 

Dear
Bob:

 

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

 

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

 

	
  Initial Start Date:

  	
  

  January 1, 2005

  
	
   

  	
   

  
	
  Job Title:

  	
  Chief Financial Officer

  
	
   

  	
   

  
	
  Reporting:

  	
  You will report directly to the Chief Executive Officer of the
  Company. In the event that there is no CEO, you will report to the Board of
  Directors of the Company.

  
	
   

  	
   

  
	
  Commitment:

  	
  Full time.

  
	
   

  	
   

  
	
  Base Salary:

  	
  Your semi-monthly base salary is $13,541.67 payable the 15th
  and last day of each month (or on such other dates as determined by the
  Company for payment of base salary to senior executives, but not less
  frequently than once per month), and is annualized to $325,000, minus the
  appropriate taxes and withholdings.

  
	
   

  	
   

  
	
  Incentive Bonus Eligibility:

  	
  

  As an employee of Reliant, you will be eligible to participate in an
  incentive compensation plan with a potential range of up to sixty percent
  (60%) of base salary, which, if earned and awarded will be paid annually no
  later than the end of the first quarter of the following year. You must be
  employed by Reliant at the end of a given calendar year in order to be
  eligible, and you must also meet specific objectives that are intended to be
  established by Reliant in consultation with you.

  

 

 

	
  Temporary Housing and Weekend Travel:

  	
  

  

  For a period not to exceed eight (8) months from the date of your Initial
  Start Date with Reliant, Reliant will provide suitable temporary housing for
  you at a location convenient to the Company’s headquarters or will reimburse
  you for the reasonable and documented cost of same. In addition, during such
  period, the Company will reimburse you for the reasonable and documented cost
  of weekend travel (consistent with the Company’s travel policy) between the
  Company’s headquarters and your current residence in North Carolina.

  
	
   

  	
   

  
	
  Relocation Allowance:

  	
  

  Reliant will reimburse you for reasonable and documented relocation expenses
  in connection with your move from North Carolina to New Jersey, including,
  without limitation, real estate commissions, house hunting trips and moving
  costs. For the avoidance of doubt, Reliant will not reimburse you for the
  purchase price of your new home in New Jersey or for any personal property
  associated therewith.

  
	
   

  	
   

  
	
   

  	
   

  
	
  Equity Participation:

  	
  

  Upon commencement of employment with the Company you will be granted options
  to acquire 200,000 shares of Reliant Common Stock, with a strike price of
  $20.00/share. Such options will vest annually over a period of four (4) years
  at a rate of 25% per year, and the vesting commencement date for such options
  will be your first day as a full-time employee of Reliant. In addition to the
  initial option grant, you will be eligible to participate in the Company’s
  Equity Incentive Plan pursuant to which you may be granted options to
  purchase Common Stock of the Company. Any grant of such options (beyond the
  initial 200,000) is solely in the discretion of the Company and subject to
  approval of the Compensation Committee of the Board of Directors of the
  Company. Any such options will be granted at no less than fair market value
  (as determined by the Compensation Committee) as of the date of the grant,
  will vest annually over a four (4) year period at a rate of 25% per year and
  be subject to the other terms and conditions of the Company’s Equity
  Incentive Plan (as will the initial 200,000 options).

  
	
   

  	
   

  
	
  Benefits:

  	
  During your employment with Reliant, you will be eligible for
  Reliant’s then current employee benefits program applicable to your position,
  subject to all plan terms and eligibility requirements. The benefits for
  which you may be eligible are more fully described in the applicable plan
  summaries and related documents. The benefits currently offered to full-time
  employees include group medical, dental, vision and prescription coverage,
  group life and AD&D insurance, long-term and short-term disability
  insurance, 401(k) plan, flexible spending account, and select holidays. You
  will be eligible in accordance with Reliant’s

  

 

2

 

	
   

  	
  policy for Combined-Time Off of eighteen (18) days plus two floating
  holidays.

  
	
   

  	
   

  
	
  Termination:

  	
  If your employment with the
  Company is terminated by Reliant without “Cause” and you execute a general
  release of claims in a form reasonably satisfactory to Reliant, you will be
  entitled to your salary and other benefits accrued through the date of
  termination, as well as one year base salary compensation and any amounts due
  to you under the incentive compensation plan (but only to the extent earned
  and awarded), paid in accordance with the usual and customary payroll
  practices established by the Company, and you shall also be entitled to
  receive medical benefits upon the same terms as active employees of the Company
  during such one year period. Following such one year period you will be
  entitled to enroll in ‘COBRA’ in accordance with applicable law. For purposes
  of this letter agreement, “Cause” shall mean  (i) any act or omission of fraud or dishonesty by you, (ii) your
  conviction, or entry of a plea of guilty or nolo contendere to charges of, any felony or
  other crime involving moral turpitude, (iii) any act or omission by you that
  is materially injurious to the Company, provided that you shall have 30 days
  after written notice from the Company to cure or correct such act or omission
  (but only if such act or omission can be fully cured or corrected within such
  30 days period), (iv)  your continuing failure to
  perform the material duties of your position after you have been given
  written notice from the Company and 30 days to cure such failure.

  
	
   

  	
   

  
	
  Non-Solicitation:

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

  
	
   

  	
   

  
	
  Payments:

  	
  Unless otherwise specifically provided herein, all payments described
  in this letter agreement shall be made in accordance with the Company’s
  normal payroll or reimbursement practices and shall be subject to withholding
  to the extent required by applicable law.

  

 

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

 

Our
offer is contingent on being able to deliver satisfactory evidence of identity
and employment eligibility as required by Federal law on your start date. Your
employment is

 

3

 

also
contingent upon your execution of an employee confidentiality and assignment of
invention agreement in form and substance satisfactory to Reliant.

 

[Signature Page Follows]

 

4

 

Please
sign and date this letter agreement in the space indicated and return it to my
attention to evidence your understanding and acceptance of the terms set forth
herein.

 

 

	
   

  	
  Sincerely,

  
	
   

  	
   

  
	
   

  	
  RELIANT
  PHARMACEUTICALS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Ernest
  Mario, Chief Executive Officer

  
	
   

  	
   

  
	
  Agreed
  to and Accepted:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Robert
  Ferguson III

  	
   

  
	
   

  	
   

  
	
  Date:
  as of January 1, 2005

  	
   

  
				

 

5EXHIBIT 10.10

 

 

March 30, 2005

 

Mr. Steve Ketchum

 

                                      

                                      

 

Dear Steve:

 

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

 

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

 

	
  •                  Start Date:

  	
  On or before
  April 25, 2005. Employment is full-time.

  
	
   

  	
   

  
	
  •                  Job Title:

  	
  Sr. Vice
  President, Research and Development

  
	
   

  	
   

  
	
  •                  Base Salary:

  	
  Your
  semi-monthly salary is $12,500.00, payable the 15th and last day
  of each month, and is annualized to $300,000.00, minus the appropriate taxes
  and withholdings.

  
	
   

  	
   

  
	
  •                  Incentive

  	
   

  
	
  Eligibility:

  	
  As an employee,
  you will be eligible to participate in our incentive compensation program up
  to 70% of your annual base salary compensation. Definable objectives are/will
  be established and communicated to you.

  
	
   

  	
   

  
	
  •                  Equity

  	
   

  
	
  Participation:

  	
  You will be
  eligible to participate in the Company’s Equity Incentive Option Plan
  pursuant to which you may be granted an option to purchase up to 200,000
  shares of common stock of the Company. Any grant of such options is solely in
  the discretion of the Company and subject to approval of the Compensation
  Committee of the Company’s Board of Directors. The options will be granted at
  fair market value (as determined by the Company’s Board of Directors) as of
  the date of the grant, will vest annually over a four (4) year period and be subject
  to the other terms and conditions of the Company’s Equity Incentive Option
  Plan.

  
	
   

  	
   

  
	
  •                  Benefits:

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

  

 

 

	
  •                      Sign-on Bonus:

  	
  You will receive
  a sign-on bonus of $100,000.00 ninety days after your initial start date.
  This payment will be minus the appropriate taxes and withholdings.

  
	
   

  	
   

  
	
  •                      Relocation:

  	
  The Company
  relocation policy shall apply and details are contained within the new hire
  package.

  
	
   

  	
   

  
	
  •                      Contingencies:

  	
  This offer is
  contingent upon the following:

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  2.               satisfactory
  results of your successful completion of testing for drug abuse.

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  4.               your execution of
  a Confidentiality, Non-Compete and Assignment Agreement.

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  

 

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

 

We hope that you accept
this offer of employment and look forward to your joining us. Please sign and
date where indicated and return this letter to me to evidence your
understanding of these terms and acceptance of this offer. This offer shall
expire April 5, 2005 if we have not received your written acceptance by then.

 

	
  Sincerely,

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Ernest Mario

  	
   

  	
   

  
	
  Ernest Mario

  	
   

  
	
  CEO and Chairman of the
  Board

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Accepted:

  	
   /s/ Steve Ketchum

  	
  Date:

  	
   April 6, 2005

  	
   

  
						

 

2

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