Document:

Form of Option Agreement for directors

  
 Exhibit 10.1(c) 
  
 RELIANT PHARMACEUTICALS, INC. 
  
 2004 EQUITY INCENTIVE PLAN 
  
 STOCK OPTION AGREEMENT - DIRECTORS 
  
 Unless otherwise defined herein, capitalized terms shall have the same
meanings as set forth in the Reliant Pharmaceuticals, Inc. 2004 Equity Incentive Plan (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:
	  	 	 
		
	 Exercise Price per Share:
	  	$	 
		
	 Shares Granted:
	  	 	 
		
	 Total Exercise Price:
	  	$	 
		
	 Type of Option:
	  	 	Nonqualified Stock Option
		
	 Expiration Date:
	  	 	 

  
 Exercise:

  
 This Option is exercisable and vested in full on the Date of
Grant. 
  
 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. 
  

 2. Exercise of Option. This Option is exercisable as follows: 
  
 (a) Right to Exercise. 
  
 (i) This Option shall be exercisable in full at anytime
following the Grant Date. 
  
 (ii) This Option
may not be exercised for a fraction of a Share. 
  
 (iii) In the event of 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; 
  

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 (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 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. 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 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 Option, 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 this Option may be transferred to the 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 

  

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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] 
  

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 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:

			
	  	 	 	 	  
			
	 	 	 	 	  

  

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 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 

  

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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. 
  

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

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 (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. 
  

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 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:
	 	 
				
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

  

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 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:
                                        
            ,Reliant Pharmaceuticals, Inc. Stock Appreciation Rights Plan

 Exhibit 10.3 
  
 RELIANT PHARMACEUTICALS, INC. 
 STOCK APPRECIATION RIGHTS PLAN 
  
 1. PURPOSE OF THE PLAN 
  
 The purpose of the
Reliant Pharmaceuticals, Inc. Stock Appreciation Rights Plan is to provide employees of Reliant Pharmaceuticals, Inc. (the “Company”) and its Subsidiaries, with an incentive to promote the long-term performance of the Company by (a) tying
their long-term incentives to the performance of the Common Stock of the Company, (b) attracting and retaining as Employees, Directors, and Consultants those persons whose abilities, experience and judgment have contributed and will continue to
contribute to the financial success and progress of the Company, and (c) aligning the identity of interests of those Employers, Directors and Consultants and the Company’s shareholders. 
  
 Obligations of the Company and its Subsidiaries under the Plan shall be
unsecured and unfunded obligations, and the holders of Rights shall be general creditors of the Company. 
  
 2. DEFINITIONS 
  
 (a)
“Acquisition” means (i) any consolidation or merger of the Company with or into any other corporation or other entity or person in which the Company’s Shareholders prior to such consolidation or merger to own less than fifty
percent (50%) of the surviving entities voting power immediately after such consolidation or merger, or (ii) a sale of all or substantially all of the assets of Reliant in a complete liquidation or dissolution of the Company. 
  
 (b) “Award Agreement” means an agreement entered into
between the Company and the Participant evidencing the terms of a Right. 
  
 (c) “Base Price” means such amount as determined by the Committee, but will not be less than the Fair Market Value of a share of Common Stock on the Grant Date. 
  
 (d) “Board of Directors” means the Board of Directors of the
Company as it may be constituted from time to time. 
  
 (e)
“Cause” shall mean a termination by the Company of any Subsidiary of the Service Provider’s relationship due to (i) the commission by the Service Provider of an act of fraud against the Company or any Subsidiary thereof or
embezzlement, the unauthorized disclosure of the Company’s or a Subsidiaries’ confidential information which disclosure the Service Provider knew or reasonably should have known could have the potential to result in material damage to the
Company or its Subsidiaries, or a breach of one or more of the following duties to the Company or a Subsidiary: (A) the duty of loyalty, (B) the duty not to take willful actions which would reasonably be viewed by the Company as placing the Service
Provider’s interest in a position adverse to the interest of the Company or a Subsidiary, (C) the duty not to engage in self-dealing with respect to the Company’s or its Subsidiaries’ assets, properties or business opportunities, (D)
the duty of honesty or (E) any other fiduciary duty which the Service Provider owes to the Company or a Subsidiary, (ii) a conviction of the Service Provider (or a 

 
plea of nolo contendere in lieu thereof) for (A) a felony or (B) a crime involving fraud, dishonesty or moral turpitude, (iii) intentional misconduct
with respect to his/her duties to the Company or a Subsidiary, including, but not limited to, knowing and intentional violation by the Service Provider of written policies of the Company and its Subsidiaries or specific directions of the Board of
Directors or superior officers of the Company or a Subsidiary, which policies or directives are neither illegal (or do not involve illegal conduct) nor do they require the Service Provider to violate reasonable business ethical standards, or (iv)
the failure of the Service Provider, after written notice from the Company and its Subsidiaries to render services in accordance with his employment or other relationships with the Company and its Subsidiaries, which failure is not cured within 10
days of receipt of such notice 
  
 (f) “Code”
means the Internal Revenue Code of 1986, as amended. 
  
 (g)
“Committee” means the Board of Directors or a committee of the Board of Directors appointed to serve as the administrator of the Plan. 
  
 (h) “Common Stock” means (i) the common stock of the Company, par value $0.01 per share, as adjusted as provided in Section 6, or (ii) if
there is a merger or consolidation and the Company is not the surviving corporation, the capital stock of the surviving corporation given in exchange for such common stock of the Company. 
  
 (i) “Company” means Reliant Pharmaceuticals, Inc., a Delaware corporation. 
  
 (j) “Consultant” means any consultant or adviser if: (i) the
consultant or adviser renders bona fide services to the Company or a Subsidiary; (ii) the services rendered by the consultant or adviser are not in connection with the offer or sale of securities in a capital-raising transaction and do not directly
or indirectly promote or maintain a market for the Company’s securities; and (iii) the consultant or adviser is a natural person who has contracted directly with the Company to render such services. 
  
 (k) “Director” means a member of the Board of Directors.

  
 (l) “Disability” means the total and
permanent disability of a Participant within the meaning of Code Section 22(e)(3). 
  
 (m) “Employee” means any person, who is an employee (within the meaning of Section 3401(c) of the Code) of the Company or a Subsidiary. A Service Provider shall not cease to be an Employee in the case
of (i) any leave of absence approved by the Company or (ii) transfers between locations of the Company or between the Company, and any Subsidiary or any successor. Neither service as a Director nor payment of a Director’s fee by the Company
shall be sufficient, by itself, to constitute “employment” by the Company. The term employee shall not include any person whose services with the Company are preformed pursuant to a contract that purports to treat the individual as an
independent contractor even if such individual is later determined (by judicial action or otherwise) to have been a common law employee of the Company, rather than an independent contractor. 
  
 (n) “Exchange Act” means the Securities Exchange Act of
1934, as amended, and any successor statutes or regulations of similar purpose or effect. 
  

 2 

 (o) “Exercise Date” means the date on which the Participant elects to surrender his
Right. 
  
 (p) “Expiration Date” means the date
on which a Right ultimately becomes unexercisable either by reason of the lapse of time or otherwise. 
  
 (q) “Fair Market Value” of a share of Common Stock as of a given date shall be (a) the closing price of a share of Common Stock on the
principal exchange on which shares of Common Stock are then trading, if any (or as reported on any composite index which includes such principal exchange), on the trading day previous to such date, or if shares were not traded on the trading day
previous to such date, then on the next preceding date on which a trade occurred, or (b) if Common Stock is not traded on an exchange but is quoted on Nasdaq or a successor quotation system, the closing sales price for a share or for Common Stock
(or the closing bid, if no sales were reported) on the trading day previous to such date as reported by Nasdaq or such successor quotation system, or (c) if Common Stock is not publicly traded on an exchange and not quoted on Nasdaq or a successor
quotation system, the Fair Market Value of a share of Common Stock as determined by the Committee acting in good faith which determination shall be final and binding. 
  
 (r) “Grant Date” means the date designated by the Committee as the date of grant of a Right. 
  
 (s) “Participant” means a Service Provider who has been
granted a Right that has not been exercised, cancelled or forfeited and which has not expired. 
  
 (t) “Plan” means the Reliant Pharmaceuticals, Inc. Stock Appreciation Rights Plan, as may be amended from time to time. 
  
 (u) “Right” means a stock appreciation right entitling the Participant to the positive difference, if any,
between the Fair Market Value of the Common Stock on the Exercise Date and the Base Price. 
  
 (v) “Service Provider” means an Employee, Director or Consultant. 
  
 (w) “Subsidiary” means (i) any corporation the majority of the voting power of all classes of stock entitled to vote or the majority of
the total value of shares of all classes of stock of which is owned, directly or indirectly, by the Company, or (ii) any trade or business other than a corporation the majority of the profits interest, capital interest or actuarial interest of which
is owned, directly or indirectly, by the Company. 
  
 (x)
“Vesting Date” means the date on which an Right becomes fully exercisable by the Participant as provided in Section 4(b). 
  
 3. ADMINISTRATION OF THE PLAN 
  
 (a) The Plan will be administered by the Committee. The Committee may adopt its own rules of procedure, and the action of a majority of the Board of
Directors or committee, as applicable, taken at a meeting or, to the extent permitted by law, taken without a 

  

 3 

 
meeting by a writing signed by such majority (or by all or such greater proportion of the members thereof if required by law), shall constitute action by the
Committee. The Committee shall have the power, authority and the discretion to administer, construe and interpret the Plan and Award Agreements, including without limitation, the discretion to determine which Service Providers shall be Participants
and the terms and conditions, subject to the Plan, of the individual Award Agreements (including without limitation the Base Price and the vesting schedule, if any). The decisions and interpretations of the Committee with respect to any matter
concerning the Plan shall be final, conclusive and binding on all parties who have an interest in the Plan. Any such interpretations, rules, and administration shall be consistent with the basic purposes of the Plan. The Committee will also have the
authority to exercise such powers and perform such acts with respect to the Plan and the Rights as the Committee deems necessary or desirable to promote the best interests of Reliant which are not in conflict with the provisions of the Plan.
Notwithstanding anything to the contrary contained in the Plan, the Board will also have all power and authority to perform any act granted to the Committee pursuant to the Plan. 
  
 (b) The Committee may employ attorneys, consultants, accountants, appraisers, or other persons. The Committee, the Company
and its Subsidiaries, and the officers and directors of the Company and its Subsidiaries shall be entitled to rely upon the advice, opinions or valuations of any such persons. All actions taken and all interpretations and determinations made by the
Committee in good faith shall be final and binding upon all Participants, the Company and its Subsidiaries, and all other interested persons. No member of the Committee shall be personally liable for any action, determination or interpretation made
in good faith with respect to the Plan or the Rights, and all members of the Committee shall be fully protected by the Company with respect to any such action, determination or interpretation. 
  
 4. RIGHTS 
  
 (a) Grant of Rights. The Committee may, in its sole discretion, at any time and from time to time grant Rights to any
Service Provider. Each award of Rights will be evidenced by an Award Agreement containing such terms and conditions, not inconsistent with the Plan, as the Committee approves from time to time. 
  
 (b) Vesting. Each Right vests and becomes fully exercisable by the
Participant on the Vesting Date as specified by the Committee in the Award Agreement. Unless otherwise specified by the Committee in the Award Agreement, a Participant’s Rights shall terminate automatically if the Participant ceases to be a
Service Provider for Cause. If, on the date of termination as a Service Provider, the Participant is not vested as to his or her entire Right, that portion of the Rights in which the Participant is not vested shall immediately be forfeited and
terminate. If, after termination as a Service Provider, the Participant does not exercise the vested portion of the Right by its Expiration Date, the Right shall terminate. 
  
 (c) Exercisability. A Participant who is a Service Provider may exercise a Right on any date which is on or after the
Vesting Date, but on or before the Expiration Date. If a Participant’s relationship as a Service Provider is terminated for any reason whatsoever, such Participant may exercise the vested portion of the Right within such period of time as set
forth in the Award Agreement, but in no event later than the Expiration Date. In absence of a specified time in the Award Agreement vested rights that are not otherwise forfeited or expired shall remain exercisable, until the following dates:

  
 (i) Twelve (12) months after termination, if termination is
due to death; or 
  

 4 

 (ii) Three (3) months after the date of termination, if termination is for any reason other than death
or Disability. 
  
 Any Right not exercised within the applicable
period as described above will be forfeited and terminated. Notwithstanding anything herein to the contrary, no Right may be exercised before the Vesting Date or after the Expiration Date. 
  
 (d) Term. The term of each Right will be ten (10) years from Grant
Date, unless otherwise specified by the Committee in the Award Agreement. The Committee may, from time to time, extend the Expiration Date of any Right upon such terms and conditions, as the Committee will determine. 
  
 (e) No Ordering. Rights may be exercised in any order, regardless of
the Grant Date or the existence of any other outstanding Right. 
  
 (f) Whole or Partial Exercise. A Right may be exercised by a Participant, to the extent exercisable, in whole or in part. 
  
 (g) Beneficiaries. In the event of the death of a Participant, the person or persons to whom any Right is transferred by will or the laws of
descent and distribution will have the right (prior to the Expiration Date) to exercise such Right in whole or in part. 
  
 (h) Committee Discretion. Notwithstanding the foregoing, the Committee may, if it believes circumstances warrant such action, authorize the
exercise of an Right that would otherwise have terminated. 
  
 5. MANNER OF
EXERCISE 
  
 (a) Notice of Exercise. To the extent an
Right is vested and exercisable as provided in Section 4, a Participant (or if applicable his or her beneficiary), may exercise all or any part of the Right by delivery of an exercise notice in the form and manner as set forth in the Award
Agreement. 
  
 (b) Settlement of Rights. Upon exercise of a
Right the Participant (or if applicable his beneficiary) will receive an amount, less any required withholding equal to the product of: 
  
 (i) the difference between the Fair Market Value of a share of Common Stock on the Exercise Date and the Base Price; multiplied by

  
 (ii) the number of shares of Common Stock
with respect to which the Right is being exercised. 
  

 5 

 Payment may be made in cash, by cancellation of all or a portion of any outstanding indebtedness of the
Participant to the Company or any Subsidiary, or in installments, plus interest, in the discretion of the Committee. 
  
 6. DILUTION AND OTHER ADJUSTMENTS 
  
 (a) In the event that the Committee determines that any dividend or other distribution (whether in the form of cash, additional Common Stock or other
property), recapitalization, reclassification, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, liquidation, dissolution, or sale, transfer, exchange or other disposition of all or substantially all of the assets
of Reliant, or exchange of Common Stock or other securities of Reliant, issuance of warrants or other rights to purchase Common Stock or other securities of Reliant, or other similar corporate transaction or event, in the Committee’s sole
discretion, affects the Common Stock such that an adjustment is determined by the Committee to be appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan or with
respect to any Rights, then the Committee shall, in such manner as it may deem equitable, adjust any or all of: 
  
 (i) the kind of Common Stock (or other securities or property) with respect to which Rights may be granted or awarded; 
  
 (ii) the number and kind of Common Stock (or other
securities or property) subject to outstanding Rights; and 
  
 (iii) the Base Price with respect to any Right. 
  
 (b) In the event of any transaction or event described in Section 6(a), the Committee, in its sole discretion, and on such terms and conditions as it deems appropriate, either by the terms of the Award Agreement or by
action taken prior to the occurrence of such transaction or event and either automatically or upon the Participant’s request, may take any one or more of the following actions whenever the Committee determines that such action is appropriate in
order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan or with respect to any Rights granted under the Plan or to facilitate such transaction or event: 
  
 (i) to provide for the purchase of any Rights for an amount
of cash and/or promissory notes equal to the amount that the exercise of such Right would have yielded on the relevant date; 
  
 (ii) to provide that such Right shall be fully vested and exercisable, notwithstanding anything to the contrary in the Plan or the
provisions of such Right; 
  
 (iii) to provide
that such Rights be assumed by the successor or survivor entity, or a parent or subsidiary thereof, or shall be substituted for by similar rights or awards covering the equity securities of the successor or survivor corporation, or a parent or
subsidiary thereof, with appropriate adjustments as to the number and kind of equity and base prices; and/or 
  

 6 

 (iv) to make adjustments in the number and type of Common Stock (or other securities or
property) subject to outstanding Rights, and/or in the terms and conditions of (including the grant or base price), and the criteria included in, outstanding Rights or which may be granted in the future. 
  
 (c) The Committee may, in its discretion, include such further provisions and
limitations in any Award Agreement or certificate, as it may deem equitable and in the best interests of Reliant. 
  
 (d) If Reliant undergoes an Acquisition, then any surviving corporation or entity or acquiring corporation or entity, or affiliate of such corporation or
entity, may assume any Rights outstanding under the Plan or may substitute similar awards for those outstanding under the Plan. In the event any surviving corporation or entity or acquiring corporation or entity in an Acquisition does not assume
such Rights or does not substitute similar awards for those outstanding under the Plan, then with respect to (i) Rights held by Participants whose status as a Service Provider has not terminated prior to such event, the vesting of such Rights (and,
if applicable, the time during which such awards may be exercised) shall be accelerated and made fully exercisable and all restrictions thereon shall lapse at least ten (10) days prior to the closing of the Acquisition (and the Rights terminated if
not exercised prior to the closing of such Acquisition), and (ii) any other Rights outstanding under the Plan, such Rights shall be terminated if not exercised prior to the closing of the Acquisition. 
  
 7. CANCELLATION OF RIGHTS 
  
 The Committee may cancel all or any part of a Right with the written consent
of the Participant holding such Right. In the event of any cancellation, all rights of the former Participant in respect of such cancelled Right will terminate. 
  

8. MISCELLANEOUS PROVISIONS 
  
 (a) Assignment and Transfer. Rights may not be sold, pledged, assigned, hypothecated, transferred or disposed of in any manner other than by will
or the laws of descent and distribution and Rights may be exercised or otherwise realized, during the lifetime of the Participant, only by the Participant or by his or her guardian or legal representative. 
  
 (b) No Right to Rights or Employment. No Service Provider or other
person will have any claim or right to be granted a Right. Neither the Plan nor any action taken hereunder will be construed as giving any Employee or Participant any right to be retained in the employ of the Company or any Subsidiary. 

 
 (c) Taxes. The Company or its Subsidiaries will have the right to
deduct from payment of a Right any taxes required by law to be withheld from an Employee with respect to such payment. 
  
 (d) Securities Laws. Each Right will be subject to the condition that such Right may not be exercised if the Committee determines that the exercise
of such Right may violate the securities laws or any other law or requirement of any governmental authority. Reliant will not be deemed by any reason of the granting of any Rights to have any obligation to 
  

 7 

 register the Rights or the Common Stock or other equity securities underlying such Rights under the securities laws or to
maintain in effect any registration of such Rights or equity securities which may be made at any time under the securities laws. 
  
 (e) Severability. Whenever possible, each provision in the Plan and in every Award Agreement will be interpreted in such manner as to be effective
and valid under applicable law but if any provision of this Plan or any Award Agreement made thereunder will be held to be prohibited by or invalid under applicable law, then (i) such provision will be deemed amended to, and to have contained from
the outset such language will be necessary to, accomplish the objectives of the provision as originally written to the fullest extent permitted by law and (ii) all other provisions of the Plan and every Award Agreement will remain in full force and
effect. 
  
 (f) No Strict Construction. No rule of strict
construction will be applied against the Company, the Committee or any other person in the interpretation of any of the terms of the Plan, any Right or any rule or procedure established by the Committee. 
  
 (g) Stockholder Rights. A Participant will not have any dividend,
voting or other stockholder rights by reason of a grant of a Right or settlement of a Right. 
  
 (h) Governing Law. The Plan will be governed by and construed in accordance with the laws of the State of Delaware. 
  
 9. AMENDMENT AND TERMINATION 
  
 The Committee may at any time amend, suspend or terminate the Plan, provided that no such action will adversely affect any rights under any Right
theretofore granted or change the vesting applicable to a Right in a manner adverse to a Participant, except in accordance with Section 6. 
  
 10. EFFECTIVE DATE OF THE PLAN 
  
 The Plan will become effective as of April 1, 2004. 
  
 I hereby certify that the foregoing Plan was duly adopted by the Board of Directors of Reliant Pharmaceuticals, Inc. on April 1, 2004. 
  
 Executed on this 1st day of April, 2004. 
  

	
	 /s/ Michael Lerner

	 Secretary

  

 8

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