Document:

Option Agreement between Reliant Pharmaceuticals and Ernest Mario

 Exhibit 10.16 
  
 RELIANT PHARMACEUTICALS, LLC 
  

EQUITY INCENTIVE PLAN 
  
 OPTION AGREEMENT 
  
 Unless otherwise specified herein, capitalized terms shall have the same meanings as set forth in the Reliant Pharmaceuticals, LLC Equity Incentive Plan
(the “Plan”). 
  

			
	I.	 	NOTICE OF OPTION GRANT
		
	 	 	Ernest Mario

  
 You
(“Participant”) have been granted an option to purchase Class One Common Units (the “Units”) 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:
	 	December 17, 2003	 	 	 	 
				
	 Vesting Commencement Date:
	 	April 29, 2003	 	 	 	 
				
	 Exercise Price per Unit:
	 	$20.00	 	 	 	 
				
	 Units Granted:
	 	200,000	 	 	 	 
				
	 Total Exercise Price:
	 	$4,000,000	 	 	 	 
				
	 Expiration Date:
	 	December 17, 2013	 	 	 	 

  
 Exercise and
Vesting Schedule: 
  
 This Option is exercisable immediately,
in whole, conditioned upon Participant entering into the Exercise Notice and Restricted Unit Agreement (the “Restricted Unit Agreement”) in the form set forth on Exhibit A. This Option shall vest and/or the Units purchased
upon exercise of this Option shall be released from Repurchase, as set forth in the Restricted Unit Agreement according to the following schedule: 
  
 Twenty-five percent (25%) of the Units subject to the Option (rounded down to the next whole number of Units) shall vest on each anniversary of the
Vesting Commencement Date, so that all of the Units shall be vested on the fourth anniversary of the Vesting Commencement Date. 
  
 Notwithstanding the foregoing in the event of a Change of Control (as defined below) all Units subject to the Option shall be fully vested on the
effective date of the Change of Control. 
  
 “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; (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 Securities Exchange Act of 1934, as amended
(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. 
  
 Termination Period: 
  
 This Option may be exercised for one hundred and twenty (120) days after
Participant ceases to be a Service Provider, or such longer period as may be applicable upon the death or Disability as provided herein, (or, if not provided herein, then as provided in the Plan), but in no event later than the Term/Expiration Date
as provided above. 
  
 II. AGREEMENT 
  
 1. Grant of Option. The Company hereby grants to the Participant an
Option to purchase the number of Units 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 and the LLC Agreement, which are incorporated herein by reference. 
  
 The Company intends to convert from a limited liability company to a C-Corporation effective on or about March 31, 2004. Upon such conversion all
references in this Agreement to Restricted Units shall refer to common stock into which the units will convert. Additionally, upon such conversion all references to LLC Agreement shall refer to any Stockholders Agreement which may be entered into in
connection with such conversion. 
  
 2. Exercise of Option.
This Option is exercisable as follows: 
  
 (a) Right to
Exercise. 
  
 (i) This Option is exercisable in full upon
the date it is granted. 
  
 (ii) This Option may be not be
exercised for a partial Unit. 
  
 (iii) 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 execution of the Restricted Unit Agreement, stating the number of Units for which the Option is being exercised, and such other representations and
agreements with respect to such Units as may be required by 

  

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the Company pursuant to the provisions of the Plan. The Restricted Unit Agreement must be signed by the Participant and, shall be delivered in person or by
certified mail to the Secretary of the Company. The Restricted Unit Agreement 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 the executed Restricted Unit Agreement accompanied by the Exercise Price and payment of any applicable withholding tax. 
  
 (c) Compliance with Applicable Law. No Units shall be acquired pursuant to the exercise of an Option unless such acquisition and exercise comply
with all relevant Applicable Law. Assuming such compliance, for income tax purposes the Units shall be considered transferred to the Participant on the date on which the Option is exercised with respect to such Units. 
  
 3. Participant’s Representations. 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. Vesting. Participant shall vest in the Units issuable upon exercise
of this Option as set forth in the Notice of Grant. For purposes of this Option Agreement, the Units subject to this Option shall vest based on Participant’s continued status as a Service Provider. The vested portion of the Units shall not be
subject to Repurchase (as set forth in the Restricted Unit Agreement) but shall be subject to the Company’s Right of First Refusal and Call Right as set forth in the Restricted Unit Agreement. 
  
 5. 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; or

  
 (c) with the consent of the Committee, property of any kind
(including the surrender of underlying Units) which constitutes good and valuable consideration. 
  
 6. Term of Option. To the extent that this Option is not vested at the date on which the Participant ceases to be a Service Provider, or if the
Participant does not exercise this Option within the time specified herein, the Option shall terminate. This Option shall terminate on the date Participant ceases to be a Service Provider for Cause or by reason of his voluntary termination without
Good Reason during the Employment Period. Except as provided in this Section 6, this Option may be exercised only within the term set out in the Notice of Grant. 
  
 (a) Termination of Relationship. If Participant ceases to be a Service Provider, Participant may exercise the vested
portion of this Option during the Termination Period set out in the Notice of Grant. 
  
 (b) Death or Disability of Participant. If Participant ceases to be a Service Provider as a result of death or Disability, the vested portion of the Option as of the date on which such Participant ceased to be
a Service Provider, shall be exercisable at any time within twenty-four (24) months from such date, but in no event later than the Expiration Date as set forth in the Notice of Grant. 
  

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 7. Restrictions on Exercise. If the purchase of the Unit upon such exercise or if the method of
payment for such Units would constitute a violation of any Applicable Laws, then the Option may not be exercised. The Company may require Participant to make any representation and warranty to the Company as may be required by any Applicable Law or
regulation before allowing the Option to be exercised. 
  
 8.
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 the Option may be transferred to the Participant’s Immediate Family and Participant’s and Participant’s Immediate Family’s trusts, foundations, partnerships and other family entities; provided, however, that any such
transfer is without payment of any consideration whatsoever, that no such transfer shall be valid unless first approved by the Committee, acting in its sole discretion, and that any Option so transferred shall remain subject to the terms and
conditions of this Option agreement. The terms of this Option shall be binding upon the executors, heirs, successors and assigns of the Participant. 
  
 9. Restrictions on Units. Participant hereby agrees that the Units purchased upon the exercise of the Option shall be subject to the terms and
conditions of the LLC Agreement, and such other terms and conditions as the Committee may determine in its sole discretion, including, without limitation, restrictions on the transferability of Units, the right of the Company to repurchase Units,
and a right of first refusal in favor of the Company with respect to permitted transfers of Units. Such terms and conditions may, in the Committee’s sole discretion, be contained in the Restricted Unit Agreement 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 upon exercise of the Option. 
  
 10. 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 of 1933, as Amended (the “Securities Act”), Participant shall
not sell or otherwise transfer any Units (or any securities of the Company in which such Units may be converted) 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. 
  

[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, LLC

		
	 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 UNITS HEREUNDER). PARTICIPANT FURTHER ACKNOWLEDGES AND AGREES THAT NOTHING IN THIS AGREEMENT, NOR IN THE COMPANY’S 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 the LLC Agreement 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, the LLC Agreement 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: December 31, 2003	 	 /s/ Ernest Mario

	 	 	Ernest Mario
		
	 	 	Residence Address:
	 	 	  

	 	 	  

  

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 EXHIBIT A 
  
 RELIANT PHARMACEUTICALS, LLC 
  

EQUITY INCENTIVE PLAN 
  
 EXERCISE NOTICE AND RESTRICTED UNIT AGREEMENT 
  
 Reliant Pharmaceuticals, LLC 
 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      Class One Common Units (the “Units”) in Reliant Pharmaceuticals, LLC (the “Company”)
under and pursuant to the Reliant Pharmaceuticals, LLC Equity Incentive Plan (the “Plan”) and the Option Agreement dated
                    ,             , (the “Option
Agreement”),              portion of the Units have not become vested under the vesting schedule set forth in the Option Agreement (“Unvested Units”). Upon
termination of Purchaser’s status as a Service Provider, the Unvested Units shall be subject to Repurchase as set forth in Section 6 below. The vested portion of the Units (“Vested Units”) shall not be subject to Repurchase.

  
 2. Representations of Participant. Participant
acknowledges that he or she has received, read and understood the Plan, the Option Agreement, the LLC Agreement, this Exercise Notice and Restricted Unit Agreement and is familiar with their terms and provisions. Participant hereby agrees to accept
as binding, conclusive and final all decisions or interpretations of the Company’s Board of Managers or committee thereof that is responsible for the administration of the Plan (the “Committee”) upon any questions arising under
this Agreement. 
  
 3. Rights and Obligations as a Member.
Upon exercise of the Option in compliance and in accordance with the provisions of Section 8(b) and (c) of the Plan, the Participant shall become a Common Holder and, at the discretion of the Committee, have all rights of a Common Holder with
respect to said Units as provided in the LLC Agreement. Participant, without further action on his or her part, by purchase of the Units agrees to be deemed a party to, a signatory of and bound by the LLC Agreement, and the Units shall be subject to
such rights and restrictions as contained therein. Participant shall enjoy rights as a Common Holder and shall be subject to all of the limitations, restrictions and obligations contained in the LLC Agreement as a Common Holder, until such time as
Participant disposes of the Units or the Company and/or its assignee(s) exercises the Right of First Refusal, Call Right or the Repurchase provided in this Agreement or otherwise in the LLC Agreement. Upon such exercise, Participant shall have no
further rights as a holder of the Units so purchased except the right to receive payment for the Units so purchased in accordance with the provisions of this Agreement and the LLC Agreement. 

 The Company intends to convert from a limited liability company to a C-Corporation effective on or about
March 31, 2004. Upon such conversion all references in this Agreement to Restricted Units shall refer to common stock into which the units will convert. Additionally, upon such conversion all references to LLC Agreement shall refer to any
Stockholders Agreement which may be entered into in connection with such conversion. 
  
 4. Participant’s Rights to Transfer Units. 
  
 (a) Limitations on Transfer. Unvested Units (or any securities into which such Units may be converted) may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner; provided, however,
that Unvested Units may, with the consent of the Committee, be (i) transferred to the Participant’s Immediate Family, and to Participant’s and Participant’s Immediate Family’s trusts, foundations, partnerships and other family
entities so long as such transfer is without receipt of any consideration therefore, or (ii) assigned or pledged to the Company as collateral on any loan used to acquire such Units as provided by the Plan, so long as any Unvested Unit so
transferred, assigned or pledged shall remain subject to the terms and conditions of this Agreement. Purchaser may transfer Vested Units (or any securities into which such Units may be converted), subject to the restrictions contained in this
Section 4 and the LLC Agreement; provided however no Units may be transferred (A) to a direct competitor of the Company as determined by the Board or (B) for consideration other than cash. 
  
 (b) Company’s Right of First Refusal. Before any Vested Units (or
any securities into which such Vested Units may be converted) 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 Vested Units on the terms and conditions set forth in this
Section (the “Right of First Refusal”). 
  
 (i)
Notice of Proposed Transfer. The Holder of the Vested Units shall deliver to the Company a written notice (the “Notice”) stating: (i) the Holder’s bona fide intention to sell or otherwise Transfer such Vested Units; (ii)
the name of each proposed Participant or other transferee (“Proposed Transferee”); (iii) the number of Vested Units to be Transferred to each Proposed Transferee; and (iv) the bona fide cash price for which the Holder proposes to
Transfer the Vested Units (the “Offered Price”), and the Holder shall offer the Vested Units 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 Vested Units proposed to be Transferred to any one or more of the Proposed Transferees. The purchase price will be determined in accordance with subsection (c) below.

  
 (iii) Purchase Price. The purchase price
(“Purchase Price”) for the Units repurchased under this Section shall be the Offered Price. 
  

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 (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 Vested Units 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 LLC Agreement, the Holder may sell or otherwise Transfer such Units 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 that the provisions of this Section and shall continue to apply to the Vested Units in the hands of such Proposed Transferee. If the Vested Units 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 Vested Units 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 LLC Agreement. 
  
 (c) Exception for Certain Family Transfers. Anything to the contrary contained in this Section notwithstanding, the
Transfer of any or all of the Units during the Participant’s lifetime or on the Participant’s death by will or intestacy to the Participant’s Immediate Family or to Participant’s and Participant’s Immediate Family’s
trusts, foundations, partnerships and other family entities shall be exempt from the Right of First Refusal. In such case, the transferee or other recipient shall receive and hold the Units so Transferred subject to the provisions of this Section,
Section 5, the Restricted Unit Agreement, and the LLC Agreement, as applicable, and there shall be no further Transfer of such Units except in accordance with the terms of this Section. 
  
 (d) Termination of Right of First Refusal. The Right of First Refusal shall terminate as to all Units (and any
securities into which such Units may be converted) ninety (90) days after a sale of common stock of the Company to the general public pursuant to a registration statement filed with and declared effective by the Securities and Exchange Commission
under the Securities Act of 1933, as amended (a “Public Offering”). 
  
 5. Company Call Right. 
  
 (a) If Participant ceases to be a Service Provider (as defined in the Plan) for any reason, the Company shall have the right to purchase any or all of the Vested Units (or any securities into which such Vested Units may be converted) then
owned by a Holder at a price equal to the Fair Market Value (as defined in the Plan) of the Vested Units on the date on which the Participant ceases to be a Service Provider (the “Call Right”). 
  

 3 

 (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 be a Service Provider, 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 Vested Units 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 be a Service Provider, the Company Call Right shall terminate. 
  
 (e) The Company Call Right shall terminate as to all Vested Units (or any securities into which such Vested Units may be converted) ninety (90) days after
a Public Offering. 
  
 6. Repurchase. 
  
 (a) If Participant ceases to be a Service Provider (as defined in the
Company’s Equity Incentive Plan) for any reason, the Company shall purchase all of the Participant’s Unvested Units from the Holder thereof, as of the date on which Participant ceases to be a Service Provider (the “Repurchase”)
at the lesser of (i) the exercise price paid by the Participant for such Units in connection with the exercise of the Option or (i) the Fair Market Value thereof (the “Repurchase Price”). The Company shall deliver the Repurchase Price, to
the Holder by check, cash or wire transfer within ninety (90) days of the date on which Participant ceases to be a Service Provider. 
  
 (b) The Unvested Units shall be released from Repurchase in accordance with the Vesting Schedule set forth in the Notice of Grant until all Units are
released from the Repurchase obligation. 
  
 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. Tax Consultation. 
  
 (a) Representations. Participant understands that he or she may
suffer adverse tax consequences as a result of his or her purchase or disposition of the Units. Participant has reviewed with his or her own tax advisors the federal, state, local and foreign tax consequences of this investment and the transactions
contemplated by this Agreement. Participant is relying solely on such advisors and not on any statements or representations of the Company or any of its agents. Participant understands that he or she (and not the Company) shall be responsible for
his or her own tax liability that may arise as a result of this investment or the transactions contemplated by this Agreement. 
  

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 (b) Section 83(b) Election. Participant hereby acknowledges that he or she has been informed that,
with respect to the exercise of the Option for Unvested Units, that unless an election is filed by the Participant with the Internal Revenue Service and, if necessary, the proper state taxing authorities, within thirty (30) days of the
purchase of the Units, electing pursuant to Section 83(b) of the Code (and similar state tax provisions if applicable) to be taxed currently on any difference between the purchase price of the Units and their Fair Market Value on the date of
purchase, there will be a recognition of taxable income to the Participant, measured by the excess, if any, of the Fair Market Value of the Units, at the time the Repurchase lapses over the purchase price for the Units. Participant represents that
Participant has consulted any tax consultant(s) Participant deems advisable in connection with the purchase of the Units or the filing of the election under Section 83(b) and similar tax provisions. PARTICIPANT ACKNOWLEDGES THAT IT IS HIS OR HER
SOLE RESPONSIBILITY AND NOT THE COMPANY’S TO FILE TIMELY THE ELECTION UNDER SECTION 83(b), EVEN IF PARTICIPANT REQUESTS THE COMPANY OR ITS REPRESENTATIVE TO MAKE THIS FILING ON HIS OR HER BEHALF 
  
 9. Refusal to Transfer. The Company shall not be required (i) to
transfer on its books any Units that have been sold or otherwise transferred in violation of any of the provisions of the this Agreement or the LLC Agreement or (ii) to treat as owner of such Units or to accord the right to vote or pay dividends to
any Participant or other transferee to whom such Units shall have been so transferred. 
  
 10. No Right to Employment. PARTICIPANT ACKNOWLEDGES AND AGREES THAT THE UNVESTED UNITS HEREIN GRANTED CONTINUE TO VEST 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 OR ACQUIRING UNITS HEREUNDER). PARTICIPANT FURTHER ACKNOWLEDGES AND AGREES THAT NOTHING IN THIS AGREEMENT, NOR IN THE COMPANY’S 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. 
  
 11. 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. 
  
 12. Arbitration. Except as provided in Section 13 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, 

  

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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 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 the Participant, 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 Participant and the Company 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. 
  
 13. Governing Law. 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. The parties irrevocably agree that all actions to enforce an
arbitrator’s decision pursuant to Section 10 of this Agreement shall be instituted and litigated only in federal, state or local courts sitting in Newark, New Jersey and each of such parties hereby consents to the exclusive jurisdiction and
venue of such court and waives any objection based on forum non conveniens. 
  
 14. 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 10 OF THIS AGREEMENT. 
  
 15. Severability.
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. 
  
 16. 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. 
  

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 17. 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. 
  
 18. Delivery of Payment. Participant herewith delivers to the Company the full Exercise Price for the Shares, as well as any applicable withholding
tax. 
  
 19. Entire Agreement. The Plan, Option Agreement,
the Employment Agreement and LLC Agreement are incorporated herein by reference. This Agreement, the Plan, the Option Agreement, the Employment 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, LLC
			
	 /s/ Ernest Mario

	 	By:	 	 /s/ Joseph J. Krivulka

	 Ernest Mario
	 	Its:	 	President
			
	 Address:
	 	 	 	 
	  

	 	 	 	 
	  

	 	 	 	 
	  

	 	 	 	 

  

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 EXHIBIT B 
  
 INVESTMENT REPRESENTATION STATEMENT 
  

			
	 PARTICIPANT:
	 	ERNEST MARIO
		
	 COMPANY :
	 	RELIANT PHARMACEUTICALS, LLC.
		
	 SECURITY :
	 	CLASS ONE COMMON UNITS
		
	 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 has received and read the financial information provided by the Company and has had an opportunity to discuss the Company’s business, management and financial affairs
with the managers, officers and other management personnel of the Company. Participant has also had the opportunity to ask questions of and receive answers from, the Company and its management regarding the risks, terms and conditions of this
investment. 
  
 (b) Participant (i) has such knowledge and
experience in financial and business matters that it is capable of evaluating the merits and risks of its investment in these Securities, (ii) is able to bear the complete loss of his investment in these Securities, and (iii) is an “accredited
investor” as that term is defined in Rule 501(a)(3) under the Securities Act of 1933, as amended (the “Securities Act”). 
  
 (c) Participant is acquiring these Securities for investment purposes for Participant’s own account only and not with a view to distributing or
resale of all or any part thereof in any transaction which would constitute a “distribution” within the meaning of the Securities Act. Participant acknowledges that none of the Securities have been registered under the Securities
Act and, except as may be specifically agreed to by the Company, the Company is under no obligation to file a registration statement with the Securities and Exchange Commission with respect to all or any part of such Securities. 
  
 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 has been advised or is aware of the provisions of Rule 144 promulgated under the Securities Act, which permits limited resale
of securities purchased in a private placement subject to the satisfaction of certain conditions, including, among other things: the availability of certain current public information about the Company, the resale occurring not less than one year
after a party has purchased and paid for the security to be sold, the sale being through 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, as amended) and the number of shares being sold during any three-month period not exceeding specified limitations. 
  

	
	 Signature of Participant:

	
	 /s/ Ernest Mario

	 Ernest Mario

	
	 Date:                     ,
            

  

 2 

 EXHIBIT C 
  
 CONSENT OF SPOUSE 
  
 I, Mildred Mario, spouse of Ernest Mario have read and approve the foregoing Restricted Unit Agreement. In consideration of granting of the right to my
spouse to purchase Class One Common Units of Reliant Pharmaceuticals, LLC as set forth in the Agreement, I hereby appoint my spouse as my attorney-in-fact in respect to the exercise of any rights under the Agreement and agree to be bound by the
provisions of the Agreement insofar as I may have any rights in said Agreement 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 Agreement. 
  
 Dated:
                    ,              
  

	
	 /s/ Mildred M. Mario

	 Printed name: Mildred M. MarioNegotiated Settlement Agreement btwn. Reliant Pharmaceuticals & Joseph Krivulka

 Exhibit 10.17 
  
 NEGOTIATED SETTLEMENT AGREEMENT, RELEASE, 
 AND COVENANT NOT TO SUE 
  
 FOR AND IN CONSIDERATION of the mutual promises, covenants, and agreements made in this agreement (this “AGREEMENT”) by and between Joseph J. Krivulka (“EMPLOYEE,” a term which includes EMPLOYEE
himself, EMPLOYEE’s spouse, and all assigns, heirs, and successors in interest) and RELIANT PHARMACEUTICALS, INC. (“RELIANT,” a term which for the purposes of this Agreement includes RELIANT, any and all parent, subsidiary, and
affiliate corporations), the parties agree as follows: 
  
 1. Termination of
Employment 
  
 EMPLOYEE voluntarily resigned his employment with RELIANT
on November 12, 2004 (“TERMINATION DATE”), whereupon all benefits and privileges related thereto ceased, except as set forth herein. 
  
 2. No Admissions 
  
 RELIANT and EMPLOYEE agree that the entry of the parties into this Agreement, and the agreements contained herein, are not and shall not be construed to be an admission of liability on the part of any party hereto or
any parties hereby released or held harmless. 
  
 3. Adequacy of
Consideration 
  
 The parties agree that RELIANT has no obligation to
EMPLOYEE to make the payments or arrangements set forth herein independent of this Agreement. The parties further acknowledge the adequacy of the “additional consideration” provided herein by each to the other, that this is a legally
binding document, and that they intend to comply with and be faithful to its terms. EMPLOYEE acknowledges that he has received payment for all salary, accrued but unused vacation and reimbursement for all reimbursable business expenses accrued
through the TERMINATION DATE and except for the payments under this Agreement, or benefits in which he is vested under RELIANT’s employee benefit plans, and that he has received all amounts to which he is otherwise entitled. 
  
 4. Payments to EMPLOYEE 
  
 In partial consideration for the promises of EMPLOYEE set forth herein, RELIANT agrees to
pay EMPLOYEE the following amounts on the terms described in this Section 4: 
  

	 	a.	 FIVE HUNDRED SIXTY TWO THOUSAND FIVE HUNDRED DOLLARS AND NO CENTS ($562,500.00) to be paid as follows: (i) THREE HUNDRED THOUSAND DOLLARS AND NO CENTS ($300,000.00)
within fourteen (14) days after EMPLOYEE executes this Agreement, (ii) ONE HUNDRED THOUSAND DOLLARS AND NO CENTS ($100,000.00) on the last business day of the first calendar quarter of 

  

					
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2005, (iii) ONE HUNDRED THOUSAND DOLLARS AND NO CENTS ($100,000.00) on the last business day of the second calendar quarter of 2005 and (iv) a final
installment of any remaining balance on the last business day of the third calendar quarter of 2005. 

  

	 	b.	TWO HUNDRED THOUSAND DOLLARS AND NO CENTS ($200,000.00) to be paid to EMPLOYEE at such time as bonuses for 2004 are paid to members of RELIANT’s senior management; provided
that the payment described in this Section 2(b) shall be subject to the terms of that certain side letter dated November 3, 2004 from EMPLOYEE to RELIANT for the benefit of Diversified Capital, L.L.C. (“DC”) instructing RELIANT to pay over
of 50% of the after-tax proceeds of any bonus payment made by RELIANT to EMPLOYEE directly to DC in respect of that certain Second Amended and Restated Secured Promissory Note dated November 3, 2004 made by EMPLOYEE in favor of DC (the “DC
NOTE”). 

  

	 	c.	The payments made pursuant to this Section 4 shall be (i) reduced by statutorily required deductions and (ii) made in accordance with RELIANT’s normal payroll practices.

  

	 	d.	RELIANT will make the above-stated payments to EMPLOYEE notwithstanding any set-off agreements which may have previously existed between RELIANT and EMPLOYEE and regardless of
whether he obtains any employment or income from any other source after the Termination Date. 

  

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

  

	 	f.	Other than as set forth herein, RELIANT is not obligated to pay EMPLOYEE any other compensation. 

  

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

  
 5. Other Benefits

  
 In further consideration for the promises of EMPLOYEE set forth herein,
RELIANT agrees to: 
  

	 	a.	 pay the premiums applicable to EMPLOYEE and/or his dependents pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”) to the
extent that EMPLOYEE and/or his dependents elect to continue coverage under RELIANT’S group health or dental plans as available under COBRA. Such coverage shall be subject to the terms of the applicable policies that RELIANT may have in place
from time to time for 

  

					
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similarly situated employees. RELIANT’s obligations to pay such premiums shall expire on the earlier of December 31, 2005 or the date EMPLOYEE and/or
his dependents become covered under any other health plan or policy, whether or not Employee and/or his dependent’s rights to continue coverage under COBRA have ceased. 

  

	 	b.	RELIANT agrees to maintain the life insurance policy that has been collaterally assigned to DC in connection with the DC Note until the 30th day following the maturity date of the DC Note. 

  

	 	c.	RELIANT agrees to accelerate to the Termination Date the vesting of options to purchase 32,500 shares RELIANT’s common stock owned by EMPLOYEE that would have otherwise vested
on December 31, 2004. As a result of this acceleration, EMPLOYEE will have a total of 117,500 vested options to purchase RELIANT common stock. All such options shall continue to be governed by the Reliant Pharmaceutical, LLC Equity Incentive Plan
originally adopted as of July 6, 2000 (as amended) and the agreements pursuant to which such options were granted, except as otherwise provided in this Agreement. Otherwise, all unvested options shall terminate effective as of the TERMINATION DATE.

  

	 	d.	RELIANT agrees to amend the vested options held by EMPLOYEE to provide that such options shall be exercisable for the remainder of their 10 year term, and shall not expire if
unexercised after 30 days of his Termination Date. 

  

	 	e.	Nothing in this Agreement is intended to accelerate, alter or reduce any other vested or accrued benefits (if any) to which EMPLOYEE may be entitled under RELIANT’s 401(k)
Plan. 

  

	 	f.	In the event that EMPLOYEE breaches any of the provisions of this Agreement, then RELIANT shall have no further obligation to make the premium payments under Sections 5(a) and (b),
and all vested and unexercised options then held EMPLOYEE shall automatically terminate and no longer be exercisable. Additionally, RELIANT shall have the right to repurchase any shares acquired by EMPLOYEE after the 30th day following his Termination Date upon exercise of vested options, at a repurchase price equal to the price paid by EMPLOYEE
to exercise such option. 

  
 6. EMPLOYEE’s Full Release
of All Claims 
  
 In consideration for the undertakings and promises of
RELIANT set forth in this Agreement, EMPLOYEE unconditionally releases, discharges, and holds harmless (a) RELIANT, its officers, directors, shareholders, employees, agents, attorneys, suppliers and contractors and (b)(i) all lineal descendants of
Nicholas J. Pritzker, deceased, and all spouses and adopted children of such descendants, (ii) all trusts for the benefit of any person described in clause (i) and the trustees of such trusts, (iii) all legal representatives of any person or trust
described in clauses (i) or (ii) and (iv) all persons or entities controlling, controlled by or under common 

  

					
	Initials:         	 	3	 	Initials:         

 
control with any person, trust or entity described in clauses (i), (ii), (iii) or (iv), and each of the respective officers, directors, managers, employees,
direct and indirect equity holders, representatives, subsidiaries, attorneys and agents, and their predecessors, successors and assigns of the persons or entities described in the immediately preceding clauses (herein collectively referred to as
“RELEASEES”), from each and every claim, cause of action, right, liability or demand of any kind and nature, and from any claims which may be derived therefrom (collectively referred to as “claims”), that EMPLOYEE had, has, or
might claim to have against RELEASEES at the time EMPLOYEE executes this Agreement, including but not limited to any and all claims: 
  

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

  

	 	b.	relating to the termination of EMPLOYEE’s employment with RELIANT, the surrounding circumstances thereof, or any communications about the termination of EMPLOYEE’s
employment; 

  

	 	c.	relating to payment of any attorney’s fees for EMPLOYEE; 

  

	 	d.	based on discrimination on the basis of race, color, religion, sex, national origin, handicap, disability, age or any other category protected by law under Title VII of the Civil
Rights Act of 1964, the Civil Rights Act of 1991, Executive Order 11246, the Equal Pay Act, the Americans With Disabilities Act, the Rehabilitation Act of 1973, the Age Discrimination in Employment Act of 1967, the Older Workers Benefits Protection
Act, COBRA, the Employee Retirement Income Security Act of 1974, the New Jersey Law Against Discrimination (as any of these laws may have been amended) or any other similar labor, employment or anti-discrimination laws; 

  

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

  

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

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

  
 EMPLOYEE covenants not to sue RELIANT or any RELEASEES on account of any
claim released hereby. EMPLOYEE further covenants not to accept, recover or receive any monetary damages or any other form of relief which may arise out of or in connection with any administrative remedies which may be filed with or pursued
independently by any governmental 

  

					
	Initials:         	 	4	 	Initials:         

 
agency or agencies, whether federal, state or local. EMPLOYEE represents and warrants that he has not assigned or transferred, in any manner, including by
subrogation or operation of law, any portion of any claim, action, complaint, charge or suit encompassed by the releases set forth in this Agreement. 
  
 8. On The Job Illness or Injury At The Time of Execution 
  
 EMPLOYEE has no knowledge or claim of any condition, symptom or events that could give rise to or be the result of any on the job illness or injury. 
  
 9. Return of Property 
  
 EMPLOYEE agrees that he has not removed any RELIANT property from RELIANT’s premises,
except as authorized by RELIANT in writing, or that EMPLOYEE will return all of RELIANT’s property immediately upon execution of this Agreement. Such property includes, but is not limited to, the original and any copies of any confidential
information or trade secrets, all RELIANT-issued vehicles, computers, PDA’s keys, pass cards, customer lists, files, brochures, documents or computer disks or printouts, equipment and any other item relating to RELIANT and its business.
Further, EMPLOYEE agrees that he has not taken, procured, or copied any property of RELIANT on or after the Termination Date. 
  
 10. Cooperation in Legal Matters 
  
 In consideration for the promises and payments by RELIANT pursuant to this Agreement, EMPLOYEE agrees to cooperate to the fullest extent possible in the preparation,
defense or prosecution of any legal matters involving RELEASEES about which EMPLOYEE has or may have personal knowledge (other than EMPLOYEE termination or any other claim he may bring against RELEASEES), including any such matters which may be
filed after the termination of EMPLOYEE employment. 
  
 11. Cooperation in
Professional Transition of Business Affairs 
  
 In consideration for the
promises and payments by RELIANT pursuant to this Agreement, EMPLOYEE agrees to cooperate to the fullest extent possible in the professional transition of those business-related matters for which he was responsible during EMPLOYEE’s employment
with RELIANT. 
  
 12. No Interest in Reinstatement 
  
 EMPLOYEE hereby acknowledges that EMPLOYEE has no interest in reinstatement, reemployment or
employment with RELIANT, and EMPLOYEE forever waives any interest in or claim of right to any future employment by RELIANT. EMPLOYEE further covenants not to apply for future employment with RELIANT. 
  

					
	Initials:         	 	5	 	Initials:         

 13. Confidentiality Regarding This Agreement 
  
 Except as otherwise expressly provided in this Section 13, the parties agree that the terms and conditions of this Agreement are and shall
be deemed to be confidential and hereafter shall not be disclosed to any other person or entity. The only disclosures excepted by this Section 13 are (a) as may be required by law; (b) the parties may tell prospective employers the dates of
EMPLOYEE’s employment, positions held, evaluations received, EMPLOYEE’s duties and responsibilities and salary history with RELIANT; (c) the parties may disclose the terms and conditions of this Agreement to their attorneys, accountants
and/or tax advisors; (d) RELIANT may disclose this Agreement, its terms and conditions to financing sources, investment bankers, advisors to such persons and in connection with an organic transaction; provided that the receiving party is subject to
an obligation of confidentiality to RELIANT and (e) the parties may disclose the terms and conditions of this Agreement to their respective spouses, if any, provided, however, that EMPLOYEE makes EMPLOYEE’s spouse aware of the confidentiality
provisions of this paragraph and EMPLOYEE’s spouse agrees to keep the terms of this Agreement confidential. 
  
 14. Resignations 
  
 EMPLOYEE hereby resigns as an officer and director of RELIANT, each of its subsidiaries and any committees of the boards of directors of RELIANT and each of its subsidiaries. 
  
 15. Assignment 
  
 This Agreement shall be binding upon EMPLOYEE and shall not be subject to assignment or delegation by EMPLOYEE without RELIANT’s
express written consent. This Agreement shall likewise be binding upon RELIANT and its successors and assigns, and shall be subject to assignment by RELIANT, without EMPLOYEE’s consent, (a) to any affiliate of RELIANT or (b) to any third-party
in connection with (i) the sale of all or substantially all of the assets of RELIANT or (ii) a merger, consolidation or similar transaction involving RELIANT. This Agreement shall inure to the benefit of and be enforceable by the parties hereto, and
their respective heirs, personal representatives, successors and assigns. 
  
 16. Severability 
  
 If any provision of this Agreement is
held to be invalid, illegal or unenforceable, such provision shall be severed and enforced to the extent possible or modified in such a way as to make it enforceable, and the invalidity, illegality or unenforceability thereof shall not affect the
validity, legality or enforceability of the remaining provisions of this Agreement; provided, however, that both parties acknowledge and agree that the general release contained in Section 6, and the covenants in Sections 7 and 24 hereof are
essential terms of this Agreement. If any of Section 6 or Sections 7 and 24 is held to be unenforceable by an arbitrator pursuant to Section 22 or a court of competent jurisdiction, the remaining provisions of this Agreement shall be enforceable at
RELIANT’s sole discretion. 
  

					
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 17. Governing Law 
  

This Agreement shall be governed by and interpreted and construed in accordance with the laws of the State of New Jersey without reference to its internal conflict of
law principles. 
  
 18. Expenses 
  
 Each of RELIANT and EMPLOYEE shall bear its/his own costs and expenses in connection with
the negotiation and documentation of this Agreement. 
  
 19.
Counterparts 
  
 This Agreement may be executed in counterparts, each
of which shall be an original, but all of which shall constitute one and the same instrument. 
  
 20. Jurisdiction and Venue 
  
 The
parties irrevocably agree that all actions to enforce an arbitrator’s decision pursuant to Section 22 of this Agreement may be instituted and litigated in federal, state or local courts sitting in Newark, New Jersey and each of such parties
hereby consents to the jurisdiction and venue of such court, waives any objected based on forum non conveniens and any right to a jury trial as set forth in Section 21 of this Agreement. 
  
 21. Waiver of Jury Trial 
  
 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. 
  
 22. Arbitration 
  
 Notwithstanding anything herein to the
contrary, in the event that there shall be a dispute among the parties arising out of or relating to this Agreement, or the breach thereof, the parties agree that such dispute shall be resolved by final and binding arbitration in Newark, New Jersey,
administered by the American Arbitration Association (the “AAA”), in accordance with the New Jersey Alternative Procedure for Dispute Resolution Act, AAA’s Commercial Arbitration Rules and the Federal Rules of Civil Procedure relating
to the production of evidence. The parties agree that the arbitrator may impose sanctions in his or her discretion to enforce compliance with discovery and other obligations. Such arbitration shall be presided over by a single arbitrator. If
EMPLOYEE, on the one hand, and RELIANT, on the other hand, do not agree on the arbitrator within fifteen (15) days after a party requests arbitration, the arbitrator shall be selected by 

  

					
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RELIANT 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. 
  
 23. No Reliance Upon Other Statements 
  
 This Agreement is entered into without reliance upon any statement or representation of any
party hereto or parties hereby released other than the statements and representations contained in writing in this Agreement. 
  
 24. Survival of Certain Covenants in the Amended Employment Agreement 
  
 The parties recognize that certain terms of the Amended and Restated Employment Agreement, dated July 6, 2000 (as amended, the
“EMPLOYMENT AGREEMENT”), are intended to survive EMPLOYEE’s termination, including, but not limited to Section 7 (Confidentiality; Insider Trading), Section 8 (Assignment of Inventions), all subsections of Section 9 (Covenants Not to
Compete) other than subsections (b) and (c), Section 15 (Binding Effect), Section 23 (Waiver of Jury Trial), 24 (Arbitration). To the extent that any conflicts may arise between this Agreement and the surviving sections of the Employment Agreement,
this Agreement shall be deemed controlling. 
  
 25. Entire Understanding

  
 The parties acknowledge that this Agreement contains the entire
understanding of the parties and that it may not be modified without the express written consent of the parties hereto. 
  
 26. No Waiver 
  
 Any failure by any party to enforce any of their rights and privileges under this Agreement shall not be deemed to constitute waiver of any rights and privileges contained herein. 
  

					
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 27. Full and Knowing Waiver 
  
 By signing this Agreement, EMPLOYEE certifies that: 
  

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

  

	 	b.	EMPLOYEE was advised by RELIANT in writing, via this Agreement, to consult with an attorney before signing this Agreement; 

  

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

  

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

  
 28. Revocation of Agreement 
  
 EMPLOYEE may revoke this Agreement within seven (7) calendar days after signing it. To be effective, such revocation must be received in writing by Dr. Ernie Mario
personally at RELIANT Pharmaceutical, Inc., 110 Allen Road Liberty Corner, New Jersey 07938. Revocation can be made by hand delivery, telegram, facsimile, or postmarking before the expiration of this seven (7) days period. None of the obligations of
RELIANT under this Agreement shall be effective in the event that EMPLOYEE revokes this Agreement pursuant to this Section 28. 
  
 IN WITNESS WHEREOF the undersigned hereunto set their hands to this Agreement on the dates written below. 
  

					
	 Joseph J. Krivulka
 (“EMPLOYEE”)
	 	 RELIANT Pharmaceutical, Inc.
 (“RELIANT”)

			
	 /s/ Joseph J. Krivulka

	 	By:	 	 /s/ Ernest Mario

	 	 	Authorized Signature
		
	 November 18, 2004

	 	 Ernest Mario

	Date	 	Name
		
	 	 	 Chief Executive Officer

	 	 	Title
		
	 	 	 November 22, 2004

	 	 	Date

  

					
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