Document:

EXHIBIT 10.22

 

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.

 

2

 

(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 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.

 

3

 

(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.

 

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.

 

4

 

[SIGNATURE PAGE FOLLOWS]

 

5

 

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

 

	
   

  	
  RELIANT
  PHARMACEUTICALS, 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

  	
   

  	
   

  
	
   

  	
  Ernest Mario

  
	
   

  	
   

  
	
   

  	
  Residence Address:

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  

 

6

 

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.

 

2

 

(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

 

4

 

his or her own tax liability that may arise as a
result of this investment or the transactions contemplated by this Agreement.

 

(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,

 

5

 

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.

 

6

 

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

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
  Ernest Mario

  	
   

  
	
   

  	
  Its:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Address:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

7

 

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:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Ernest Mario

  
	
   

  	
   

  
	
   

  	
  Date:

  	
   

  	
  ,

  	
   

  	
   

  
							

 

2

 

EXHIBIT C

 

CONSENT OF SPOUSE

 

I,                                        ,
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:

  	
   

  	
  ,

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Printed name:EXHIBIT 10.23

 

RELIANT PHARMACEUTICALS, INC.

 

2004 EQUITY INCENTIVE PLAN

 

RESTRICTED STOCK AGREEMENT

 

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

 

I.                                         NOTICE
OF GRANT

 

Ernest Mario

20 Greenhouse Drive

Princeton, NJ
08540

 

You (the
“Participant”) are hereby granted Common
Stock (the “Shares”) in Reliant
Pharmaceuticals, Inc. (the “Company”),
subject to the terms and conditions of the Plan and this Restricted Stock
Agreement (as amended from time to time, the “Agreement”).
The terms of your grant are set forth below:

 

	
  Grant Date:

  	
   

  	
  November 15, 2005

  
	
   

  	
   

  	
   

  
	
  Vesting Commencement
  Date:

  	
   

  	
  June 30, 2005

  
	
   

  	
   

  	
   

  
	
  Restricted Shares
  Granted:

  	
   

  	
  425,000

  

 

Vesting
Schedule:

 

The Shares
subject to this Agreement (the “Restricted Shares”)
shall vest according to the following schedule:

 

Participant
shall vest in 1/3 of the Restricted Shares (141,666 Restricted Shares) on each
anniversary of the
Vesting Commencement Date, so that all of the Restricted Shares shall be
vested and no longer subject to the restrictions of and forfeiture under this
Agreement on the third anniversary of the Vesting
Commencement Date; provided, however,
that Participant shall be fully vested in all of the Restricted Shares and no
longer subject to the restrictions of and forfeiture under this Agreement upon:
(i) the effective date of a Change of Control (as defined below); (ii) your
Termination of Service (as defined below) by the Company without Cause or by
you for Good Reason (as defined in your Employment Agreement); (iii) your death
or (iv) your Disability.

 

 

Restricted
Shares shall vest only for so long as Participant remains an Employee, Director
or Consultant with the Company and its Subsidiaries.

 

“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 Directors 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.

 

II.                                     AGREEMENT

 

1.                                       Grant
of Restricted Shares. Effective on the Grant Date, the Company hereby
grants to the Participant the number of Restricted Shares set forth in the
Notice of Grant.

 

2.                                       Notwithstanding
anything to the contrary anywhere else in this Agreement, this grant of
Restricted Shares is subject to the terms, definitions and provisions of the
Plan, the Participant’s Amended and Restated Employment Agreement dated November
15, 2005  (as amended from time to
time, the “Employment Agreement”) and the
Stockholders’ Agreement dated April 1, 2004 (as amended from time to time, the “Stockholder’s Agreement”) which are incorporated herein by
reference.

 

3.                                       Vesting.
Participant shall vest in the Restricted Shares as set forth in the Notice of
Grant. For purposes of this Agreement, the Restricted Shares shall vest based
upon Participant’s continued status as an Employee of the Company and its
Subsidiaries. Upon termination of Participant’s status as an Employee, the
unvested portion of the Restricted Shares (“Unvested Shares”)
shall be forfeited. The vested portion of the Restricted Shares (“Vested Shares”) shall be subject to the Company’s Right of
First Refusal and Call Right under Sections 6 and 7 hereof.

 

4.                                       Forfeiture. For the purposes of this Agreement, the term “Termination of Service” shall mean
Participant’s service with the Company is terminated for any reason, whether
such termination is occasioned by Participant, by the Company or any of its
Subsidiaries, with or without cause or by mutual agreement.  For this
purpose, if Participant’s employment with the Company is terminated but
Participant remains a member of the Company’s Board of Directors, he shall not
have incurred a Termination of Service.  Participant’s Termination of
Service should occur when Participant no longer serves as an Employee, Director
or Consultant with the Company. In the event a Termination of Service

 

2

 

occurs that is not either by the Company
without Cause or by the Participant for good reason, Participant’s right to
vest in the Restricted Shares under this Agreement will terminate and any Unvested
Shares will be forfeited effective as of the date that Participant gives or is
provided with written notice of Termination of Service.  In the event a
Termination of Service occurs that is by the Company without Cause or by the
Participant for good reason, then the Participant shall immediately become
fully vested in all of the Restricted Shares and no longer subject to the
restrictions of and forfeiture under this Agreement as set forth above.

 

5.                                       Rights
and Obligations as a Stockholder. The Participant shall have all rights of
a stockholder with respect to the Restricted Shares as provided in the Stockholders’
Agreement. By executing this Agreement, Participant, without further action on
his or her part, agrees to be deemed a party to, a signatory of and bound by
the Stockholders’ Agreement, and the Restricted Shares shall be subject to such
rights and restrictions as contained therein. Participant shall enjoy rights as
a stockholder and shall be subject to all of the limitations, restrictions and
obligations contained in the Stockholders’ Agreement as a stockholder, until
such time as Participant is no longer the holder of the Shares or the Company
and/or its assignee(s) exercises the Right of First Refusal or the Call Right
provided in this Agreement or otherwise in the Stockholders’ Agreement. 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 the Stockholders’ Agreement.
This Agreement shall not affect in any way the ownership, voting rights or
other rights or duties of Participant, except as specifically provided herein.

 

6.                                       Participant’s
Rights to Transfer Restricted Shares.

 

(a)                                  Limitations
on Transfer. The Unvested Shares or any interest or right therein or part
thereof may not be disposed of by transfer, alienation, anticipation, pledge,
hypothecation, encumbrance, assignment or any other means, whether such
disposition be voluntary or involuntary or by operation of law by judgment,
levy, attachment, garnishment or any other legal or equitable proceedings
(including bankruptcy), and any attempted disposition thereof shall be null and
void and of no effect. Participant may transfer Vested Shares subject to the
restrictions contained in this Section 6 and the Stockholders’ Agreement;
provided however no Shares may be transferred (i) to a direct competitor of the
Company and its Subsidiaries as determined by the Board of Directors or (ii)
for consideration other than cash.

 

(b)                                 Company’s
Right of First Refusal. Before any Vested 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 Vested Shares
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 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 transferee (“Proposed Transferee”);
(iii) the Vested 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

 

3

 

“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 Vested Shares
repurchased under this Section shall be the Offered Price.

 

(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 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 and 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 that the provisions of this Section and
this Agreement, as applicable, shall continue to apply to the Vested Shares in
the hands of 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 Vested 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 Restricted Shares during the
Participant’s lifetime or on the Participant’s death by will or intestacy to
the Participant’s Immediate Family shall be exempt from the Right of First
Refusal. Participant’s Immediate Family includes Participant’s and Participant’s
Immediate Family’s trusts, foundations, partnerships and other family entities.
In such case, the transferee or other recipient shall receive and hold the
Restricted Shares so Transferred subject to the provisions of this Section,
Section 4, Section 7 and this Agreement, as applicable, and there shall be no
further Transfer of such Restricted Shares 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 Restricted Shares 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

 

4

 

effective by the Securities and Exchange Commission under the
Securities Act of 1933, as amended (a “Public Offering”).

 

7.                                       Company
Call Right.

 

(a)                                  If
Participant incurs a Termination of Service, the Company shall have the right
to purchase any or all of the Vested Shares of the Participant at a price equal
to the Fair Market Value of the Vested Shares on the date the Participant has a
Termination of Service (the “Call Right”).

 

(b)                                 The
Company may exercise the Company Call Right by delivering personally or by
registered mail to the Participant within ninety (90) days of the date on which
Participant has a Termination of Service, 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 Shares to a
bank selected by the Company. The Company shall avail itself of this option by
a notice in writing to the Participant 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 has a Termination of Service, the Company Call Right shall
terminate.

 

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

 

8.                                       Lock-Up
Period. Participant hereby agrees that if so requested by the Company (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 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.

 

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

 

5

 

10.                                 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, administrators, successors and assigns.

 

11.                                 Arbitration. Except as provided in Sections 15 hereof, in the event that there
shall be a dispute among the parties arising out of or relating to this
Agreement, or the breach thereof, the parties agree that such dispute shall be
resolved by final and binding arbitration in 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 Executive 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.

 

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.                                 Entire
Agreement. The Plan and Stockholders’ Agreement are incorporated herein by
reference. This Agreement, the Plan, the Investment Representation Statement attached
as Exhibit A to this Agreement and the Stockholders’ Agreement
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.

 

6

 

15.                                 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 11 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.

 

16.                                 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 B.

 

17.                                 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 11 OF THIS AGREEMENT.

 

18.                                 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.

 

19.                                 No Right to Employment. PARTICIPANT
ACKNOWLEDGES AND AGREES THAT THE RESTRICTED SHARES 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 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.

 

20.                                 Representations
of Participant. Participant acknowledges that he or she has received, read
and understood the Plan, the Stockholders’ Agreement, this 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
Committee upon any questions arising under this Agreement.

 

21.                                 Dividends
and Voting. Participant shall be entitled to receive all dividends paid on
and will be entitled to vote the Restricted Shares.

 

22.                                 Withholding.
The Company has the authority to deduct or withhold, or require you to remit to
the Company, an amount sufficient to satisfy applicable federal, state, local
and

 

7

 

foreign taxes arising from this Agreement. You may satisfy your tax
obligation, in whole or in part, by either: 
(i) direct payment in cash; (ii) electing to have the Company withhold
shares of Restricted Shares otherwise deliverable with a Fair Market Value
equal to the minimum amount of the tax withholding obligation; (iii)
surrendering to the Company previously owned Shares with a Fair Market Value
equal to the minimum amount of the tax withholding obligation; or (iv) through
such other means as may be approved by the Committee.

 

23.                                 Certificates.
The Company shall cause the Restricted Shares to be issued and a stock
certificate or certificates representing the Restricted Shares to be registered
in your name or held in book entry form promptly upon execution of this
Agreement, but if a stock certificate or certificates are issued, they shall be
delivered to, and held in custody by the Company until the shares of Restricted
Shares vest and the applicable restrictions lapse at the times specified above,
or such shares of Restricted Shares are otherwise forfeited. If issued, each
such certificate will bear the following legend:

 

The
shares of stock represented by this certificate are subject to forfeiture and
the transferability of this certificate and the shares of stock represented
hereby are subject to the restrictions, terms and conditions (including
restrictions against transfer) contained in  the
Reliant Pharmaceuticals, Inc. 2004 Equity Award Plan and a Restricted Stock
Agreement dated November 15, 2005 entered into between the
registered owner of such shares and Reliant Pharmaceuticals, Inc. A copy of the
Agreement is on file in the office of the Secretary of Reliant Pharmaceuticals,
Inc.  110 Allen Road,
Liberty Corner, New Jersey 07938.

 

Following the vesting of any shares of Restricted Shares,
the Company will cause to be issued and delivered to you certificates
evidencing such shares, free of the legend provided above.

 

[Signature Page to Follow]

 

8

 

IN
WITNESS WHEREOF, this Agreement is deemed made as of the date first set forth
above.

 

 

	
   

  	
  RELIANT
  PHARMACEUTICALS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  110 Allen Road

  
	
   

  	
   

  	
  Liberty Corner, New Jersey 07938

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PARTICIPANT

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Ernest Mario

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  20 Greenhouse Drive

  
	
   

  	
   

  	
  Princeton, NJ 08540

  
							

 

9

 

EXHIBIT A

 

INVESTMENT REPRESENTATION STATEMENT

 

	
  PARTICIPANT:

  	
   

  	
  ERNEST MARIO

  
	
   

  	
   

  	
   

  
	
  COMPANY

  	
  :

  	
   

  	
  RELIANT PHARMACEUTICALS, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
  SECURITY

  	
  :

  	
   

  	
  COMMON STOCK

  
	
   

  	
   

  	
   

  	
   

  
	
  AMOUNT

  	
  :

  	
   

  	
  425,000 Shares

  
	
   

  	
   

  	
   

  	
   

  
	
  DATE

  	
  :

  	
   

  	
  November 15, 2005

  

 

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:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Ernest
  Mario

  
	
   

  	
   

  
	
   

  	
  Date:
  November 15, 2005

  

 

2

 

EXHIBIT B

 

CONSENT OF SPOUSE

 

I, Mildred Martha Mario, spouse of Ernest Mario, have read and approve
the foregoing Restricted Stock Agreement (the “Agreement”).
In consideration of granting Common Stock of Reliant Pharmaceuticals, Inc. to
my spouse 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.

 

	
   

  	
   

  
	
   

  	
  Mildred
  Martha Mario

  

 

Dated:
November 15, 2005.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}]]