Document:

EXHIBIT 10.2(b)

 

RELIANT
PHARMACEUTICALS, INC.

 

RESTRICTED
STOCK AWARD AGREEMENT FOR DIRECTORS

 

 

	
  

  Name:

  	
   

  	
   

  	
  Plan:

  	
  Reliant Pharmaceuticals, Inc.

  2007 Incentive Award Plan

  
	
  (“Participant”)

  	
   

  	
   

  
	
   

  	
  Grant:

  	
   

  
	
  Address:

  	
   

  	
  (the ”Restricted Stock”)

  
	
   

  	
   

  
	
   

  	
  Grant Date:

  
						

 

1. Grant:  Effective on the Grant Date, you have been
granted the number of shares of Restricted Stock set forth above by Reliant
Pharmaceuticals, Inc., a Delaware corporation (the “Company”),
in accordance with the provisions of the Reliant Pharmaceuticals, Inc.
2007 Incentive Award Plan (as amended from time to time, the “Plan”) and subject to the restrictions, terms and conditions
set forth herein.

 

2. Vesting:  Until vested, the shares of Restricted Stock may not
be transferred and shall be subject to forfeiture as provided in this
Agreement. The Restricted Stock shall be vested and no longer subject to the
restrictions of and forfeiture under this Agreement on the earliest to occur of
(i) the date you are not reappointed or re-elected as a member of the Board
of Directors of the Company (the “Board”) for
reasons other than Cause, (ii) your death, (iii) a Change of Control
or (iv) the decision of the Committee to vest all or any portion of the
Restricted Stock granted under this Agreement.

 

3. Forfeiture:  In the event of (i) your not being
reappointed to the Board by reason of Cause, (ii) your resignation from
the Board or (iii) the termination of your Board service for Cause, your
right to vest in the Restricted Stock under this Agreement will terminate and any
unvested shares of Restricted Stock will be forfeited effective on such date.

 

4. Nontransferable:  The Restricted Stock 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), until the date you are no
longer a member of the Board of Directors of the Company or upon a Change of
Control, and any attempted disposition prior thereto shall be null and void and
of no effect. The foregoing notwithstanding, transfers of the Restricted Stock may be
permitted for estate planning purposes with the prior written consent of the
Committee and subject in each case to the provisions of the Plan and the same
restrictions and forfeiture provisions under this Agreement that the Restricted
Stock had in your hands (the initial recipient of the Restricted Stock Award).

 

5. Dividends/Voting:   You will be entitled to receive all dividends
paid on and will be entitled to vote the shares of Restricted Stock.

 

6. Certificates:  The Company shall cause the Restricted Stock
to be issued and a stock certificate or certificates representing the
Restricted Stock 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 Stock become transferable. If issued, each such
certificate will bear the following legend:

 

 

The shares of stock represented by this certificate
are subject to forfeiture and other restrictions against transfer contained in  the Reliant Pharmaceuticals, Inc. 2007 Incentive Award
Plan and a Restricted Stock Award Agreement, 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.

 

In
addition, any such certificates will bear the legends required by the
Stockholders’ Agreement.

 

7. Lock-Up Period:  You agree 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, you will not sell or otherwise transfer any
Stock 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.

 

8. Agreement of Participant:  You, without further action on
your part, by execution of this Agreement agree to be deemed a party to, a
signatory of and bound by the Stockholders’ Agreement dated April 1, 2004 (as
amended from time to time, the “Stockholders’ Agreement”),
and the Stock shall be subject to such rights and restrictions as contained
therein. You acknowledge that you have received, read and understood the Plan,
this Restricted Stock Agreement and the Stockholders’ Agreement, and are
familiar with the terms and provisions of each. You agree to accept as binding,
conclusive and final all decisions or interpretations of the Committee upon any
questions arising under this Agreement.

 

9. No Other Rights:  The grant of a Restricted
Stock Award under the Plan is a one-time benefit and does not create any
contractual or other right to receive an award of Restricted Stock or benefits
in lieu of Restricted Stock in the future. Future awards of Restricted Stock,
if any, will be at the sole discretion of the Company, including, but not
limited to, the timing of the award, the number of shares and vesting
provisions.

 

10. Miscellaneous:  This Restricted Stock Award is granted under
and governed by the terms and conditions of the Plan. You acknowledge and agree
that the Plan has been introduced voluntarily by the Company, is discretionary
in nature, and in accordance with the provisions of the Plan may be
amended, cancelled or terminated by the Company, in its sole discretion, at any
time. By execution of this Agreement, you consent to the provisions of the Plan
and this Agreement. Defined terms used herein shall have the meaning set forth
in the Plan, unless otherwise defined herein.

 

 

	
  COMPANY:

  	
   

  	
  PARTICIPANT:

  
	
   

  	
   

  	
   

  
	
  RELIANT PHARMACEUTICALS, INC.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Print Name:

  
	
  Its:

  	
   

  	
   

  	
   

  

 

2EXHIBIT 10.3

 

RELIANT PHARMACEUTICALS, INC.

EXECUTIVE BONUS PLAN

 

I.              ESTABLISHMENT AND PURPOSE

 

Reliant Pharmaceuticals, Inc. (the “Company”) hereby establishes the Reliant Pharmaceuticals, Inc.
Executive Bonus Plan (as amended from time to time, the “Plan”).
The purpose of the Plan is to (i) attract and retain highly qualified
individuals; (ii) obtain from each the best possible performance; (iii) establish
a performance goal based on objective criteria; (iv) further underscore
the importance of achieving business objectives for the short and long term;
and (v) include in such individual’s compensation package an annual
incentive component which is tied directly to the achievement of those
objectives.

 

To the extent applicable, the Plan is intended to
qualify as performance-based compensation under Section 162(m) of the
Internal Revenue Code of 1986, as amended and the regulations issued thereunder
(the “Code”).

 

II.            EFFECTIVE DATE; TERM

 

The Plan will be effective as of November 15,
2005. Once effective, the Plan shall remain in effect until such time as it
shall be terminated by the Committee (as defined below). The Committee may terminate
the Plan at any time; provided, however that except in the event of a Change in
Control, the Committee may not terminate the Plan during any performance
period without payment of a pro rata portion of any bonus based on the period
of time elapsed during the performance period and a determination of the
Committee as to satisfaction of pro rata Performance Goals for such period. For
this purpose, “Change in Control” shall have the meaning set forth in the
Company’s 2004 Equity Incentive Plan, as amended from time to time and any
replacement plan thereof.

 

III.           ADMINISTRATION

 

The Plan shall be administered by the Compensation
Committee of the Board of Directors of the Company (the “Committee”);
provided, however, that upon expiration of the transition period set forth in
Treasury Regulation § 1.162-27(f) (the “Transition
Period”), the Committee shall consist solely of two or more members
who shall qualify as “outside directors” under Section 162(m) of the Code.

 

The Committee shall have full power to construe and
interpret the Plan, establish and amend rules and regulations for its
administration, and perform all other acts relating to the Plan, including
the delegation of administrative responsibilities, that it believes reasonable
and proper and in conformity with the purposes of the Plan.

 

Any decision made, or action taken, by the Committee
arising out of or in connection with the interpretation and/or administration
of the Plan shall be final, conclusive and binding on all persons affected
thereby.

 

 

IV.           ELIGIBILITY AND PARTICIPATION

 

Eligibility to participate in the Plan is limited to
senior executives of the Company as determined and selected by the Committee (each
a “Participant”).

 

V.            BUSINESS CRITERIA

 

A Participant may receive a bonus payment under
the Plan based upon the attainment of performance objectives which are
established by the Committee and relate to one or more of the following
corporate business criteria with respect to the Company or any of its
subsidiaries (the “Performance Goals”):  (i) net operating income (either before
or after interest, taxes, depreciation and amortization), (ii) economic
value-added (as determined by the Committee), (iii) sales or revenue, (iv) net
income (either before or after taxes), (v) cash flow (including, but not
limited to, operating cash flow and free cash flow), (vi) return on
capital, (vii) return on invested capital, (viii) return on
stockholders’  equity, (ix) return
on assets, (x) stockholder return, (xi) return on sales, (xii) gross or net
profit margin, (xiii) productivity, (xiv) expense, (xv) operating margin, (xvi)
operating efficiency, (xvii) customer satisfaction, (xviii) working capital
efficiency, (xix) earnings per share, (xx) price per share of common stock,
(xxi) market share, (xxii) gross profit, (xxiii) gross profit margin, any of
which may be measured either in absolute terms or as compared to any
incremental increase or as compared to results of a peer group.

 

VI.           BONUS DETERMINATIONS

 

Any bonuses paid to Participants under the Plan shall
be based upon objectively determinable bonus formulas that tie such bonuses to
one or more performance objectives relating to the Performance Goals. Bonus
formulas may be set for performance periods of one, two or three fiscal
years of the Company. A performance period may be concurrent or
consecutive. Participant need not be employed on the first day of a performance
period. If a Participant becomes eligible to participate in the Plan during a
performance period, the Committee shall determine if such Participant shall be
eligible to participate in an award for such performance period and whether or
not such award may be prorated for such period.

 

After the Transition Period, bonus formulas for
Participants shall be adopted for each performance period by the Committee no
later than the latest time permitted by Section 162(m) of the Code
(generally, for performance periods of one year or more, no later than 90 days
after the commencement of the performance period) and while the performance
relating to the Performance Goal(s) remain substantially uncertain within the
meaning of Section 162(m) of the Code.

 

Although the Committee may in its sole discretion
reduce a bonus payable to a Participant pursuant to the applicable bonus
formula, the Committee shall have no discretion to increase the amount of a
Participant’s bonus as determined under the applicable bonus formula.

 

After the Transition Period, the maximum bonus payable
to a Participant under the Plan shall not exceed $2,000,000 with respect to any
performance period.

 

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Unless otherwise provided in a written employment agreement
between a Participant and the Company, the payment of a bonus to a Participant
with respect to a performance period shall be conditioned upon the Participant’s
employment by the Company on the last day of the performance period; provided,
however, that the Committee may make exceptions to this requirement, in
its sole discretion, in the case of a Participant’s retirement, death or
disability.

 

After the Transition Period, no bonuses shall be paid
to Participants unless and until the Committee makes a certification in writing
with respect to the attainment of the performance objectives as required by Section 162(m)
of the Code

 

VII.         ADDITIONAL CONDITIONS

 

Once a bonus formula is established under Section VI
based on one or more of the Performance Goals, the Committee may with the
consent of the Participant establish (and once established, rescind, waive or
amend) additional conditions and terms of payment of awards (including but not
limited to the achievement of other financial, strategic or individual goals,
which may be objective or subjective) as it deems desirable in carrying
out the purposes of the Plan and may take into account such other factors
as it deems appropriate in administering any aspect of the Plan. However, the
Committee shall have no authority to increase the amount of a targeted award
granted to any Participant or to pay an award under the Plan if the Performance
Goal has not been satisfied.

 

The payment of an award to a Participant with respect
to a performance period shall be conditioned upon the Participant’s employment
by the Company on the last day of the performance period; provided, however, that in the discretion
of the Committee, awards may be paid to Participants who have retired or
whose employment has terminated after the beginning of the period for which an
award is made, or to the designee or estate of a Participant who died during
such period.

 

VIII.        PAYMENT OF AWARDS

 

All awards shall be paid in (i) cash or (ii) with
the consent of the Participant and the Committee, the equivalent value of
common stock of the Company (“Common Stock”)
based on the fair market value of the Common Stock on the date the bonus is
awarded, as determined by the Committee. The Committee may impose vesting
and other similar conditions upon any payment of awards made in Common Stock;
provided that any vesting terms shall not be longer than four years following
the date of payment in Common Stock. For this purpose fair market value shall
have the meaning set forth in the Company’s 2004 Equity Incentive Plan.

 

After the Transition Period
no awards shall be paid unless and until the Committee certifies, in writing,
that the amounts payable with respect to each award, and all awards in the
aggregate, do not exceed the limitations set forth in Section VI and that
the amount payable to each Participant does not exceed the amount of the
targeted award granted to the Participant at the beginning of the performance
period. Awards shall be paid as soon as practicable following the end of the
performance period, but in no event shall payment be made later than two and
one half months following the end of the performance period.

 

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IX.           SPECIAL AWARDS AND OTHER PLANS

 

Nothing contained in the Plan shall prohibit the Company
from granting awards or authorizing other compensation to any person under any
other plan or authority or limit the authority of the Company to establish
other special awards or incentive compensation plans providing for the payment
of incentive compensation to employees (including those employees who are
eligible to participate in the Plan).

 

X.            STOCKHOLDER APPROVAL

 

After the Transition Period, no awards shall be paid
under the Plan unless and until the Company’s stockholders shall have approved
the Plan and the Performance Goal as required by Section 162(m) of the
Code.

 

XI.           AMENDMENT OF THE PLAN

 

The Compensation Committee shall have the right to
amend the Plan from time to time or to repeal it entirely or to direct the
discontinuance of awards either temporarily or permanently; provided, however, that no amendment of
the Plan that changes the maximum award payable to any Participant or all
Participants in the aggregate, as set forth in Section VI, or materially
amends the definition of Performance Goals under Section V, shall be
effective before approval by the affirmative vote of a majority of shares
voting at a meeting of the shareholders of the Company.

 

XII.         RIGHTS OF PLAN PARTICIPANTS

 

Neither the Plan, nor the adoption or operation of the
Plan, nor any documents describing or referring to the Plan (or any part hereof)
shall confer upon any Participant any right to continue in the employ of the
Company or shall interfere with or restrict in any way the rights of the
Company, which are hereby expressly reserved, to discharge any Participant at
any time for any reason whatsoever, with or without cause.

 

No individual to whom an award has been made or any
other party shall have any interest in the cash or any other asset of the
Company prior to such amount being paid.

 

No right or interest of any Participant shall be
assignable or transferable, or subject to any claims of any creditor or subject
to any lien.

 

XIII.        MISCELLANEOUS

 

The Company shall deduct all federal, state and local
taxes required by law or Company policy from any award paid hereunder.

 

In no event shall the Company be obligated to pay to
any Participant an award for any period by reason of the Company’s payment of
an award to such Participant in any other period, or by reason of the Company’s
payment of an award to any other Participant or Participants in such period or
in any other period. Nothing contained in this Plan shall confer 

 

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upon any person any claim or right to any payments
hereunder. Such payments shall be made at the sole discretion of the Committee.

 

The Plan shall be unfunded. Amounts payable under the
Plan are not and will not be transferred into a trust or otherwise set aside. The
Company shall not be required to establish any special or separate fund or to
make any other segregation of assets to assure the payment of any award under
the Plan. Any accounts under the Plan are for bookkeeping purposes only and do
not represent a claim against the specific assets of the Company.

 

It is the intent of the Company that the Plan and
awards made hereunder shall satisfy and shall be interpreted in a manner that
satisfies any applicable requirements as performance-based compensation within
the meaning of Section 162(m) of the Code. Any provision, application or
interpretation of the Plan that is inconsistent with this intent to satisfy the
standards in Section 162(m) of the Code shall be disregarded.

 

Any provision of the Plan that is prohibited or
unenforceable shall be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions of the Plan.

 

The Plan and the rights and obligations of the parties
to the Plan shall be governed by, and construed and interpreted in accordance
with, the law of the State of Delaware (without regard to principles of
conflicts of law).

 

_   _  
_   _   _  
_   _   _

 

Adopted by Reliant Pharmaceuticals, Inc. on November 15,
2005.

 

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