Document:

EXHIBIT 10.48

 

PACKAGING AGREEMENT

 

This Agreement dated this 30th day of
October, 2002, by and between Cardinal Health PTS, Inc., a Delaware corporation
(“Cardinal Health”), having its principal packaging services offices at 3001
Red Lion Road, Philadelphia, Pennsylvania and Reliant Pharmaceuticals, LLC, a
Delaware limited liability company (“Purchaser”), having its principal offices
at 110 Allen Road, Liberty Corner, New Jersey 07938.

 

BACKGROUND

 

A.            Cardinal Health specializes in
packaging and related services for the pharmaceutical industry and has certain
technical and commercial information and know-how relating thereto.

 

B.            Purchaser is a company engaged in
the business of developing and commercializing pharmaceutical products.

 

C.            Purchaser desires to engage Cardinal
Health to provide certain services to Purchaser in connection with the
packaging of certain of Purchaser’s pharmaceutical products.

 

TERMS

 

In
consideration of the mutual promises made by the parties hereto and for good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, intending to be legally bound, the parties hereto agree as
follows:

 

1.             DEFINITIONS

 

The following terms as used in this Agreement
shall have the meanings set forth in this Article unless the context clearly
indicates to the contrary:

 

(a)           “Affiliate(s)” shall mean any corporation, firm, partnership
or other entity which controls, is controlled by or is under common control
with a party. For purposes of this definition, “control” shall mean the
ownership of at least fifty percent (50%) of the voting share capital of such
entity or any other comparable equity or ownership interest.

 

(b)           “Agency” shall mean any federal, state or local governmental
regulatory authority involved in regulating any aspect of the development,
market approval, sale, distribution or use of the Product, Packaging or
Packaged Product.

 

(c)           “Applicable Laws” shall mean all laws, statutes, rules,
regulations, and ordinances of any federal, state or local governmental authority,
including without limitation cGMP and the regulations of any Agency.

 

 

(d)           “Anniversary Date” means the date that is twelve consecutive
months subsequent to the Effective Date and each subsequent twelve month
period.

 

(e)           “cGMP” shall mean all the laws, regulations and standards
relating to the manufacture of the Product and the Packaging, including but not
limited to, the FDA current Good Manufacturing Practices, as set forth in Title
21 of the United States Code of Federal Regulations.

 

(f)            “Contract Year” means the twelve consecutive months from the
original Anniversary Date and each subsequent twelve month period.

 

(g)           “Delivery Date” shall mean the date set forth in the
relevant Purchase Order on which Cardinal Health must supply Purchaser with
Packaged Products, accepted by Cardinal Health pursuant to Section 5(c).

 

(h)           “Effective Date” shall mean the date set forth on page 1 of
this Agreement.

 

(i)            “Facility” shall mean Cardinal Health’s facility at 3001 Red
Lion Road, Philadelphia, Pennsylvania.

 

(j)            “FDA” shall mean the United States Food and Drug
Administration, and any successor agency thereto.

 

(k)           “Force Majeure” shall mean any of the following events or
conditions, provided that such event or condition did not exist as of the date
of execution of this Agreement, was not reasonably foreseeable as of such date
and is not reasonably within the control of either party and prevents as a
whole or in material part, the performance by a party of its obligations
hereunder:  acts of state or governmental
action, orders, legislation, regulations, restrictions, priorities or
rationing, riots, disturbance, war (declared or undeclared), strikes, lockouts,
slowdowns, prolonged shortage of energy supplies, interruption of
transportation, embargo (inability to procure or shortage of supply materials,
equipment or production facilities), delay of subcontractors or vendors, fire,
earthquake, flood, hurricane, typhoon, explosion and accident.

 

(l)            “Package/Packaging” shall mean the packaging of the Product
pursuant to the Specifications.

 

(m)          “Packaged Product” shall mean the Product as contained in
the Packaging.

 

(n)           “Product(s)” shall mean the products of Purchaser to be
packaged which are described in the Specifications.

 

(o)           “Purchase Order” shall mean a written document issued by
Purchaser to Cardinal Health in accordance with Section 5 hereof, authorizing    Cardinal Health’s performance of Packaging
and other related services pursuant to the terms of this Agreement.

 

(p)           “Shipment Ready Date” has the meaning specified in Section
3(b).

 

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(q)           “Specifications” shall mean the specifications for the
Packaging mutually agreed to by the parties and set forth in an attachment to
the Purchase Order. The Specifications may be amended or modified only upon the
written agreement of both parties.

 

2.             ENGAGEMENT OF CARDINAL
HEALTH

 

Cardinal
Health agrees to Package the Product and Purchaser agrees to purchase and pay
for the Packaging on the terms and conditions set forth in this Agreement.

 

3.             PAYMENT AND SHIPPING

 

(a)           Shipping.  Subject
to the following provisions, all Packaged Product will be delivered F.O.B. the
Facility. The common carrier shall be selected by Purchaser, and title and risk
of loss of the Packaged Product shall pass to Purchaser upon delivery by
Cardinal Health F.O.B. the Facility. Purchaser shall insure the Packaged
Product in transit.

 

(b)           Payment.
  Cardinal Health shall invoice Purchaser upon Cardinal Health’s
delivery of Packaging to the common carrier specified in Section 3(a) and
Purchaser shall make full payment to Cardinal Health except for amounts
disputed in good faith, at the address specified on the invoice, no later than
thirty (30) days from the date of such invoice; provided, however, that if
Purchaser has not notified Cardinal Health of the shipping instructions within
two business days of Purchaser’s receipt of Cardinal Health’s notice to
Purchaser that the Packaging subject to the applicable Purchase Order has been
completed and is ready to be delivered to a common carrier for delivery to
Purchaser in accordance with the terms of this Agreement (including Section 8)
(the “Shipment Ready Date”), then Cardinal Health may invoice Purchaser for
such Packaging as of the Shipment Ready Date. If Purchaser has not made payment
in full (except for amounts disputed in good faith) by the expiration of such
thirty (30) day period, Cardinal Health may, at its option elect to:  (i) charge a late payment fee on such unpaid
amount equal to one percent (1%) per month of such unpaid amount, (ii) suspend
any further deliveries hereunder until such amounts (except for amounts
disputed in good faith) are paid in full; or (iii) terminate this Agreement in
accordance with and subject to the requirements of Section 13(c)(ii). In the
event of such termination, the terms of Section 13(d) shall apply. In the event
that Purchaser has a good faith dispute over an amount invoiced by Cardinal
Health, Purchaser shall advise Cardinal Health in writing, within thirty (30)
days of the date of such invoice, which amounts are in dispute, a detailed
explanation of its reason for dispute, and copies of written documents in
support of its position, if applicable. If Purchaser does not provide Cardinal
Health with notice of a dispute within thirty (30) days of the date of the
invoice, the invoice will be deemed accepted as correct by Purchaser.

 

(c)           Advance
Payment.  If the Purchaser has not paid Cardinal Health for any
invoice within 90 days of the date of such invoice (except for any amounts
disputed by Purchaser in good faith) and Cardinal Health otherwise determines
in its sole discretion that Purchaser’s credit is impaired, Cardinal Health
shall have the right to require payment in advance before making any further
shipment of the Packaged Products. If Purchaser shall fail, within a reasonable
time, to make such payment in advance, or if Purchaser shall fail to make
payment when due, Cardinal Health shall have the right, at its option, to
suspend any further deliveries hereunder until such 

 

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default
is corrected, without thereby releasing Purchaser from its obligations under
this Agreement.

 

(d)           Failure
to Take Delivery.  If Purchaser fails to take delivery on any
scheduled Delivery Date, Purchaser shall be billed at that time for all
Packaged Product the delivery of which Purchaser fails to take, and on the
first of each month thereafter for reasonable administration and storage costs
of such Packaged Product.

 

4.             PRICE

 

(a)           Fees.  Cardinal
Health shall specify in a written quote its fees for Packaging any particular
Product. If such quote is acceptable to Purchaser, then Purchaser shall issue
to Cardinal Health a Purchase Order for such Packaging and attach a copy of the
quote. The parties agree, however, that a new quote will not be required from
Cardinal Health nor attached by Purchaser to any subsequent Purchaser Order(s)
if such subsequent Purchase Order(s) are identical to a prior Purchase Order
that had a quote attached to it and had been accepted by Cardinal Health. Any
tax (other than Cardinal Health’s income or franchise taxes), however
denominated and measured, imposed upon the Product or upon its manufacture,
Packaging, production, storage, inventory, sale, distribution, transportation,
delivery, use or consumption shall be paid by Purchaser.

 

(b)           Adjustment.  The
fees and cost Cardinal Health charges for the services and products it provides
to Purchaser under this Agreement is subject to adjustment once per Contract
Year, effective on each Anniversary Date of this Agreement, upon thirty (30)
days written notice from Cardinal Health to Purchaser, provided, however, that
any such increase in labor charges shall not exceed [***] percent ([***]%). All
price increases for raw materials and components will be passed through to
Purchaser without any markup in addition to any mark up applied by Cardinal
Health to such raw materials or components immediately prior to any price
increase charged by the suppliers of such raw materials or components. Upon
request, Cardinal Health shall provide reasonable supporting documentation for
such increases.

 

5.             FORECAST, PURCHASE AND SUPPLY

 

(a)           Purchase
and Supply.  During the Term of this Agreement and subject to
subsections (d) and (e) of this Section 5, Purchaser shall purchase and
Cardinal Health shall supply such quantities of Packaged Product as shall be
set forth on Purchase Orders issued by Purchaser to Cardinal Health under this
Agreement.

 

(b)           Forecasts.  Within
ten (10) days after the Effective Date, and thereafter on the first day of each
calendar month during the term of this Agreement, Purchaser will provide
Cardinal Health with a written twelve (12) month rolling forecast (commencing
with the immediately following month) of the quantity of Product which
Purchaser expects to require from Cardinal Health during each of the next
twelve (12) months (“Forecast”). The first three (3) months of such rolling
forecast shall be firm and binding upon Purchaser and Cardinal Health (“Firm 

 

	
  [***]:

  	
   

  	
  Certain information on this page has been omitted and filed
  separately with the Commission. Confidential treatment has been requested
  with respect to the omitted portions

  

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Commitment”),
and the following nine (9) months shall constitute non-binding good faith
estimates. Purchaser’s first forecast shall include (i) the required Delivery
Date for the binding portion of the forecast, (ii) the quantity of Product to
be delivered and (iii) the lot numbers to be applied to such Product.

 

(c)           Purchase
Order.  Purchaser shall submit Purchase Orders for the Firm
Commitment portion of the Forecast at least sixty (60) days prior to the
requested delivery date. Within ten (10) days of receipt of a Purchase Order
for the Firm Commitment portion of the Forecast, Cardinal Health shall notify
Purchaser in writing of Cardinal Health’s acceptance of such Purchase Order as
a binding order (subject to the requirements of subsections (d) and (e) of
Section 5). Such notification shall, as applicable, also confirm the Delivery
Date or specify alternate Delivery Dates.

 

(d)           Orders
Greater than Forecast.  Cardinal Health shall use its
commercially reasonable efforts within its existing capacity to supply the
quantity of Packaged Product ordered as set forth on the relevant Purchase
Order, regardless of the quantity forecast by Purchaser, subject to the
capacity limitations of Cardinal Health’s Packaging equipment and the Facility;
provided, however, that in the event that the quantity specified in the
Purchase Order does not (i) (x) exceed by 30% the quantity forecast for the
applicable month by the Purchaser and (y) exceed in any event one million
bottles or blisters per month and (ii) Purchaser has notified Cardinal Health
not later than eight (8) weeks before the date Cardinal Health is to begin the
Packaging pursuant to such Purchase Order, then Cardinal Health shall, subject
to subsection (c) of this Section 5, supply the quantity of Packaged Product
ordered as specified in the relevant Purchase Order.

 

(e)           Amendment
of Purchase Orders.  Cardinal Health will use commercially
reasonable efforts to accommodate a request by Purchaser to amend a Purchase
Order to increase or decrease the quantity of Packaged Product to be delivered,
provided, however, that the foregoing shall not affect or diminish Purchaser’s
liability under the Firm Commitment portion of the Forecast, or to amend any
other provision of the Specifications. Notwithstanding anything in this
Agreement to the contrary, and subject to agreement on any pricing increase as
described below, Cardinal Health will agree to amend any particular Purchase
Order once to (i) increase the quantity of Packaged Product to be delivered if
(x) such amendment does not increase the quantity of Packaged Product by more
than 30% of the quantity of Packaged Product specified in the applicable
Purchase Order, (y) the maximum quantity of Packaged Product, after giving
effect to the amendment of such Purchase Order, does not in any event, exceed
one million bottles or blisters per month and (z) Purchaser has notified
Cardinal Health not later than eight (8) weeks before the date Cardinal Health
is to begin the Packaging pursuant to such Purchaser Order and (ii) to decrease
the quantity of Packaged Products to be delivered even with respect to the Firm
Commitment portion of the Forecast provided that the quantity of Packaged
Product under the amended Purchase Order shall be not less than 85% of the
quantity originally specified therein (such difference being the “Shortfall
Packaged Product”) and the Shortfall Packaged Product shall be added to
subsequent Purchase Orders issued by Purchaser within the Contract Year. In the
event such amendment would cause an increase in Cardinal Health’s cost of
performance of Packaging, Cardinal Health shall notify Purchaser of any pricing
increase that would be necessitated by Cardinal Health’s accommodation of such
request and, if Purchaser 

 

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agrees
to such price increase, the prices set forth on the relevant Purchase Order
shall be increased to reflect such increased cost.

 

(f)            Cancellations.  Purchaser
may cancel any Purchase Order by providing Cardinal Health written notice at
least forty-five (45) days prior to the Delivery Date. In the event that
Purchaser cancels any Purchase Order, Purchaser shall reimburse Cardinal Health
for direct costs reasonably incurred by Cardinal Health in connection with
performance of such Purchase Order up to the time of receipt of such notice.

 

(g)           Terms
of Agreement Govern.  No modification or amendment to this
Agreement shall be effected by or result from the receipt, acceptance, signing
or acknowledgement of any party’s purchase orders, Cardinal Health quotations,
invoices, shipping documents or other business forms containing terms or
conditions in addition to or different from the terms and conditions set forth
in this Agreement, and the terms of this Agreement shall supersede any
provision in any Purchase Order, Specification or other document that is in
addition to or inconsistent with the terms of this Agreement.

 

(h)           Savings.  Not
earlier than 60 days and not later than 30 days prior to each Anniversary Date,
representatives of Cardinal Health and Purchaser shall meet at a mutually
convenient location or telephonically to discuss any actual or potential
operational efficiency or savings that Cardinal Health has identified in the
performance of its obligations under this Agreement during the Contract Year. Cardinal
Health and Purchaser shall discuss which, if any, of these operational
efficiencies or savings may be implemented in the upcoming year.

 

6.             COMPLIANCE WITH AGENCY
REGULATIONS

 

The parties
agree to comply in all material respects with all Applicable Laws. Cardinal
Health shall be responsible for all the necessary permits and licenses for
Packaging of the Product; provided, however, that Purchaser shall
have sole responsibility for obtaining and maintaining all registrations,
permits, licenses and authorizations from all Agencies necessary or required
for the sale, distribution, shipping, Packaging with respect to any
requirements therefor specified in the New Drug Application applicable to the
Product (such as materials to be used in the Packaging), marketing, testing,
research, use or entering into commerce of any Product or Packaged Product.

 

7.             FACILITY

 

(a)           Packaging.  Cardinal
Health hereby agrees to perform the Packaging of the Product(s) at its Facility
and shall not Package the Product(s) at any other location without the prior
written consent of Purchaser.

 

(b)           Compliance
with Laws.  Cardinal Health shall comply, in all material
respects (except as provided in the subsequent sentence), with all Applicable
Laws relating to the services to be provided by Cardinal Health under this
Agreement. Without limiting the foregoing, Cardinal Health’s operation of the
Facility (and any other facility to which Purchaser may consent pursuant to
Section 7(a)) and Cardinal Health’s Packaging of the Product(s) shall (i) comply
in all respects with the Food Drug and Cosmetic Act of 1939, as amended from
time to time, and all rules and regulations of the FDA, including, without
limitation, cGMP and (ii) 

 

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comply
in all material respects with all other Applicable Laws; provided, however,
that Purchaser shall have sole responsibility for obtaining and maintaining all
registrations, permits, licenses and authorizations from all Agencies necessary
or required for the sale, distribution, shipping, Packaging with respect to any
requirements therefor specified in the New Drug Application applicable to the
Product (such as materials to be used in the Packaging), marketing, testing,
research, use or entering into commerce of any Product or Packaged Product.

 

(c)           Agency
Inspection.  Cardinal Health hereby agrees to advise Purchaser
promptly; but not later than two business days, of any proposed or, scheduled
or unannounced inspection of the Product(s), Packaged Products or Packaging
process or procedures by any Agency and will, to the extent practicable, permit
Purchaser to be present during any such inspection. If Purchaser is not present
during such an inspection, Cardinal Health shall promptly provide a report of
the results of the inspection to Purchaser.

 

(d)           Purchaser
Technical Representative.  During the term of this Agreement,
Purchaser shall have the right to have one or more technical representatives
present in the area of the Facility where the Packaging is being conducted
during the Packaging process to (i) review the Packaging process; (ii) review
any relevant records in connection with such Packaging process and assess its
compliance with cGMP and the Specifications; and (iii) discuss any related
issues with Cardinal Health’s management personnel. Purchaser’s technical
representatives, when on-site (including during any inspection conducted
pursuant to Section 7(c)), shall comply with Cardinal Health’s rules and
regulations. Purchaser shall indemnify and hold Cardinal Health and its
Affiliates harmless from all liability in accordance with the procedure set
forth in Section 15(c), including claims for workers’ compensation, resulting
from the presence of Purchaser’s technical representatives at the Facility,
except for liability resulting from the gross negligence or intentional
malfeasance of Cardinal Health, which liability Cardinal Health shall indemnify
and hold Purchaser and its Affiliates harmless from in accordance with the
procedure set forth in Section 15(c).

 

(e)           Audit.  Purchaser
shall have the right during normal business hours, and upon reasonable notice
to Cardinal Health, to inspect and audit in a reasonable manner those portions
of the Facility in which Packaging is conducted in order to ensure Cardinal
Health’s compliance with its obligations under this Agreement.

 

(f)            Product
Information.  Purchaser, at its expense, shall furnish Cardinal
Health with all available relevant health, safety and environmental information
concerning the Product to be Packaged by Cardinal Health hereunder, including
without limitation, material safety data sheets.

 

(g)           Product
Loss.  Cardinal Health shall use commercially reasonable efforts
to minimize waste and loss of the Product in the Packaging thereof, subject to
normal manufacturing losses (inclusive of all losses resulting from sampling,
testing and compliance with quality control requirements of Applicable Laws) of
up to five percent (5%) on an average annual basis of all Product delivered to
Cardinal Health. This percentage shall be reviewed six months from the
Effective Date and upon mutual agreement of the parties shall be revised and
documented in writing. Purchaser acknowledges that such range is acceptable for
purposes of Cardinal Health’s performance of its obligations under this
Agreement. Cardinal Health shall reimburse Purchaser for any loss of Product in
excess of the foregoing amount in an amount 

 

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equal
to Purchaser’s direct actual cost for making such replacement Product. Purchaser
will notify Cardinal Health of such costs in the form of a certificate signed
by the Purchaser’s Controller and a copy of the invoice of the manufacturer of
such Product if the manufacturer is an independent third party. Purchaser
acknowledges and agrees that Cardinal Health will not be responsible for
reimbursing Purchaser for any Product loss that arises from a discrepancy in
the amount of Product that Purchaser claims was delivered by or on Purchaser’s
behalf to Cardinal Health, as specified in Purchaser’s or its manufacturer’s
applicable records, and the amount of Product that Cardinal Health can
demonstrate it actually received, as evidenced by the batch records Cardinal
Health maintains for Product reconciliation.

 

8.             QUALITY OF PACKAGING

 

(a)           Sampling
and Testing of Packaged Products.  Cardinal Health is responsible
in all cases for sending Purchaser batch records and samples for Purchaser’s
review. Purchaser is responsible for all sampling and testing of the Packaged
Products to assure that the Packaging and the Packaged Products are in
conformity in all material respects with the Specifications set forth in the
Purchase Order. Prior to delivering any shipment of Packaged Products, Cardinal
Health shall provide Purchaser in all cases with a certificate of conformance
and, additionally, in cases where Cardinal Health has performed any analytical
testing of the Packaged Product, a certificate of analysis, in each case
certifying that the Packaging and Packaged Products conform in all material respects
to the Specifications. Purchaser, upon receipt of Packaged Products from
Cardinal Health, shall have ten (10) business days or, in the case of defects
not readily discernible without opening the Packaging or any components
thereof, until the earlier of (i) thirty (30) days after Purchaser becomes
aware of such defects or (ii) ninety (90) days after Purchaser receives such
Packaged Products to inspect and reject such Packaged Products. Any Packaged
Product that is not rejected by Purchaser within period set forth in the
immediately preceding sentence shall be deemed to have been accepted by
Purchaser. In the event Packaged Products do not conform in all material
respects to the Specifications set forth in the relevant Purchase Order,
Purchaser shall send to Cardinal Health via overnight delivery service or
certified mail, return receipt requested, within three (3) days of discovery of
the defect, a notice of rejection along with samples of the rejected Packaged
Products. Packaged Products that Cardinal Health agrees are defective or
non-conforming will be repackaged by Cardinal Health in accordance with Section
8(b). If Cardinal Health does not agree with Purchaser’s determination that the
Packaging or Packaged Products fail to meet the Specifications in all material
respects, the rejected Packaged Products shall be submitted to a mutually
acceptable third party testing laboratory (which, unless otherwise agreed by
the parties, shall be Lancaster Laboratories), which shall determine whether
such Products conform in all material respects to the Specifications. The
parties agree that such testing laboratory’s determination shall be final. Cardinal
Health shall be responsible for the fees of such third party testing laboratory
if such testing laboratory determines that the Packaging or Packaged Products
fail to meet the Specifications in all material respects and Purchaser shall be
responsible for such fees if such third party testing laboratory determines
that the Packaging and Packaged Products meet the Specifications in all
material respects.

 

(b)           Replacement
of Defective Packaged Products.  Subject to subsection (a),
Cardinal Health shall replace, at its sole expense, all defective or
non-conforming Packaging in excess of normal manufacturing losses for the
Product, as defined in Section 7(g). In the event Cardinal 

 

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Health
is required to replace defective or nonconforming Packaging pursuant to this
Section 8, Cardinal Health shall replace, at its cost, all defective or
nonconforming Packaged Product with conforming Packaged Product. In such event,
Cardinal Health shall supply, at its cost, the Packaging components necessary
to Package replacement Product and Purchaser shall supply to Cardinal Health,
at Purchaser’s expense, the Product necessary to Package the replacement
Product. Notwithstanding the foregoing, if the Product is adulterated or
impaired solely as a result of Cardinal Health’s failure to comply with
Specifications, the applicable certificate of analysis or any Applicable Law,
then Cardinal Health shall be responsible for the cost of the adulterated or
impaired Product necessary for the replacement of Packaging as set forth above,
provided, however, that Cardinal Health’s responsibility shall be limited to
Seventy Five Thousand Dollars ($75,000) per Purchase Order and One Hundred
Fifty Thousand Dollars ($150,000) in the aggregate in any month and that the
cost of the Product and documentation thereof shall be the same as set forth in
Section 7(g), Product Loss. THE OBLIGATION OF CARDINAL HEALTH TO REPLACE
DEFECTIVE OR NONCONFORMING PACKAGING OR PACKAGED PRODUCT SHALL BE PURCHASER’S
EXCLUSIVE REMEDY UNDER THIS AGREEMENT AND IS IN LIEU OF ANY OTHER WARRANTY,
EXPRESS OR IMPLIED. In complying with this Section 8, Cardinal Health shall not
be required to incur any costs or expenses in excess of the Packaging fees paid
by Purchaser to Cardinal Health for the Packaging of the defective Product.

 

9.             LIMITED WARRANTY

 

Cardinal
Health warrants that the Packaging provided hereunder shall comply in all
respects with the Food Drug and Cosmetic Act of 1939, as amended from time to
time, and all rules and regulations of the FDA, including without limitation
cGMP and in all material respects with the Specifications and all other
Applicable Laws. THE LIMITED WARRANTY SET FORTH IN THIS SECTION 9 IS IN LIEU OF
ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING ANY WARRANTY OF
MERCHANTABILITY AND ANY WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE. EXCEPT
FOR THE WARRANTIES EXPRESSED IN THIS SECTION 9, CARDINAL HEALTH MAKES NO OTHER
WARRANTY, EITHER EXPRESS OR IMPLIED, WITH RESPECT TO THE PACKAGING OF THE
PACKAGED PRODUCTS.

 

10.           GENERAL REPRESENTATIONS AND
WARRANTIES

 

(a)           Existence
and Power.  Each Party hereby represents and warrants to the
other Party that such Party (i) is duly organized, validly existing and in good
standing under the laws of the state in which it is organized, (ii) has the
power and authority and the legal right to own and operate its property and assets,
and to carry on its business as it is now being conducted, and (iii) is in
compliance with all requirements of Applicable Laws, except to the extent that
any noncompliance would not materially adversely affect such party’s ability to
perform its obligations under the Agreement.

 

(b)           Authorization
and Enforcement of Obligations.  Each Party hereby represents and
warrants to the other Party that such Party (i) has the power and authority and
the legal right to enter into the Agreement and to perform its obligations
hereunder and (ii) has taken all necessary action on its part to authorize the
execution and delivery of the Agreement and the performance 

 

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of
its obligations hereunder. The Agreement has been duly executed and delivered
on behalf of such Party, and constitutes a legal, valid, binding obligation,
enforceable against such Party in accordance with its terms.

 

(c)           No
Consents.  Each Party hereby represents and warrants to the other
Party that all necessary consents, approvals and authorizations of all Agencies
and other persons required to be obtained by such Party in connection with the
Agreement have been obtained.

 

(d)           No
Conflict.  Each Party hereby represents and warrants to the other
Party that the execution and delivery of the Agreement and the performance of
such party’s obligations hereunder and there under (i) do not conflict with or
violate any requirement of Applicable Laws or any material contractual
obligation of such Party and (ii) do not materially conflict with, or
constitute a material default or require any consent under, any material
contractual obligation of such Party.

 

(e)           Legal
Authority For Sale of Product.  Purchaser has (or will have,
prior to selling any Packaged Product) obtained all permits, licenses or
authorizations from any applicable Agency necessary or required for the sale,
marketing or entering into commerce of any Product.

 

(f)            No
Debarment.  Cardinal Health represents and warrants that it is
not debarred and that Cardinal Health has not and will not use in any capacity
in connection with the providing of Services the services of any individual or
person debarred by the FDA under the provisions of the Generic Drug Enforcement
Act of 1992, as amended, or any other Applicable Laws. If at any time this
warranty is no longer accurate or Cardinal Health receives any notice of
debarment from the FDA that relates to this warranty, Cardinal Health shall
immediately notify Purchaser of such changed circumstances. The attached
Exhibit A, FDA Declaration, reflects the current standing of the Facility
concerning cGMP compliance.

 

11.           INTELLECTUAL PROPERTY.

 

(a)           Purchaser
Representation and License Grant.  Purchaser represents and
warrants to Cardinal Health that Purchaser has all necessary authority and
right, title and interest in and to any patents, inventions and developments
related to the Products and the manufacturing and Packaging of the Products,
and Purchaser hereby grants to Cardinal Health a non-exclusive, royalty-free,
limited license to use any and all of such right, title and interest as may be
necessary for Cardinal Health to perform its obligations under this Agreement.

 

(b)           Infringement.  Purchaser
represents and warrants to Cardinal Health that the work to be performed by
Cardinal Health under this Agreement will not violate or infringe upon any
trademark, tradename, copyright, patent or other rights held by any person or
entity.

 

(c)           Cardinal
Health Representation.  Cardinal Health represents and warrants
to Purchaser that Cardinal Health has all necessary authority, right, title and
interest in any patents, inventions and developments related to Cardinal Health’s
processes for Packaging the Products and the services provided by Cardinal
Health under this Agreement; provided, however, that the foregoing
representation and warranty shall not apply to any processes for Packaging the
Products specified or provided by or on behalf of the Purchaser.

 

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(d)           Trademarks.  Each
Party acknowledges the validity of the title of the other Party to any and all
trademarks that may be used in conjunction with such other party’s performance
of its obligations hereunder. No right, title or interest in and to such
trademarks is granted by this Agreement, and each party agrees not to use the
other party’s trademarks other than in conjunction with such party’s
performance of its obligations hereunder.

 

(e)           Inventions.

 

(i)                                     If Cardinal Health or its agents or
employees make any invention, improvement or modification (whether or not
patentable) to the Product(s) or the use thereof (exclusive of packaging) in
the course of providing services under this Agreement, Cardinal Health shall
promptly disclose such invention, improvement or modification to Purchaser and
assign and/or cause its agents or employees to assign all rights, title and
interest in such invention, improvement or modification to Purchaser. Cardinal
Health shall execute such further documents and take such further actions as
are reasonable or necessary to fully vest in Purchaser such rights, title and
interest. Cardinal Health acknowledges and agrees that nothing in this Section
11(e)(i) shall limit in any way Purchaser’s rights to use, transfer or enjoy in
any way any such invention.

 

(ii)                                  If Purchaser or its agents or
employees make any inventions, improvements or modifications (whether or not
patentable) concerning the processes for the Packaging or the design or
modification of the Packaging of the Product in the course of the business
relationship under this Agreement, Purchaser shall promptly disclose such
invention, improvement or modification to Cardinal Health and assign and/or
cause its agents or employees to assign all rights, title and interest in such
invention, improvement or modification to Cardinal Health. Purchaser shall
execute such further documents and take such further actions as are reasonable
or necessary to fully vest in Cardinal Health such rights, title and interest. Purchaser
acknowledges and agrees that nothing in this Section 11(e)(ii) shall limit in
any way Cardinal Health’s rights to use, transfer or enjoy in any way such
invention.

 

12.           CONFIDENTIALITY

 

(a)           Confidentiality.  Cardinal
Health and Purchaser agree to keep secret and confidential any and all
information of the other party (“Confidential Information”) disclosed by the
other party hereunder or through any prior disclosure and not to disclose such
Confidential Information to any person or entity, except (i) to employees of
each party having a need to know the information in order to fulfill such party’s
obligations hereunder; or (ii) as required by an applicable Agency. The parties
shall use the Confidential Information solely for the purpose of carrying out
the obligations contained in the Agreement. The obligations imposed by this
Section shall not apply to any Confidential Information:

 

(i)                                     which at the time of disclosure is
in the public domain;

 

11

 

(ii)                                  which, after disclosure, becomes
part of the public domain by publication or otherwise, through no fault of the
receiving party;

 

(iii)                               which at the time of disclosure is
already in the receiving party’s possession, except through prior disclosure by
the disclosing party or its Affiliates, and such possession can be properly
documented by the receiving party in its written records, and was not made
available to the receiving party by any person or party owing an obligation of
confidentiality to the disclosing party;

 

(iv)                              which is rightfully made available
to the receiving party from sources independent of the disclosing party;

 

(v)                                 which is required to be disclosed in
the course of litigation or other legal or administrative proceedings; provided
that in all such cases the party receiving the Confidential Information shall,
to the extent permitted, give the other party prompt notice of the pending
disclosure and shall cooperate in such other party’s attempts, at such other
party’s sole expense, to seek an order maintaining the confidentiality of the
Confidential Information; or

 

(vi)                              which is required to be disclosed by
Applicable Laws; provided  that in all such cases the party
receiving the Confidential Information shall, to the extent permitted, give the
other party prompt notice of the pending disclosure and shall cooperate in such
other party’s attempts, at such other party’s sole expense, to seek an order
maintaining the confidentiality of the Confidential Information.

 

(b)           Term.  The
obligation of confidentiality and nonuse set forth in this Section 12 shall
survive for a period of ten (10) years beyond the termination or expiration of
this Agreement.

 

(c)           Ownership
of Confidential Information.  Confidential Information shall
remain the exclusive property of the disclosing party. In no event shall any of
either party’s Confidential Information, technology, know-how, intellectual
property (or rights thereto) become the property of the other party.

 

(d)           Purchaser
shall not release to any third party any non-public information with respect to
the terms of this Agreement without the prior written consent of Cardinal
Health with the exception of disclosure to a third party and/or the third party’s
advisors in connection with an investment in Purchaser, acquisition of or
merger with Purchaser, loan to Purchaser, licensing transaction related to a
pharmaceutical compound or other commercial agreement related to the sale,
marketing or distribution of a pharmaceutical compound, provided that Purchaser
requires said third party to enter into a confidentiality agreement on terms no
less restrictive than those contained herein, that Purchaser also remains
responsible for any disclosure by said third party, and that no disclosure will
be made in any event to any parties that are competitors of Cardinal Health.

 

12

 

13.           TERM AND TERMINATION

 

(a)           Term.  The
term of this Agreement, unless sooner terminated as provided below, shall begin
on the Effective Date and shall continue to the third anniversary of the
Effective Date. The Agreement may be renewed thereafter upon the mutual written
agreement of the parties.

 

(b)           Termination
Upon Notice.  Either party may terminate this Agreement at any
time upon one hundred eighty ( 180) days prior written notice to the other
party.

 

(c)           Immediate
Termination.  Either party shall have the right to immediately
terminate this Agreement if (i) the other party files a petition in bankruptcy,
or enters into an agreement with its creditors, or applies for or consents to
the appointment of a receiver or trustee, or makes an assignment for the
benefit of creditors, or suffers or permits the entry of an order adjudicating
it to be bankrupt or insolvent and such order is not discharged within thirty
(30) days; (ii) if either party materially breaches any of the provisions of
this Agreement, and such breach is not cured within thirty (30) days after the
giving of written notice, the party claiming the breach shall have the right to
terminate this Agreement; or (iii) if any required license, permit or
certificate required of the other party is not approved and/or issued, or is
revoked, by any applicable Agency; provided that such other party may no longer
appeal such decision or reapply or otherwise pursue such permit, license or
certificate. Material breach shall include, without limitation, breach of the
representation contained in section 10(f).

 

(d)           Duties
Upon Termination.  In the event of any termination, other than a
termination by either party as a result of a material breach by the other, Cardinal
Health shall complete delivery of any Packaged Product in accordance with any
Purchase Order open as of the date notice of termination is given hereunder. In
the event of any termination, Cardinal Health shall promptly, after completion
of any deliveries required by the immediately preceding sentence, return (i)
any remaining inventory of materials received from Purchaser or Purchaser’s
suppliers, (ii) all packaging components paid for by Purchaser, (iii) all
remaining inventories of the Product; and (iv) any other Product or material
being stored for Purchaser, to Purchaser at Purchaser’s expense. Cardinal
Health shall have no obligation to return the foregoing until all outstanding
invoices sent by Cardinal Health to Purchaser have been paid in full. Purchaser
shall also be required to pay, at the applicable price set forth in the
relevant Purchase Order for completed but not yet shipped Packaged Products,
Packaged Products in process and Packaged Products shipped but not yet invoiced.
In the event Purchaser breaches or terminates this Agreement or any Purchase
Order (other than as a result of a breach by Cardinal Health), Purchaser will
also be required to pay Cardinal Health for its direct cost of all materials
purchased by Cardinal Health for Packaging required under the Firm Commitment
and, if greater, in addition under any Purchase Orders accepted by Cardinal
Health that have not been used for Packaged Products delivered to Purchaser,
and Purchaser shall also pay an administrative fee of fifteen percent (15%) of
such amount in the event Purchaser breaches this Agreement. Purchaser shall
specify the location in the continental United States to which delivery, at
Purchaser’s expense, of the foregoing is to be made. Confidential Information
exchanged between Purchaser and Cardinal Health shall be promptly returned upon
termination of the Agreement.

 

(e)           Continuing
Obligations.   The rights and obligations of each of the parties
hereto under any provision of this Agreement, which, by its terms, is intended
to survive beyond the 

 

13

 

term
of this Agreement, shall continue notwithstanding the expiration or termination
of this Agreement for any reason.

 

14.           FORCE MAJEURE

 

If Cardinal
Health shall be delayed in making any delivery in whole or in part, by reason
of Force Majeure, such delay shall be excused during the continuance of and to
the extent of such Force Majeure; provided that if, as a consequence of any
such Force Majeure, the total demands for Cardinal Health’s products or
services cannot be supplied by Cardinal Health, Cardinal Health may, at its
option, allocate its available supply among Purchaser and its other customers
on such basis as Cardinal Health may deem fair and practicable, without liability
for any failure to perform this Agreement. Cardinal Health shall promptly
notify Purchaser of the termination of such event. Delivery shall be made and
taken as soon as reasonably possible after the removal of such cause, and the
time for performance of this Agreement shall be extended for a period equal to
the duration of such cause, provided that if such delay exceeds four (4)
months, either party may terminate this Agreement, subject to the duties set
forth in Section 13(d).

 

15.           INDEMNIFICATION

 

(a)           Indemnification
by Purchaser.  Purchaser agrees to indemnify and hold Cardinal
Health and its Affiliates, and their respective agents, employees, officers,
directors and representatives harmless from and against any and all costs,
expenses, liabilities, claims, damages, demands, actions, losses and fees,
including attorneys’ fees and costs, arising from third party claims the result
of (i) Purchaser’s sale, testing, shipping, sale, distribution, possession,
use, marketing or entering into commerce of any Product or Packaged Product,
except to the extent the result of Cardinal Health’s breach of this Agreement
or Cardinal Health’s gross negligence or willful misconduct, (ii) Purchaser’s
gross negligence or willful misconduct, (iii) Purchaser’s breach of this
Agreement, including, without limitation, any representations or warranties
under this Agreement, or (iv) any claim of infringement or alleged infringement
of any third party rights in respect of any Product or Packaged Product.

 

(b)           Indemnification
by Cardinal Health.  Cardinal Health agrees to indemnify and hold
Purchaser and its Affiliates, and their respective agents, employees, officers,
directors and representatives harmless from and against any and all cost,
expenses, liabilities, claims, damages, demands, actions, losses and fees,
including attorneys’ fees and costs, arising from third party claims (i) the
result of Cardinal Health’s breach of this Agreement (including without
limitation any breach of its representations under this Agreement), (ii)
Cardinal Health’s gross negligence or willful misconduct, or (iii) any claim of
infringement or alleged infringement of any third party rights in respect of
any Packaging.

 

(c)           Procedure
for Indemnification.  Upon receiving notice of any claim for
liability under this provision, the indemnified party shall promptly notify the
indemnifying party in writing; provided, however, that failure to give notice
shall not limit or otherwise reduce the indemnity provided for in this
Agreement except to the extent that the indemnifying party is prejudiced
thereby. The indemnifying party may, in its sole discretion, assume and conduct
the legal defense of the indemnified party in, and the settlement of, any suit
that could result in claims under this provision; provided, however,
that the indemnifying party will not, in defense 

 

14

 

of
any such lawsuit, except with the consent of the indemnified party, consent to
the entry of any judgment or enter into any settlement which does not include,
as an unconditional term thereof, the giving by the claimant or plaintiff to
the indemnified party of a release from all liability in respect thereof. If
the indemnifying party assumes the defense and settlement of a suit, the
indemnified party may elect to participate in, but not control, such defense
and settlement through counsel of its choosing and at its own expense. The
indemnification obligations under this Section 15 with respect to any suit are
contingent upon the indemnified party’s reasonable cooperation with the
indemnifying party, as reasonably requested by the indemnifying party, in the
defense and settlement of such suit.

 

16.           INSURANCE

 

(a)           During
the Term, Cardinal Health will obtain and maintain comprehensive general liability
insurance (including broad form general liability, completed operations and
product liability, personal injury liability, blanket contractual liability and
broad form property damage liability) with limits of not less than Five Million
Dollars ($5,000,000) combined single limit for bodily injury and property
damage liability per occurrence and annual aggregate. During the Term, Cardinal
Health will obtain and maintain worker’s compensation insurance as required
under applicable law and employer’s liability insurance with a limit of not
less than One Million Dollars ($1,000,000). With respect to all insurance
coverage required under this Section 17(a):

 

(i)                                     Cardinal Health will furnish
Purchaser with certificates of insurance evidencing at least the required
coverage as soon as practicable after the Effective Date and each anniversary
of the Effective Date during the Term); and

 

(ii)                                  Cardinal Health will endeavor to
have such policy include provisions for at least thirty (30) business days
prior written notice of any materials change or cancellation (whether for
non-payment or otherwise).

 

(b)           Purchaser.  During
the Term, Purchaser will obtain and maintain comprehensive general liability
insurance (including broad form general liability, completed operations and
products liability, personal injury liability, blanket contractual liability
and broad form property damage liability) with limits of not less than Ten
Million Dollars ($10,000,000) combined single limit for bodily injury and
property damage liability per occurrence and annual aggregate, containing a
cross liability or severability of interests clause. During the Term, Purchaser
will obtain and maintain worker’s compensation insurance as required under
applicable law and employer’s liability insurance with a limit of not less than
One Million Dollars ($1,000,000). With respect to such insurance coverage
required under this Section 17(b):

 

(i)                                     Purchaser will furnish Cardinal
Health with certificates of insurance evidencing at least the required coverage
as soon as practicable after the Effective Date and each anniversary of the
Effective Date during the Term; and

 

15

 

(ii)                                  Purchaser will endeavor to have such
policy include provisions for at least thirty (30) business days prior written
notice of any materials change or cancellation (whether for non-payment or
otherwise);

 

(iii)                               the comprehensive general liability
policy shall name Cardinal Health as an additional insured and this provision
shall be evidenced on the above referenced certificate of insurance being
provided to Cardinal Health.

 

17.           NOTICES

 

Notices or other communications required or
permitted by this Agreement shall be given in writing, and shall be deemed to
have been given three days after being deposited in the United States mail,
return receipt requested and postage prepaid, or on the day following delivery
of such notice to a major overnight delivery service. All notices shall be
addressed to the parties as follows:

 

To Cardinal
Health:

Cardinal Health PTS, Inc.

Packaging Group

3001 Red Lion Road

Philadelphia, PA 19114

Attn:  President

with a copy to:

Cardinal Health, Inc.

7000 Cardinal Place

Dublin, OH 43017

Attn:  General Counsel, Cardinal Health
Pharmaceutical

Technologies and Services

To Purchaser:

Reliant Pharmaceuticals, LLC

110 Allen Road

Liberty Corner, New Jersey 07938

Attn:  Director of Manufacturing and
Distribution

with a copy to:

Reliant Pharmaceuticals, LLC

110 Allen Road

Liberty Corner, New Jersey 07938

Attn:  General Counsel

 

16

 

18.           CHOICE OF LAW

 

The laws of
the Commonwealth of Pennsylvania applicable to contracts made and to be
performed in the Commonwealth of Pennsylvania shall govern any dispute arising
out of or under this Agreement.

 

19.           ASSIGNMENT

 

This Agreement
is not assignable by either party except with the written consent of the other
party; provided that either party may assign this Agreement without such
consent to any Affiliate of the assigning party or in connection with the sale
or transfer of all or substantially all of the business or assets of the
assigning party relating to the subject matter of this Agreement.

 

20.           LIMITATION OF LIABILITY

 

(a)           IN
NO EVENT SHALL CARDINAL HEALTH’S TOTAL LIABILITY UNDER THIS AGREEMENT,
INCLUDING, WITHOUT LIMITATION ANY OF CARDINAL HEALTH’S INDEMNITY OR OTHER
FINANCIAL OBLIGATIONS UNDER SECTION 15 OR ANY OTHER PROVISION OF THIS
AGREEMENT, EXCEED ONE MILLION DOLLARS ($1,000,000) EXCEPT FOR LIABILITY,
CLAIMS, DEMANDS, ACTIONS, LOSS, COST, EXPENSE OR FEE ARISING FROM THIRD PARTY
CLAIMS FOR INJURY SOLELY CAUSED BY CARDINAL HEALTH’S GROSS NEGLIGENCE OR
WILLFUL MISCONDUCT.

 

(b)           IN
NO EVENT SHALL EITHER PARTY BE LIABLE FOR ANY SPECIAL, INDIRECT, INCIDENTAL OR
CONSEQUENTIAL LOSSES, DAMAGES, COSTS OR EXPENSES OF ANY NATURE WHATSOEVER,
INCLUDING WITHOUT LIMITATION, LOSS OF REVENUES, PROFITS, DATA OR USE, WHETHER
IN CONTRACT OR TORT OR BASED ON A WARRANTY, EVEN IF THE OTHER PARTY HAS BEEN
ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

 

21.           ARBITRATION

 

If a claim,
dispute, controversy or disagreement (“Dispute”) arises between the parties in
connection with this Agreement, then the Dispute shall be presented to the
respective presidents of Cardinal Health and Purchaser for their consideration
and resolution. If the presidents cannot reach a resolution of the Dispute,
then such Dispute shall be resolved exclusively by submission to final, binding
and non-appealable arbitration (“Arbitration”). The Arbitration and all
pre-hearing, hearing and post-hearing arbitration procedures, including those
for disclosure and challenge, shall be conducted in accordance with the
Commercial Arbitration Rules (the “Commercial Rules”) of the American
Arbitration Association (the “Association”) in Philadelphia, Pennsylvania. The
substantive law of the Commonwealth of Pennsylvania shall be applied by the
arbitrator to the resolution of the Dispute, provided that the arbitrator shall
base his or her decision on the express terms, covenants and conditions of this
Agreement. The arbitrator shall be bound to make specific findings of fact and
reach conclusions of law, based on the submissions and evidence of the parties,
and shall issue a written decision explaining the basis for the decision and
award. The decision of the arbitrator shall be final and as an “award” within
the meaning of the Commercial Rules and judgment upon the arbitration award may
be 

 

17

 

entered in any court having jurisdiction, as if it were a judgment of
that court. Notwithstanding anything in this Section 21 to the contrary, the
parties shall be entitled to seek at any time during a Dispute injunctive
relief or other equitable remedies with respect to any Dispute from any court
of competent jurisdiction.

 

22.           RELATIONSHIP OF THE PARTIES

 

Nothing
contained in this Agreement shall create a joint venture or partnership between
the parties. Cardinal Health shall be an independent contractor in performing
its obligations. Neither party shall be liable for any of the debts or
obligations of the other and neither party shall have any authority or right to
act for or incur any liability of any kind, express or implied, on the name of
or on behalf of the other party.

 

23.           PUBLICITY

 

Neither party
will make any press release or other public disclosure regarding this Agreement
or the transactions contemplated hereby without the other party’s express prior
written consent, except as required under applicable law or by any governmental
agency, in which case the party required to make the press release or public
disclosure shall use commercially reasonable efforts to obtain the approval of
the other party as to the form, nature and extent of the press release or
public disclosure prior to issuing the press release or making the public
disclosure.

 

24.           MISCELLANEOUS

 

(a)           Entire
Agreement.  This Agreement and all Purchase Orders, Purchase
Order notifications, Cardinal Health quotations, and Specifications issued
pursuant to this Agreement, constitute the entire agreement between the parties
pertaining to the subject matter hereof and supersede all prior agreements,
understandings, negotiations and discussions, whether oral or written, of the
parties, and there are no warranties, representations or other agreements between
the parties except as specifically set forth herein.

 

(b)           Counterparts,
Signatures by Facsimile.  This Agreement may be executed in one
or more counterparts, each of which shall be deemed to be one and the same
Agreement. Any facsimile signature of any party hereto shall constitute a
legal, valid and binding execution hereof by such party.

 

(c)           Titles.  The
headings appearing at the beginning of the numbered Articles and at the
beginning of paragraphs have been inserted for convenience only and do not
constitute any part of this Agreement.

 

(d)           Modifications.  No
changes, modifications or waivers of any provision of this Agreement shall be
binding unless in writing and signed by a duly authorized representative of
each party.

 

(e)           Severability.  In
the event that any provision of this Agreement shall be determined to be
illegal or unenforceable, that provision will be limited or eliminated to the 

 

18

 

minimum
extent necessary so that this Agreement shall otherwise remain in full force
and effect and enforceable.

 

(f)            Waiver.  The
failure on the part of any party to exercise or enforce any rights conferred
upon it hereunder shall not be deemed to be a waiver of any such rights nor
operate to bar the exercise or enforcement thereof at any time or times
thereafter.

 

(g)           No
Strict Construction.  The language used in this Agreement will be
deemed to be the language chosen by the parties to express their mutual intent,
and no rules of strict construction will be applied against any party.

 

IN WITNESS
WHEREOF, Purchaser and Cardinal Health have executed
this Agreement on the date first set forth above.

 

 

	
  Reliant Pharmaceuticals, LLC

  	
   

  	
  Cardinal Health PTS, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By

  	
   

  	
   

  	
   

  	
  By

  	
   

  	
   

  
	
  Name:

  	
   

  	
  Name:

  
	
  Title:

  	
   

  	
  Title:

  

 

19EXHIBIT 10.48(a)

 

FIRST AMENDMENT TO PACKAGING AGREEMENT

 

This
Amendment (this “Amendment”) to that certain Packaging Agreement by and between
Cardinal Health PTS, LLC, successor by merger to Cardinal Health PTS, Inc. (“Cardinal
Health”) and Reliant Pharmaceuticals, Inc. (successor in interest to Reliant
Pharmaceuticals, LLC) (“Reliant”), dated as of October 30, 2002 (the “Agreement”),
shall be effective as of the last date executed below. Any capitalized terms
used and not otherwise defined herein shall have the meaning set forth in the
Agreement.

 

WHEREAS,
the parties now desire to amend the Agreement as set forth below to extend the
term of the Agreement upon the terms and conditions set forth in the Agreement.

 

NOW,
THEREFORE, in consideration of the mutual conditions and covenants set forth
herein, Cardinal Health and Reliant agree as follows:

 

1.                                       In accordance with Section 13 of the
Agreement, the term is extended for an additional three years commencing
October 31, 2005 and expiring November 1, 2008.

 

2.             Except as otherwise amended or modified by
this Amendment, the Agreement, and all previous amendments and all documents
and agreements contemplated thereby will remain unchanged and in full force and
effect.

 

3.             In the event of any conflict between the terms
of this Amendment, on the one hand, and the Agreement and all other documents
and agreements contemplated by any of the foregoing, on the other, the terms of
this Amendment will govern.

 

4.             This Amendment, the Agreement and all
documents and agreements contemplated by any of the foregoing, constitute the
entire agreement between the parties with respect to the subject matter hereof
and supersede all prior agreements and understandings of the parties relating
thereto.

 

5.             This Amendment may be modified or amended
only by written agreement of the parties hereto.

 

6.             This Amendment may be executed in
counterparts each of which will be deemed to be an original, but all of which
taken together will constitute one and the same instrument.

 

	
  CARDINAL HEALTH PTS, LLC

  	
   

  	
  RELIANT PHARMACEUTICALS,
  INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  	
  Date:

  	
   

  	
   

  

 

 

EXHIBIT A

 

Fee
Schedule

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