Document:

EXHIBIT 10.4

 

 

AMENDED AND RESTATED

RELIANT PHARMACEUTICALS, INC.

STOCK APPRECIATION RIGHTS PLAN

 

1.                                       PURPOSE
OF THE PLAN

 

The purpose of
the Reliant Pharmaceuticals, Inc. Stock Appreciation Rights Plan is to
provide employees of Reliant Pharmaceuticals, Inc. (the “Company”) and its
Subsidiaries with an incentive to promote the long-term performance of the
Company, by (a) tying their long-term incentives to the performance of the
Common Stock of the Company, (b) attracting and retaining as Employees,
Directors, and Consultants those persons whose abilities, experience and
judgment have contributed and will continue to contribute to the financial
success and progress of the Company, and (c) aligning the identity of
interests of those Employers, Directors and Consultants and the Company’s
shareholders.

 

Obligations of the
Company and its Subsidiaries under the Plan shall be unsecured and unfunded
obligations, and the holders of Rights shall be general creditors of the
Company.

 

2.                                       DEFINITIONS

 

1.             “Acquisition” means
(i) any consolidation or merger of the Company with or into any other
corporation or other entity or person in which the Company’s shareholders prior
to such consolidation or merger to own less than fifty percent (50%) of the
surviving entity’s voting power immediately after such consolidation or merger,
or (ii) a sale of all or substantially all of the assets of the Company in
a complete liquidation or dissolution of the Company.

 

2.                                       “Award Agreement” means an agreement entered
into between the Company and the Participant evidencing the terms of a Right.

 

3.                                       “Base Price” means such amount as determined
by the Committee, but will not be less than the Fair Market Value of a share of
Common Stock on the Grant Date.

 

4.                                       “Board of Directors” means the Board of
Directors of the Company, as it may be constituted from time to time.

 

5.                                       “Cause” shall mean a termination by the
Company of any Subsidiary of the Service Provider’s relationship due to: (i) the
commission by the Service Provider of an act of fraud against the Company or
any Subsidiary thereof or embezzlement; (ii) the unauthorized disclosure
of the Company’s or a Subsidiary’s confidential information which disclosure
the Service Provider knew or reasonably should have known could have the
potential to result in 

 

 

material damage to
the Company or any of its Subsidiaries; (iii) a breach of one or more of
the following duties to the Company or a Subsidiary:  (A) the duty of loyalty, (B) the
duty not to take willful actions which would reasonably be viewed by the
Company as placing the Service Provider’s interest in a position adverse to the
interest of the Company or a Subsidiary, (C) the duty not to engage in
self-dealing with respect to the Company’s or its Subsidiaries’ assets,
properties or business opportunities, (D) the duty of honesty or (E) any
other fiduciary duty which the Service Provider owes to the Company or a
Subsidiary; (iv) a conviction of the Service Provider (or a plea of nolo contendere in lieu thereof) for (A) a felony or (B) a
crime involving fraud, dishonesty or moral turpitude; (v) intentional
misconduct with respect to his/her duties to the Company or a Subsidiary,
including, but not limited to, knowing and intentional violation by the Service
Provider of written policies of the Company and its Subsidiaries or specific
directions of the Board of Directors or superior officers of the Company or a
Subsidiary, which policies or directives are neither illegal (or do not involve
illegal conduct) nor do they require the Service Provider to violate reasonable
business ethical standards; or (vi) the failure of the Service Provider,
after written notice from the Company and its Subsidiaries to render services
in accordance with his employment or other relationships with the Company and
its Subsidiaries, which failure is not cured within 10 days of receipt of such
notice.

 

6.                                       “Code” means the Internal Revenue Code of
1986, as amended.

 

7.                                       “Committee” means the Board of Directors or
a committee of the Board of Directors appointed to serve as the administrator
of the Plan.

 

8.                                       “Common Stock” means (i) the common
stock of the Company, par value $0.01 per share, as adjusted as provided in Section 7,
or (ii) if there is a merger or consolidation and the Company is not the
surviving corporation, the capital stock of the surviving corporation given in
exchange for such common stock of the Company.

 

9.                                       “Company” means Reliant Pharmaceuticals, Inc.,
a Delaware corporation.

 

10.                                 “Consultant” means any consultant or adviser
if: (i) the consultant or adviser renders bona fide services to the
Company or a Subsidiary; (ii) the services rendered by the consultant or
adviser are not in connection with the offer or sale of securities in a
capital-raising transaction and do not directly or indirectly promote or maintain
a market for the Company’s securities; and (iii) the consultant or adviser
is a natural person who has contracted directly with the Company or a
Subsidiary to render such services.

 

11.                                 “Director” means a member of the Board of
Directors of the Company or of any Subsidiary.

 

12.                                 “Disability” means the total and permanent
disability of a Participant within the meaning of Code Section 22(e)(3).

 

13.                                 “Employee” means any person, who is an
employee (within the meaning of Section 3401(c) of the Code) of the
Company or a Subsidiary. A Service Provider shall not cease to be an Employee
in the case of (i) any leave of absence approved by the Company or (ii) transfers
between locations of the Company or between the Company and any Subsidiary or
any successor. Neither service as a Director nor payment of a Director’s fee by
the Company shall 

 

 

be sufficient, by
itself, to constitute “employment” by the Company. The term employee shall not
include any person whose services with the Company are performed pursuant to a
contract that purports to treat the individual as an independent contractor
even if such individual is later determined (by a court, governmental agency or
otherwise) to be a common law employee of the Company rather than an
independent contractor, retroactively or otherwise.

 

14.                                 “Exchange Act” means the Securities Exchange
Act of 1934, as amended, and any successor statutes or regulations of similar
purpose or effect.

 

15.                                 “Exercise Date” means the date on which the
Participant elects to surrender his Right.

 

16.                                 “Expiration Date” means the date on which a
Right ultimately becomes unexercisable either by reason of the lapse of time or
otherwise.

 

17.                                 “Fair Market Value” of a share of Common
Stock as of a given date shall be (a) the closing price of a share of
Common Stock on the principal exchange on which shares of Common Stock are then
trading, if any (or as reported on any composite index which includes such
principal exchange), on such day or if no if shares were not traded on such
day, then on the next preceding date on which a trade occurred, or (b) if
Common Stock is not traded on an exchange but is quoted on a national market
system or other quotation system, the closing sales price for a share or for
Common Stock (or the closing bid, if no sales were reported) on such day or if
no sales or bids were made on such day, the immediately preceding date on which
sales or bids were reported, or (c) if Common Stock is not publicly traded
on an exchange and not quoted on a national market system or other quotation
system, the Fair Market Value of a share of Common Stock as determined by the
Committee acting in good faith which determination shall be final and binding.

 

18.                                 “Grant Date” means the date designated by
the Committee as the date of grant of a Right.

 

19.                                 “Participant” means a Service Provider who
has been granted a Right that has not been exercised, cancelled or forfeited
and which has not expired.

 

20.                                 “Plan” means the Reliant Pharmaceuticals, Inc.
Stock Appreciation Rights Plan, as amended from time to time.

 

21.           “Public Trading Date”
means the first date upon which the Common Stock is listed (or approved for
listing) upon notice of issuance on any securities exchange or designated (or
approved for designation) upon notice of issuance as a national market security
on an interdealer quotation system.

 

22.                                 “Right” means a stock appreciation right
entitling the Participant to the positive difference, if any, between the Fair
Market Value of the Common Stock on the Exercise Date and the Base Price.

 

23.                                 “Service Provider” means an Employee,
Director or Consultant.

 

 

24.                                 “Subsidiary” means (i) any corporation
the majority of the voting power of all classes of stock entitled to vote or
the majority of the total value of shares of all classes of stock of which is
owned, directly or indirectly, by the Company, or (ii) any trade or
business other than a corporation the majority of the profits interest, capital
interest or actuarial interest of which is owned, directly or indirectly, by
the Company.

 

“Vesting Date”
means the date on which a Right becomes fully exercisable by the Participant as
provided in Section 5(b).

 

“2007 Plan”
means the Reliant Pharmaceuticals, Inc. 2007 Incentive Award Plan, as
amended from time to time and any successor plan thereto.

 

3.                                       SHARES
SUBJECT TO THE PLAN

 

(a)                                  Number
of Shares. Subject to Articles 7 and 10, following the Public Trading Date,
the aggregate number of shares of Common Stock which may be issued upon
settlement of Rights under the Plan shall be                                  
shares of Common Stock. To the extent that a Right terminates, expires, or
lapses for any reason, any shares of Common Stock subject to the Award shall
again be available for the grant pursuant to the 2007 Plan. Additionally, any
shares of Common Stock tendered or withheld to satisfy tax withholding
obligation pursuant to any Right shall again be available for the grant
pursuant to the 2007 Plan.

 

(b)                                 Stock Distributed. Any Common Stock distributed
pursuant by the Plan may consist, in whole or in part, of authorized and
unissued Common Stock, treasury stock or Common Stock purchased on the open
market.

 

4.                                       ADMINISTRATION
OF THE PLAN

 

(a)                                  The
Plan will be administered by the Committee. The Committee may adopt its
own rules of procedure, and the action of a majority of the Board of
Directors or committee, as applicable, taken at a meeting or, to the extent
permitted by law, taken without a meeting by a writing signed by such majority
(or by all or such greater proportion of the members thereof if required by
law), shall constitute action by the Committee. The Committee shall have the
power, authority and the discretion to administer, construe and interpret the
Plan and Award Agreements, including without limitation, the discretion to
determine which Service Providers shall be Participants and the terms and
conditions, subject to the Plan, of the individual Award Agreements (including
without limitation the Base Price and the vesting schedule, if any). The
decisions and interpretations of the Committee with respect to any matter
concerning the Plan shall be final, conclusive and binding on all parties who
have an interest in the Plan. Any such interpretations, rules, and
administration shall be consistent with the basic purposes of the Plan. The Committee
will also have the authority to exercise such powers and perform such acts
with respect to the Plan and the Rights as the Committee deems necessary or
desirable to promote the best interests of the Company which are not in
conflict with the provisions of the Plan. Notwithstanding any provisions to the
contrary, the Board will also have all power and authority to perform any
act granted to the Committee pursuant to the Plan.

 

(b)                                 The
Committee may employ attorneys, consultants, accountants, appraisers, or
other persons. The Committee, the Company and its Subsidiaries, and the
officers 

 

 

and directors of the Company and its Subsidiaries
shall be entitled to rely upon the advice, opinions or valuations of any such
persons. All actions taken and all interpretations and determinations made by
the Committee in good faith shall be final and binding upon all Participants,
the Company and its Subsidiaries, and all other interested persons. No member
of the Committee shall be personally liable for any action, determination or
interpretation made in good faith with respect to the Plan or the Rights, and
all members of the Committee shall be fully protected by the Company with
respect to any such action, determination or interpretation.

 

5.                                       RIGHTS

 

(a)                                  Grant
of Rights. The Committee may, in its sole discretion, at any time and from
time to time grant Rights to any Service Provider. Each award of Rights will be
evidenced by an Award Agreement containing such terms and conditions not
inconsistent with the Plan as the Committee approves from time to time.

 

(b)                                 Vesting.
Each Right vests and becomes fully exercisable by the Participant on the
Vesting Date as specified by the Committee in the Award Agreement. Unless
otherwise specified by the Committee in the Award Agreement, a Participant’s
Rights shall terminate automatically on the date that the Participant ceases to
be a Service Provider for Cause. If the Participant is not vested as to his or
her entire Right on the date that the Participant ceases to be a Service
Provider for any reason other than Cause, that portion of the Rights in which
the Participant is not vested shall immediately be forfeited and terminate. If,
after termination as a Service Provider, the Participant does not exercise the
vested portion of the Right by its Expiration Date, the Right shall terminate.

 

(c)                                  Exercisability.
A Participant who is a Service Provider may exercise a Right on any date
which is on or after the Vesting Date, but on or before the Expiration Date. If
a Participant’s relationship as a Service Provider is terminated for any reason
whatsoever, such Participant may exercise the vested portion of the Right
within such period of time as set forth in the Award Agreement, but in no event
later than the Expiration Date. In absence of a specified time in the Award
Agreement vested rights that are not otherwise forfeited or expired shall
remain exercisable until the following dates:

 

(i)                               Twelve
(12) months after the date of termination due to death or Disability; or

 

(ii)                            Three
(3) months after the date of termination for any reason other than death
or Disability

 

Any Right not exercised
within the applicable period as described above will be forfeited and
terminated. Notwithstanding anything herein to the contrary, no Right may be
exercised before the Vesting Date or after the Expiration Date.

 

(d)                                 Term.
The term of each Right will be ten (10) years from Grant Date, unless
otherwise specified by the Committee in the Award Agreement. The Committee may,
from time to time, extend the Expiration Date of any Right upon such terms and
conditions as the Committee will determine.

 

 

(e)                                  No
Ordering. Rights may be exercised in any order, regardless of the
Grant Date or the existence of any other outstanding Right.

 

(f)                                    Whole
or Partial Exercise. A Right may be exercised by a Participant, to the
extent exercisable, in whole or in part.

 

(g)                                 Beneficiaries.
In the event of the death of a Participant, the person or persons to whom any
Right is transferred by will or the laws of descent and distribution will have
the right (prior to the Expiration Date) to exercise such Right in whole or in
part.

 

(h)                                 Committee
Discretion. Notwithstanding the foregoing, the Committee may, if it
believes circumstances warrant such action, authorize the exercise of a Right
that would otherwise have terminated.

 

6.                                       MANNER
OF EXERCISE

 

(a)                                  Notice
of Exercise. To the extent a Right is vested and exercisable as provided in
Section 5, a Participant (or, if applicable, his or her beneficiary), may exercise
all or any part of the Right by delivery of an exercise notice in the form and
manner as set forth in the Award Agreement.

 

(b)                                 Settlement
of Rights. Upon exercise of a Right, the Participant (or, if applicable,
his beneficiary) shall receive as set forth in the Right either a cash amount
or following the Public Trading Date shares of Common Stock with an aggregate
Fair Market Value that is equal to, less any required withholding, the product
of:

 

(i)                               the
difference between the Fair Market Value of a share of Common Stock on the
Exercise Date and the Base Price; multiplied by

 

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

 

Payment made in shares of
Common Stock shall be made only in whole shares. No fractional shares of Common
Stock shall be issued and the Committee shall determine, in its discretion,
whether cash shall be given in lieu of fractional shares or whether such
fractional shares shall be eliminated by rounding up or down as appropriate. Payment
may be made by cancellation of all or a portion of any outstanding
indebtedness of the Participant to the Company or any Subsidiary, or in
installments, plus interest, in the discretion of the Committee.

 

7.                                       DILUTION
AND OTHER ADJUSTMENTS

 

(a)                                  In
the event of any dividend or other distribution (whether in the form of
cash, additional Common Stock or other property), recapitalization,
reclassification, reorganization, merger, consolidation, split-up, spin-off,
combination, repurchase, liquidation, dissolution, or sale, transfer, exchange
or other disposition of all or substantially all of the assets of the Company,
or exchange of Common Stock or other securities of the Company, issuance of
warrants or other rights to purchase Common Stock or other 

 

 

securities of the Company, or other similar corporate
transaction or event, the Committee shall make equitable and proportionate
adjustments to reflect such change with respect to:

 

(i)                               the
kind of Common Stock (or other securities or property) with respect to which
Rights may be granted or awarded;

 

(ii)                            the
number and kind of Common Stock (or other securities or property) subject to
outstanding Rights;

 

(iii)                         the Base Price with respect to
any Right; and

 

(iv)                        the
aggregate number and type of shares that may be issued under the Plan (including,
but not limited to, adjustments of the limitation in Section 3(a)).

 

(b)                                 In
the event of any transaction or event described in Section 7(a), the
Committee, in its sole discretion, and on such terms and conditions as it deems
appropriate, either by the terms of the Award Agreement or by action taken
prior to the occurrence of such transaction or event and either automatically
or upon the Participant’s request, may take any one or more of the
following actions to reflect such change or to facilitate such transaction or
event:

 

(i)                               to
provide for the purchase of any Rights for an amount of cash and/or promissory
notes equal to the amount that the exercise of such Right would have yielded on
the relevant date;

 

(ii)                            to
provide that such Right shall be fully vested and exercisable, notwithstanding
anything to the contrary in the Plan or the provisions of such Right;

 

(iii)                         to provide that such Rights be
assumed by the successor or survivor entity, or a parent or subsidiary thereof,
or shall be substituted for by similar rights or awards covering the equity
securities of the successor or survivor corporation, or a parent or subsidiary
thereof, with appropriate adjustments as to the number and kind of equity and
base prices;

 

(iv)                        to
make adjustments in the number and type of Common Stock (or other securities or
property) subject to outstanding Rights, and/or in the terms and conditions of
(including the grant or base price), and the criteria included in, outstanding
Rights or which may be granted in the future; and/or

 

(v)                           to
make adjustments in the aggregate number and type of shares that may be
issued under the Plan (including, but not limited to, adjustments of the
limitation in Section 3(a)).

 

(c)                                  The
Committee may, in its discretion, include such further provisions and
limitations in any Award Agreement or certificate as it may deem equitable
and in the best interests of the Company.

 

 

(d)                                 If
the Company undergoes an Acquisition, then any surviving corporation or entity
or acquiring corporation or entity, or affiliate of such corporation or entity,
may assume any Rights outstanding under the Plan or may substitute
similar awards for those outstanding under the Plan. In the event any surviving
corporation or entity or acquiring corporation or entity in an Acquisition does
not assume such Rights or does not substitute similar awards for those
outstanding under the Plan, then with respect to (i) Rights held by
Participants whose status as a Service Provider has not terminated prior to
such event, the vesting of such Rights (and, if applicable, the time during
which such awards may be exercised) shall be accelerated and made fully
exercisable and all restrictions thereon shall lapse at least ten (10) days
prior to the closing of the Acquisition (and the Rights terminated if not
exercised prior to the closing of such Acquisition), and (ii) any other
Rights outstanding under the Plan, such Rights shall be terminated if not
exercised prior to the closing of the Acquisition.

 

(e)                                  All
adjustments and determinations made by the Committee under this Section 7
shall be made in the sole discretion of the Committee as it deems appropriate.

 

8.                                       CANCELLATION
OF RIGHTS

 

The Committee may cancel
all or any part of a Right with the written consent of the Participant
holding such Right. In the event of any cancellation, all rights of the former
Participant in respect of such cancelled Right will terminate.

 

9.                                       MISCELLANEOUS
PROVISIONS

 

(a)                                  Assignment
and Transfer. Rights may not be sold, pledged, assigned, hypothecated,
transferred or disposed of in any manner other than by will or the laws of
descent and distribution, and Rights may be exercised or otherwise
realized during the lifetime of the Participant only by the Participant or by
his or her guardian or legal representative.

 

(b)                                 No
Right to Rights or Employment. No Service Provider or other person will
have any claim or right to be granted a Right. Neither the Plan nor any action
taken hereunder will be construed as giving any Employee or Participant any
right to be retained in the employ of the Company or any Subsidiary.

 

(c)                                  Withholding.
The Company or any Subsidiary shall have the authority and the right to deduct
or withhold, or require a Participant to remit to the Company, an amount
sufficient to satisfy federal, state, local and foreign taxes (including the
Participant’s employment tax obligations) required by law to be withheld with
respect to any taxable event concerning a Participant arising as a result of
this Plan. Following the Public Trading Date, the Committee may in its
discretion and in satisfaction of the foregoing requirement allow a Participant
to elect to have the Company withhold shares of Common Stock otherwise issuable
pursuant to a Right (or allow the return of shares of Common Stock) having a
Fair Market Value equal to the amount required to be withheld. Notwithstanding
any other provision of the Plan, the number of shares of Common Stock which may be
withheld with respect to the 

 

 

vesting, exercise or payment of a Right (or which may be
repurchased from the Participant within six months after such shares of Common
Stock were acquired by the Participant from the Company) in order to satisfy
the Participant’s federal, state, local and foreign income and payroll tax
liabilities with respect to the vesting, exercise or payment of a Right shall
be limited to the number of shares which have a Fair Market Value on the date
of withholding or repurchase equal to the aggregate amount of such liabilities
based on the minimum statutory withholding rates for federal, state, local and
foreign income tax and payroll tax purposes that are applicable to such
supplemental taxable income.

 

(d)                                 Securities
Laws. Each Right will be subject to the condition that such Right may not
be exercised if the Committee determines that the exercise of such Right may violate
the securities laws or any other law or requirement of any governmental
authority. The Company will not be deemed by any reason of the granting of any
Rights to have any obligation to register the Rights or the Common Stock or
other equity securities underlying such Rights under the securities laws or to
maintain in effect any registration of such Rights or equity securities which may be
made at any time under the securities laws.

 

(e)                                  Severability.
Whenever possible, each provision in the Plan and in every Award Agreement will
be interpreted in such manner as to be effective and valid under applicable
law, but if any provision of this Plan or any Award Agreement made thereunder
will be held to be prohibited by or invalid under applicable law, then (i) such
provision will be deemed amended to, and to have contained from the outset such
language as will be necessary to, accomplish the objectives of the provision as
originally written to the fullest extent permitted by law, and (ii) all
other provisions of the Plan and each Award Agreement will remain in full force
and effect.

 

(f)                                    No
Strict Construction. No rule of strict construction will be applied
against the Company, the Committee or any other person in the interpretation of
any of the terms of the Plan, any Right or any rule or procedure
established by the Committee.

 

(g)                                 Stockholder
Rights. A Participant will not have any dividend, voting or other
stockholder rights by reason of a grant of a Right or settlement of a Right.

 

(h)                                 Governing
Law. The Plan will be governed by and construed in accordance with the laws
of the State of Delaware.

 

10.                                 AMENDMENT
AND TERMINATION

 

The Committee may at
any time amend, suspend or terminate the Plan; provided, however, that (a) to
the extent necessary and desirable to comply with any applicable law,
regulation, or stock exchange rule, the Company shall obtain stockholder
approval of any Plan amendment in such a manner and to such a degree as
required, and (b) stockholder approval is required for any amendment to
the Plan that (i) increases the number of shares available under the Plan
(other than any adjustment as provided by Article 7), or (ii) results
in a material increase in benefits or a change in eligibility requirements. No amendment,
suspension or termination of the Plan shall adversely affect in any material
way any Right previously granted pursuant to the Plan without the prior written
consent of the Participant.

 

 

11.                                 EFFECTIVE
DATE OF THE PLAN

 

The Plan was
originally effective April 1, 2004. This Amended and Restated Plan shall
be effective on the date it is approved by a majority vote of the stockholders
of the Company at a duly held meeting of stockholders or by written consent.

 

I hereby certify that the foregoing Amended and
Restated Plan was duly adopted by the Board of Directors of Reliant
Pharmaceuticals, Inc. on                                                 ,
2007.

 

Executed on
this               
day of                                   ,
2007.

 

 

	
   

  	
   

  
	
   

  	
  SecretaryExhibit 10.4(a)

 

AWARD
AGREEMENT PURSUANT TO

RELIANT
PHARMACEUTICALS, INC.

STOCK
APPRECIATION RIGHTS PLAN

 

This Award Agreement (this “Agreement”), made
as of the          day of                     ,
200   (the “Grant Date”), by RELIANT PHARMACEUTICALS, INC., a
Delaware corporation (hereinafter called the “Company”), with                                         
(hereinafter called the “Participant”);

 

This Agreement is made under the terms of the
Reliant Pharmaceuticals, Inc. Stock Appreciation Rights Plan, as amended and
continued from time to time (the “Plan”). The Plan is incorporated
herein by reference and made a part of this Agreement and shall control the
rights and obligations of the Company and the Participant. Except as otherwise
provided herein, terms used herein shall have the meaning ascribed in the Plan.
To the extent, if any, that there may exist a conflict between the Plan and
this Agreement, the Plan shall prevail.

 

1. Grant of Rights. The Company hereby grants
to the Participant Rights with respect to             
shares of the Company’s Common Stock at a Base Price per share of $            
(the “Rights”), on the Grant Date subject to the terms and conditions of the
Plan and this Agreement.

 

2. Vesting. The Participant shall vest in the
Rights according to the following schedule:

 

	
  Period Elapsed from Vesting
  Date

  	
   

  	
  Vesting in Rights

  	
   

  
	
  Prior to First
  Anniversary of Vesting Date

  	
   

  	
  0

  	
  %

  
	
  First
  Anniversary of Vesting Date

  	
   

  	
  25

  	
  %

  
	
  Second
  Anniversary of Vesting Date

  	
   

  	
  50

  	
  %

  
	
  Third
  Anniversary of Vesting Date

  	
   

  	
  75

  	
  %

  
	
  Fourth
  Anniversary of Vesting Date

  	
   

  	
  100

  	
  %

  

 

Notwithstanding
the foregoing, if the Participant ceases to be a Service Provider for Cause,
then the Participant shall forfeit all Rights, whether or not previously
vested. For purposes of the above schedule, Participant’s Vesting Date is                                         ,
2004.

 

3. Exercise and Term. The Rights may be
exercised during its term only to the extent vested. Any portion of the Rights
in which the Participant is not vested shall be forfeited and terminate on the
date the Participant ceases to be a Service Provider for any reason. Any
portion of the Rights in which the Participant is vested shall be exercisable
until the earlier of:

 

(a)
twelve (12) months after the date the Participant ceases to be a Service
Provider by reason of death or Disability;

 

 

(b)
thirty (30) days after the date the Participant ceases to be a Service Provider
for any reason other than death or Disability; and

 

(c)
the tenth anniversary of the Grant Date.

 

Any vested Rights not exercised prior to its
Expiration Date will be forfeited and terminate.

 

Vested Rights may be exercised by completing a
Rights Exercise Notice in the form attached hereto as Exhibit A and
returning it to the Chief Financial Officer of the Company prior to its
Expiration Date.

 

4. Payment. At the election of the Company,
the Company may settle the exercise of all or any portion of the Rights either
(i) in a cash lump sum within 30 days of such exercise (ii) by cancellation of
all or a portion of any outstanding indebtedness of the Participant to the
Company or (iii) in five equal annual installments, with any unpaid balance
accruing interest (compounded annually) at the interest rate publicly quoted by
Bank One, N.A. or its successor from time to time as its prime rate.

 

5. Miscellaneous.

 

(a)
Successors. This Agreement shall inure to the benefit of and be binding
upon the parties hereto and their respective heirs, executors, administrators,
successors and permitted assigns.

 

(b)
Stockholder Rights. Participant acknowledges that he/she does not have
any rights as a stockholder of the Company by reason of a grant of the Rights
or settlement of the Rights pursuant to the Plan.

 

(c)
Nontransferrable. The Rights are not transferable other than by will or
the laws of descent and distribution and may be realized, during the lifetime
of the Participant, only by the Participant or by his or her guardian or legal
representative.

 

(d)
Governing Law. The interpretation, performance and enforcement of this
Agreement shall be governed by the laws of the State of Delaware.

 

Executed as of the Grant Date.

 

Reliant Pharmaceuticals, Inc.

 

	
  By:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Its:

  	
   

  	
   

  	
   

  	
  (Participant)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Social
  Security Number)

  	
   

  

 

2

 

EXHIBIT A 

 

RELIANT
PHARMACEUTICALS, INC.

STOCK
APPRECIATION RIGHTS PLAN

RIGHTS
EXERCISE NOTICE 

 

Reliant
Pharmaceuticals, Inc.

110
Allen Road

Liberty
Corner, New Jersey 07938

 

Attention:
Chief Financial Officer

 

Effective
as of today,                                         ,
the undersigned Participant hereby elects to exercise Participant’s vested
Rights with respect to                     
shares of the Company’s Common Stock (the “Rights”) pursuant to the Reliant
Pharmaceuticals, Inc. Stock Appreciation Rights Plan and the Award Agreement
dated                                         .

 

I
acknowledge that payment for the Rights will be made in accordance with the
terms set forth in the Award Agreement, less any legally required withholdings.

 

	
  Submitted
  by:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  PARTICIPANT:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

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"}]]