Document:

EXHIBIT 10.1

 

RELIANT
PHARMACEUTICALS, INC.

2004
EQUITY INCENTIVE PLAN

 

ARTICLE 1

PURPOSE

 

The purpose of the Reliant Pharmaceuticals, Inc. 2004
Equity Incentive Plan (the “Plan”) is to promote the success and enhance
the value of Reliant Pharmaceuticals, Inc. (the “Company”) by offering
to selected Employees, Consultants and Independent Directors of the Company or
any of its Subsidiaries the ability to acquire equity interests in the Company,
thereby helping to attract, retain and reward such persons, and strengthen the
alignment of interests between such persons and the Company.

 

ARTICLE 2

DEFINITIONS AND CONSTRUCTION

 

2.1                                 DEFINITIONS. The following words and phrases shall have the following
meanings:

 

(a)                                  “Award”
means an Option, a Restricted Stock award, a Performance Share award, a
Dividend Equivalents award,  a Stock
Payment award, a Deferred Stock award, or a Performance-Based Award granted to
a Participant pursuant to the Plan.

 

(b)                                 “Award
Agreement” means any written agreement, contract, or other instrument or
document evidencing an Award.

 

(c)                                  “Board”
means the Board of Directors of the Company.

 

(d)                                 “Cause”
means a termination by the Company or any Subsidiary of the Participant’s
relationship with the Company or any Subsidiary due to (i) the commission by
the Participant of an act of fraud against the Company or any Subsidiary or any
affiliate thereof or embezzlement, (ii) a breach of one or more of the
following duties to the Company or any Subsidiary:  (A) the duty of loyalty, (B) the duty not to
take willful actions which would reasonably be viewed by the Company or any
Subsidiary as placing the Participant’s interest in a position adverse to the
interest of the Company or any Subsidiary, (C) the duty not to engage in
self-dealing with respect to the Company’s or any Subsidiary’s assets,
properties or business opportunities, except as approved in writing by the
Board, (D) the duty of honesty or (E) any other fiduciary duty which the
Participant owes to the Company or any Subsidiary, (iii) a conviction of the
Participant (or a plea of nolo contendere
in lieu thereof) for (A) a felony or (B) a crime involving fraud, dishonesty or
moral turpitude, (iv) intentional misconduct with respect to his duties to the
Company or any Subsidiary, including, but not limited to, knowing and
intentional violation by the Participant of written policies of the Company or
any Subsidiary, including policies regarding confidential information and
non-competition, or specific directions of the Board or superior officers of the
Company or any Subsidiary, which policies or directives are neither illegal (or
do not involve illegal conduct) nor do they require the Participant to violate
reasonable business ethical standards, or (v) the failure of the Participant,
after written notice

 

 

from the Company or any
Subsidiary, to render services to the Company or any Subsidiary in accordance
with his employment or other relationship with the Company or any Subsidiary,
which failure is not cured within 10 days of receipt of such notice.

 

(e)                                  “Change
of Control” means and includes each of the following:

 

(1)                                  the
acquisition, directly or indirectly, by any “person” or “group” (as those terms
are defined in Sections 3(a)(9), 13(d) and 14(d) of the Exchange Act and the
rules thereunder) of “beneficial ownership” (as determined pursuant to
Rule 13d-3 under the Exchange Act) of securities entitled to vote
generally in the election of directors (“voting securities”) of the
Company that represent 50%  or more
of the combined voting power of the Company’s then outstanding voting
securities, other than:

 

(A)                        an
acquisition by a trustee or other fiduciary holding securities under any
employee benefit plan (or related trust) sponsored or maintained by the Company
or any person controlled by the Company or by any employee benefit plan (or
related trust) sponsored or maintained by the Company or any person controlled
by the Company, or

 

(B)                          an
acquisition of voting securities by the Company or a corporation owned,
directly or indirectly by the stockholders of the Company in substantially the
same proportions as their ownership of the stock of the Company, or

 

(C)                          an
acquisition of voting securities pursuant to a transaction described in
clause (2) below that would not be a Change of Control under clause (2);

 

Notwithstanding the foregoing, neither of the following events shall
constitute an “acquisition” by any person or group for purposes of this
subsection (e): an acquisition of the Company’s securities by the Company which
causes the Company’s voting securities beneficially owned by a person or group
to represent 50% or more of the combined voting power of the Company’s then
outstanding voting securities; provided,
however, that if a person or group shall become the beneficial owner
of 50% or more of the combined voting power of the Company’s then outstanding
voting securities by reason of share acquisitions by the Company as described
above and shall, after such share acquisitions by the Company, become the
beneficial owner of any additional voting securities of the Company, then such
acquisition shall constitute a Change of Control; or

 

(2)                                  the
consummation by the Company (whether directly involving the Company or
indirectly involving the Company through one or more intermediaries) of
(x) a merger, consolidation, reorganization, or business combination or
(y) a sale or other disposition of all or substantially all of the Company’s
assets or (z) the acquisition of assets or stock of another entity, in
each case other than a transaction:

 

(A)                              which
results in the Company’s voting securities outstanding immediately before the
transaction continuing to represent (either by remaining outstanding or by
being converted into voting securities of the Company or the person that, as a
result of the transaction, controls, directly or indirectly, the Company or
owns, directly or indirectly, all or substantially all of the Company’s assets
or otherwise succeeds to the business of the Company (the Company or such
person, the “Successor Entity”)) directly or indirectly, at

 

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least a majority
of the combined voting power of the Successor Entity’s outstanding voting
securities immediately after the transaction, and

 

(B)                                after
which no person or group beneficially owns voting securities representing 50%
or more of the combined voting power of the Successor Entity; provided, however, that no person or group
shall be treated for purposes of this clause (B) as beneficially owning
50% or more of combined voting power of the Successor Entity solely as a result
of the voting power held in the Company prior to the consummation of the
transaction; or

 

(3)                                  the
Company’s stockholders approve a liquidation or dissolution of the Company
other than in connection with a corporate restructuring transaction.

 

The Committee shall have full and final authority, which shall be
exercised in its discretion, to determine conclusively whether a Change of
Control of the Company has occurred pursuant to the above definition, and the
date of the occurrence of such Change of Control and any incidental matters
relating thereto.

 

(f)                                    “Code”
means the Internal Revenue Code of 1986, as amended.

 

(g)                                 “Committee”
means the committee of the Board described in Article 11.

 

(h)                                 “Consultant”
means any consultant or adviser if: (i) the consultant or adviser renders
bona fide services to the Company or any 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.

 

(i)                                     “Covered
Employee” means an Employee who is, or could be, a “covered employee”
within the meaning of Section 162(m) of the Code.

 

(j)                                     “Deferred
Stock” means a right to receive a specified number of shares of Stock
during specified time periods pursuant to Article 7.

 

(k)                                  “Disability”  means, for purposes of this Plan, that the Participant
qualifies or would qualify if he were a participant to receive long-term
disability payments under the Company’s long-term disability insurance program,
as it may be amended from time to time.

 

(l)                                     “Dividend
Equivalents” means a right granted to a Participant pursuant to Article 7
to receive the equivalent value (in cash or Stock) of dividends paid on Stock.

 

(m)                               “Employee”
means any officer or other employee (as defined in accordance with Section
3401(c) of the Code) of the Company or any Subsidiary.

 

(n)                                 “Exchange
Act” means the Securities Exchange Act of 1934, as amended.

 

(o)                                 “Fair
Market Value” means, as of any given date, the fair market value of a share
of Stock on a particular date determined as follows:

 

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(1)                                  If
the Common Stock is listed on any established stock exchange or a national
market system, including, without limitation, the Nasdaq National Market or The
Nasdaq SmallCap Market of The Nasdaq Stock Market, its Fair Market Value shall
be the closing sales price for a share of such stock (or the closing bid, if no
sales were reported) as quoted on such exchange or system for the last market
trading day prior to the time of determination, as reported in The Wall Street Journal or such other
source as the Committee deems reliable;

 

(2)                                  If
the Common Stock is regularly quoted by a recognized securities dealer but
selling prices are not reported, its Fair Market Value shall be the mean
between the high bid and low asked prices for a share of the Common Stock on
the last market trading day prior to the day of determination; or

 

(3)                                  In
the absence of an established market for the Common Stock, the Fair Market
Value thereof shall be determined in good faith by the Committee which
determination shall be final and binding.

 

(p)                                 “Incentive
Stock Option” means an Option that is intended to meet the requirements of
Section 422 of the Code or any successor provision thereto.

 

(q)                                 “Independent
Director” means a Director who is not an Employee of the Company.

 

(r)                                    “Non-Employee
Director” means a member of the Board who qualifies as a “Non-Employee
Director” as defined in Rule 16b-3(b)(3) of the Exchange Act, or any successor
definition adopted by the Board.

 

(s)                                  “Non-Qualified
Stock Option” means an Option that is not intended to be an Incentive Stock
Option.

 

(t)                                    “Option”
means a right granted to a Participant pursuant to Article 5 of the Plan to
purchase a specified number of shares of Stock at a specified price during
specified time periods. An Option may be either an Incentive Stock Option or a
Non-Qualified Stock Option.

 

(u)                                 “Participant”
means a person who, as a Independent 
Director, Consultant or Employee, has been granted an Award pursuant to
the Plan.

 

(v)                                 “Performance-Based
Award” means an Award granted to selected Covered Employees pursuant to
Articles 6 and 7, but which is subject to the terms and conditions set forth in
Article 8. All Performance-Based Awards are intended to qualify as Qualified
Performance-Based Compensation.

 

(w)                               “Performance
Criteria” means the criteria that the Committee selects for purposes of
establishing the Performance Goal or Performance Goals for a Participant for a
Performance Period. The Performance Criteria that will be used to establish
Performance Goals are limited to the following: 
net earnings (either before or after interest, taxes, depreciation and
amortization), sales or revenue, operating earnings, operating cash flow,
return on net assets, return on stockholders’ equity, return on assets, return
on capital, stockholder returns, gross or

 

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net profit margin,
earnings per share, price per share of Stock, market share, product
acquisitions, product development, achievement of special project objectives,
any of which may be measured either in absolute terms or as compared to any
incremental increase or as compared to results of a peer group. The Committee
shall, within the time prescribed by Section 162(m) of the Code, define in an
objective fashion the manner of calculating the Performance Criteria it selects
to use for such Performance Period for such Participant.

 

(x)                                   “Performance
Goals” means, for a Performance Period, the goals established in writing by
the Committee for the Performance Period based upon the Performance Criteria. Depending
on the Performance Criteria used to establish such Performance Goals, the
Performance Goals may be expressed in terms of overall Company performance or
the performance of a division, business unit, or an individual. The Committee,
in its discretion, may, within the time prescribed by Section 162(m) of the
Code, adjust or modify the calculation of Performance Goals for such
Performance Period in order to prevent the dilution or enlargement of the
rights of Participants (i) in the event of, or in anticipation of, any unusual
or extraordinary corporate item, transaction, event, or development, or (ii) in
recognition of, or in anticipation of, any other unusual or nonrecurring events
affecting the Company, or the financial statements of the Company, or in response
to, or in anticipation of, changes in applicable laws, regulations, accounting
principles, or business conditions.

 

(y)                                 “Performance
Period” means the one or more periods of time, which may be of varying and
overlapping durations, as the Committee may select, over which the attainment
of one or more Performance Goals will be measured for the purpose of
determining a Participant’s right to, and the payment of, a Performance-Based
Award.

 

(z)                                   “Performance
Share” means a right granted to a Participant pursuant to Article 7, to
receive cash, Stock, or other Awards, the payment of which is contingent upon
achieving certain performance goals established by the Committee.

 

(aa)                            “Plan”
means this Reliant Pharmaceuticals, Inc. 2004 Equity Incentive Plan, as it may
be amended from time to time.

 

(bb)                          “Public
Trading Date” means the first date upon which the 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.

 

(cc)                            “Qualified
Performance-Based Compensation” means any compensation that is intended to
qualify as “qualified performance-based compensation” as described in
Section 162(m)(4)(C) of the Code.

 

(dd)                          “Restricted
Stock” means Stock awarded to a Participant pursuant to Article 6 that is
subject to certain restrictions and to risk of forfeiture.

 

(ee)                            “Stock”
means the common stock of the Company, par value $0.01 per share, and such
other securities of the Company that may be substituted for Stock pursuant to
Article 10.

 

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(ff)                                “Stock
Payment” means (a) a payment in the form of shares of Stock, or (b) an
option or other right to purchase shares of Stock, as part of any bonus,
deferred compensation or other arrangement, made in lieu of all or any portion
of the compensation, granted pursuant to Article 7.

 

(gg)                          “Subsidiary”
means any corporation or other entity of which a majority of the outstanding
voting stock or voting power is beneficially owned directly or indirectly by
the Company.

 

ARTICLE 3

SHARES SUBJECT TO THE PLAN

 

3.1                                 NUMBER OF SHARES.

 

(a)                                  Subject
to Article 11, the aggregate number of shares of Stock which may be issued or
transferred pursuant to Awards under the Plan shall be the sum of (i) 1,343,600
shares of Stock; plus (ii) any shares of Stock which would again become
available for issuance under the Company’s 
Equity Incentive Plan (formerly known as the Reliant Pharmaceuticals, LLC
Equity Incentive Plan) upon forfeiture of options or restricted stock
previously granted thereunder. The payment of Dividend Equivalents in
conjunction with any outstanding Awards shall not be counted against the shares
available for issuance under the Plan.

 

(b)                                 To
the extent that an Award terminates, expires, or lapses for any reason, any
shares of Stock subject to the Award shall again be available for the grant of
an Award pursuant to the Plan. Additionally, any shares of Stock tendered or
withheld to satisfy the grant or exercise price or tax withholding obligation
pursuant to any Award shall again be available for the grant of an Award
pursuant to the Plan. To the extent permitted by applicable law or any exchange
rule, shares of Stock issued in assumption of, or in substitution for, any
outstanding awards of any entity acquired in any form of combination by the
Company or any Subsidiary shall not be counted against shares of Stock
available for grant pursuant to this Plan.

 

3.2                                 STOCK DISTRIBUTED. Any Stock distributed pursuant
to an Award may consist, in whole or in part, of authorized and unissued Stock,
treasury Stock or Stock purchased on the open market.

 

3.3                                 LIMITATION ON NUMBER OF SHARES SUBJECT TO AWARDS. Notwithstanding any provision in
the Plan to the contrary, and subject to Article 11 following the Public
Trading Date and after the earliest date pursuant to which Section 162(m) of
the Code and the rules and regulations promulgated thereunder become applicable
to the Plan, the maximum number of shares of Stock with respect to one or more
Awards that are intended to be Qualified Performance-Based Compensation that
may be granted to any one Participant shall not exceed 1,000,000 shares of
Stock in any twelve-month period.

 

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ARTICLE 4

ELIGIBILITY AND PARTICIPATION

 

4.1                                 ELIGIBILITY.

 

(a)                                  GENERAL.
Persons eligible to participate in this Plan include Employees, Consultants and
Independent Directors, as determined by the Committee.

 

(b)                                 FOREIGN
PARTICIPANTS. In order to assure the viability of Awards granted to
Participants employed in foreign countries, the Committee may provide for such
special terms as it may consider necessary or appropriate to accommodate
differences in local law, tax policy, or custom. Moreover, the Committee may
approve such supplements to, or amendments, restatements, or alternative
versions of, the Plan as it may consider necessary or appropriate for such
purposes without thereby affecting the terms of the Plan as in effect for any
other purpose; provided, however,
that no such supplements, amendments, restatements, or alternative versions
shall increase the share limitations contained in Sections 3.1 and 3.3 of the
Plan.

 

4.2                                 ACTUAL PARTICIPATION. Subject to the provisions of the
Plan, the Committee may, from time to time, select from among all eligible
individuals, those to whom Awards shall be granted and shall determine the
nature and amount of each Award. No individual shall have any right to be
granted an Award pursuant to this Plan.

 

ARTICLE 5

STOCK OPTIONS

 

5.1                                 GENERAL. The Committee is authorized to grant Options to Participants
on the following terms and conditions:

 

(a)                                  EXERCISE
PRICE. The exercise price per share of Stock subject to an Option shall be
determined by the Committee and set forth in the Award Agreement; provided that the exercise price for any
Option shall not be less than 100% of Fair Market Value on the date of grant.

 

(b)                                 TIME
AND CONDITIONS OF EXERCISE. The Committee shall determine the time or times at
which an Option may be exercised in whole or in part, provided that the term of any Option
granted under the Plan shall not exceed ten years. The Committee shall also
determine the performance or other conditions, if any, that must be satisfied
before all or part of an Option may be exercised. Unless otherwise provided in
an Award Agreement, an Option will lapse immediately if a Participant’s
employment is terminated for Cause.

 

(c)                                  PAYMENT.
The Committee shall determine the methods by which the exercise price of an
Option may be paid, the form of payment, including, without limitation, cash,
promissory note bearing interest at no less than such rate as shall then
preclude the imputation of interest under the Code, shares of Stock held for
longer than six months having a Fair Market Value on the date of delivery equal
to the aggregate exercise price of the Option or exercised portion thereof, or
other property acceptable to the Committee (including through the delivery of a
notice that the Participant has placed a market sell order with a broker with
respect

 

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to shares of Stock then
issuable upon exercise of the Option, and that the broker has been directed to
pay a sufficient portion of the net proceeds of the sale to the Company in
satisfaction of the Option exercise price, provided
that payment of such proceeds is then made to the Company upon settlement of
such sale), and the methods by which shares of Stock shall be delivered or
deemed to be delivered to Participants. Notwithstanding any other provision of
the Plan to the contrary, no Participant who is a member of the Board or an “executive
officer” of the Company within the meaning of Section 13(k) of the Exchange Act
shall be permitted to pay the exercise price of an Option in any method which
would violate Section 13(k) of the Exchange Act.

 

(d)                                 EVIDENCE
OF GRANT. All Options shall be evidenced by a written Award Agreement between
the Company and the Participant. The Award Agreement shall include such additional
provisions as may be specified by the Committee.

 

5.2                                 INCENTIVE STOCK OPTIONS. Incentive Stock Options shall be
granted only to Employees and the terms of any Incentive Stock Options granted
pursuant to the Plan must comply with the following additional provisions of
this Section 5.2:

 

(a)                                  EXERCISE
PRICE. The exercise price per share of Stock shall be set by the Committee, provided that the exercise price for any
Incentive Stock Option shall not be less than 100% of the Fair Market Value on
the date of grant.

 

(b)                                 EXPIRATION
OF OPTION. An Incentive Stock Option may not be exercised to any extent by
anyone after the first to occur of the following events::

 

(1)                                  Ten
years from the date it is granted, unless an earlier time is set in the Award
Agreement.

 

(2)                                  The
Participant’s termination of employment for Cause or termination of employment
or service for any other reason other than the Participant’s death or
Disability, unless otherwise provided in the Award Agreement.

 

(3)                                  One
year after the date of the Participant’s termination of employment or service
on account of Disability or death. Upon the Participant’s Disability or death,
any Incentive Stock Options exercisable at the Participant’s Disability or
death may be exercised by the Participant’s legal representative or
representatives, by the person or persons entitled to do so pursuant to the
Participant’s last will and testament, or, if the Participant fails to make
testamentary disposition of such Incentive Stock Option or dies intestate, by
the person or persons entitled to receive the Incentive Stock Option pursuant
to the applicable laws of descent and distribution.

 

(c)                                  INDIVIDUAL
DOLLAR LIMITATION. The aggregate Fair Market Value (determined as of the time
the Option is granted) of all shares of Stock with respect to which Incentive
Stock Options are first exercisable by a Participant in any calendar year may
not exceed $100,000.00 or such other limitation as imposed by Section 422(d) of
the Code, or any successor provision. To the extent that Incentive Stock
Options are first exercisable by a Participant in excess of such limitation,
the excess shall be considered Non-Qualified Stock Options.

 

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(d)                                 TEN
PERCENT OWNERS. An Incentive Stock Option shall be granted to any individual
who, at the date of grant, owns stock possessing more than ten percent of the
total combined voting power of all classes of Stock of the Company only if such
Option is granted at a price that is not less than 110% of Fair Market Value on
the date of grant and the Option is exercisable for no more than five years
from the date of grant.

 

(e)                                  TRANSFER
RESTRICTION. The Participant shall give the Company prompt notice of any
disposition of shares of Stock acquired by exercise of an Incentive Stock
Option within (2) two years from the date of grant of such Incentive Stock
Option, or (1) one year after the transfer of such shares of Stock to the
Participant.

 

(f)                                    EXPIRATION
OF INCENTIVE STOCK OPTIONS. No Award of an Incentive Stock Option may be made
pursuant to this Plan after the tenth anniversary of the Effective Date.

 

(g)                                 RIGHT
TO EXERCISE. During a Participant’s lifetime, an Incentive Stock Option may be
exercised only by the Participant.

 

ARTICLE 6

RESTRICTED STOCK AWARDS

 

6.1                                 GRANT OF RESTRICTED STOCK. The Committee is authorized to
make Awards of Restricted Stock to any Participant selected by the Committee in
such amounts and subject to such terms and conditions as determined by the
Committee. All Awards of Restricted Stock shall be evidenced by a written
Restricted Stock Award Agreement.

 

6.2                                 ISSUANCE AND RESTRICTIONS. Restricted Stock shall be
subject to such restrictions on transferability and other restrictions as the
Committee may impose (including, without limitation, limitations on the right
to vote Restricted Stock or the right to receive dividends on the Restricted
Stock). These restrictions may lapse separately or in combination at such
times, pursuant to such circumstances, in such installments, or otherwise, as the
Committee determines at the time of the grant of the Award or thereafter.

 

6.3                                 FORFEITURE. Except as otherwise determined by the Committee at the time
of the grant of the Award or thereafter, upon termination of employment or
service during the applicable restriction period, Restricted Stock that is at
that time subject to restrictions shall be forfeited; provided, however, that the Committee may
provide in any Restricted Stock Award Agreement that restrictions or forfeiture
conditions relating to Restricted Stock will be waived in whole or in part in
the event of terminations resulting from specified causes, and the Committee
may in other cases waive in whole or in part restrictions or forfeiture
conditions relating to Restricted Stock.

 

6.4                                 CERTIFICATES FOR RESTRICTED STOCK. Restricted Stock granted
pursuant to the Plan may be evidenced in such manner as the Committee shall
determine. If certificates representing shares of Restricted Stock are
registered in the name of the Participant, certificates must bear an
appropriate legend referring to the terms, conditions, and restrictions
applicable to such Restricted Stock, and the Company may, at its discretion,
retain physical possession of the certificate until such time as all applicable
restrictions lapse.

 

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ARTICLE 7

OTHER TYPES OF AWARDS

 

7.1                                 PERFORMANCE SHARE AWARDS. Any
Participant selected by the Committee may be granted one or more Performance
Share awards which may be denominated in a number of shares of Stock or in a
dollar value of shares of Stock and which may be linked to any one or more of
the Performance Criteria or other specific performance criteria determined
appropriate by the Committee, in each case on a specified date or dates or over
any period or periods determined by the Committee. In making such
determinations, the Committee shall consider (among such other factors as it
deems relevant in light of the specific type of award) the contributions,
responsibilities and other compensation of the particular Participant.

 

7.2                                 DIVIDEND EQUIVALENTS.

 

(a)                                  Any
Participant selected by the Committee may be granted Dividend Equivalents based
on the dividends declared on the shares of Stock that are subject to any Award,
to be credited as of dividend payment dates, during the period between the date
the Award is granted and the date the Award is exercised, vests or expires, as
determined by the Committee. Such Dividend Equivalents shall be converted to
cash or additional shares of Stock by such formula and at such time and subject
to such limitations as may be determined by the Committee.

 

(b)                                 Dividend
Equivalents granted with respect to Options that are intended to be Qualified
Performance-Based Compensation shall be payable, with respect to pre-exercise
periods, regardless of whether such Option is subsequently exercised.

 

7.3                                 STOCK PAYMENTS.

 

Any Participant
selected by the Committee may receive Stock Payments in the manner determined
from time to time by the Committee. The number of shares shall be determined by
the Committee and may be based upon the Performance Criteria or other specific
performance criteria determined appropriate by the Committee, determined on the
date such Stock Payment is made or on any date thereafter.

 

7.4                                 DEFERRED STOCK. Any Participant
selected by the Committee may be granted an award of Deferred Stock in the
manner determined from time to time by the Committee. The number of shares of
Deferred Stock shall be determined by the Committee and may be linked to the
Performance Criteria or other specific performance criteria determined to be
appropriate by the Committee, in each case on a specified date or dates or over
any period or periods determined by the Committee. Stock underlying a Deferred
Stock award will not be issued until the Deferred Stock award has vested,
pursuant to a vesting schedule or performance criteria set by the Committee. Unless
otherwise provided by the Committee, a Participant awarded Deferred Stock shall
have no rights as a Company stockholder with respect to such Deferred Stock
until such time as the Deferred Stock Award has vested and the Stock underlying
the Deferred Stock Award has been issued.

 

7.5                                 TERM. The term of any Award of  Performance Shares, Dividend Equivalents,
Stock Payments or Deferred Stock shall be set by the Committee in its
discretion.

 

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7.6                                 EXERCISE OR PURCHASE PRICE. The
Committee may establish the exercise or purchase price of any Award of
Performance Shares, Deferred Stock or Stock Payments; provided, however, that such price shall
not be less than the par value of a share of Stock, unless otherwise permitted
by applicable state law.

 

7.7                                 EXERCISE UPON TERMINATION
OF EMPLOYMENT OR SERVICE. An
Award of Performance Shares, Dividend Equivalents, Deferred Stock and Stock
Payments shall only be  exercisable or
payable while the Participant is an Employee, Consultant or a member of the
Board, as applicable; provided,
however, that the Committee in its sole and absolute discretion may
provide that an Award of Performance Shares, Dividend Equivalents, Stock
Payments or Deferred Stock may be exercised or paid subsequent to a termination
of employment or service, as applicable, or following a Change of Control of
the Company, or because of the Participant’s retirement, death or disability,
or otherwise; provided, however,
that any such provision with respect to Performance Shares shall be subject to
the requirements of Section 162(m) of the Code that apply to Qualified
Performance-Based Compensation.

 

7.8                                 FORM OF PAYMENT. Payments with respect
to any Awards granted under this Article 7 shall be made in cash, in Stock or a
combination of both, as determined by the Committee.

 

7.9                                 AWARD AGREEMENT. All Awards under this
Article 7 shall be subject to such additional terms and conditions as
determined by the Committee and shall be evidenced by a written Award
Agreement.

 

ARTICLE 8

PERFORMANCE-BASED AWARDS

 

8.1                                 PURPOSE. The purpose of this Article 8 is to provide the Committee
the ability to qualify Awards other than Options and that are granted pursuant
to Articles 6 and 7 as Qualified Performance-Based Compensation to the extent
that Section 162(m) of the Code is applicable to the Company. If the Committee,
in its discretion, decides to grant a Performance-Based Award to a Covered
Employee, the provisions of this Article 8 shall control over any contrary
provision contained in Articles 6 or 7; provided,
however, that the Committee may in its discretion grant Awards to
Covered Employees that are based on Performance Criteria or Performance Goals
but that do not satisfy the requirements of this Article 8.

 

8.2                                 APPLICABILITY. This Article 8 shall apply only to those Covered Employees
selected by the Committee to receive Performance-Based Awards. The designation
of a Covered Employee as a Participant for a Performance Period shall not in
any manner entitle the Participant to receive an Award for the period. Moreover,
designation of a Covered Employee as a Participant for a particular Performance
Period shall not require designation of such Covered Employee as a Participant
in any subsequent Performance Period and designation of one Covered Employee as
a Participant shall not require designation of any other Covered Employees as a
Participant in such period or in any other period.

 

8.3                                 PROCEDURES WITH RESPECT TO PERFORMANCE-BASED
AWARDS. To the
extent necessary to comply with the Qualified Performance-Based

 

11

 

Compensation requirements
of Section 162(m)(4)(C) of the Code, with respect to any Award granted under
Articles 6 and 7 which may be granted to one or more Covered Employees, no
later than ninety (90) days following the commencement of any fiscal year in
question or any other designated fiscal period or period of service (or such
other time as may be required or permitted by Section 162(m) of the Code), the
Committee shall, in writing, (i) designate one or more Covered Employees, (ii)
select the Performance Criteria applicable to the Performance Period, (iii) establish
the Performance Goals, and amounts of such Awards, as applicable, which may be
earned for such Performance Period, and (iv) specify the relationship between
Performance Criteria and the Performance Goals and the amounts of such Awards,
as applicable, to be earned by each Covered Employee for such Performance
Period. Following the completion of each Performance Period, the Committee
shall certify in writing whether the applicable Performance Goals have been
achieved for such Performance Period. In determining the amount earned by a
Covered Employee, the Committee shall have the right to reduce or eliminate
(but not to increase) the amount payable at a given level of performance to
take into account additional factors that the Committee may deem relevant to
the assessment of individual or corporate performance for the Performance
Period.

 

8.4                                 PAYMENT OF PERFORMANCE-BASED AWARDS. Unless otherwise provided in the
applicable Award Agreement, a Participant must be employed by the Company or a
Subsidiary on the day a Performance-Based Award for such Performance Period is
paid to the Participant. Furthermore, a Participant shall be eligible to
receive payment pursuant to a Performance-Based Award for a Performance Period
only if the Performance Goals for such period are achieved. In determining the
amount earned under a Performance-Based Award, the Committee may reduce or
eliminate the amount of the Performance-Based Award earned for the Performance
Period, if in its sole and absolute discretion, such reduction or elimination
is appropriate.

 

8.5                                 ADDITIONAL LIMITATIONS. Notwithstanding
any other provision of the Plan, any Award which is granted to a Covered
Employee and is intended to constitute Qualified Performance-Based Compensation
shall be subject to any additional limitations set forth in Section 162(m) of
the Code (including any amendment to Section 162(m) of the Code) or any
regulations or rulings issued thereunder that are requirements for
qualification as Qualified Performance-Based Compensation as described in
Section 162(m)(4)(C) of the Code, and the Plan shall be deemed amended to the
extent necessary to conform to such requirements.

 

ARTICLE 9

PROVISIONS APPLICABLE TO AWARDS

 

9.1                                 STAND-ALONE AND TANDEM AWARDS. Awards granted pursuant to the
Plan may, in the discretion of the Committee, be granted either alone, in
addition to, or in tandem with, any other Award granted pursuant to the Plan.
Awards granted in addition to or in tandem with other Awards may be granted
either at the same time as or at a different time from the grant of such other
Awards.

 

9.2                                 AWARD AGREEMENT. Awards under the Plan shall be evidenced by Award Agreements
that set forth the terms, conditions and limitations for each Award which may
include the term of an Award, the provisions applicable in the event the
Participant’s

 

12

 

employment or service
terminates, and the Company’s authority to unilaterally or bilaterally amend,
modify, suspend, cancel or rescind an Award. Prior to the Public Trading Date,
the Committee in its discretion may provide that the Company may repurchase
Stock acquired under any Award upon a Participant’s termination of employment,
or service as a Consultant or as a member of the Board; provided,
however that any such repurchase right shall be set forth in the
applicable Award Agreement or in another agreement referred to in such
agreement.

 

9.3                                 EFFECT OF TERMINATION FOR CAUSE. Unless expressly provided
otherwise provided in an Award Agreement, a Participant’s Awards and all rights
thereunder shall be forfeited immediately if a Participant’s employment is
terminated for Cause

 

9.4                                 LIMITS ON TRANSFER. No right or interest of a
Participant in any Award may be pledged, encumbered, or hypothecated to or in
favor of any party other than the Company or a Subsidiary, or shall be subject
to any lien, obligation, or liability of such Participant to any other party
other than the Company or a Subsidiary. Except as otherwise provided by the
Committee, no Award shall be assigned, transferred, or otherwise disposed of by
a Participant other than by will or the laws of descent and distribution. The
Committee by express provision in the Award or an amendment thereto may permit
an Award (other than an Incentive Stock Option) to be transferred to, exercised
by and paid to certain persons or entities related to the Participant,
including but not limited to members of the Participant’s family, charitable
institutions, or trusts or other entities whose beneficiaries or beneficial
owners are members of the Participant’s family and/or charitable institutions,
or to such other persons or entities as may be expressly approved by the
Committee, pursuant to such conditions and procedures as the Committee may
establish. Any permitted transfer shall be subject to the condition that the
Committee receive evidence satisfactory to it that the transfer is being made
for estate and/or tax planning purposes (or to a “blind trust” in connection
with the Participant’s termination of employment or service with the Company or
a Subsidiary to assume a position with a governmental, charitable, educational
or similar non-profit institution) and on a basis consistent with the Company’s
lawful issue of securities.

 

9.5                                 BENEFICIARIES. Notwithstanding Section 9.4, a Participant may, in the
manner determined by the Committee, designate a beneficiary to exercise the
rights of the Participant and to receive any distribution with respect to any
Award upon the Participant’s death. A beneficiary, legal guardian, legal representative,
or other person claiming any rights pursuant to the Plan is subject to all
terms and conditions of the Plan and any Award Agreement applicable to the
Participant, except to the extent the Plan and Award Agreement otherwise
provide, and to any additional restrictions deemed necessary or appropriate by
the Committee. If the Participant is married and resides in a community
property state, a designation of a person other than the Participant’s spouse
as his beneficiary with respect to more than 50% of the Participant’s interest
in the Award shall not be effective without the prior written consent of the
Participant’s spouse. If no beneficiary has been designated or survives the
Participant, payment shall be made to the person entitled thereto pursuant to
the Participant’s will or the laws of descent and distribution. Subject to the
foregoing, a beneficiary designation may be changed or revoked by a Participant
at any time provided the change or revocation is filed with the Committee.

 

13

 

9.6                                 STOCK CERTIFICATES. Notwithstanding anything herein
to the contrary, the Company shall not be required to issue or deliver any
certificates evidencing shares of Stock pursuant to the exercise of any Award,
unless and until the Board has determined, with advice of counsel, that the
issuance and delivery of such certificates is in compliance with all applicable
laws, regulations of governmental authorities and, if applicable, the
requirements of any exchange on which the shares of Stock are listed or traded.
All Stock certificates delivered pursuant to the Plan are subject to any
stop-transfer orders and other restrictions as the Committee deems necessary or
advisable to comply with federal, state, or foreign jurisdiction, securities or
other laws, rules and regulations and the rules of any national securities
exchange or automated quotation system on which the Stock is listed, quoted, or
traded. The Committee may place legends on any Stock certificate to reference
restrictions applicable to the Stock. In addition to the terms and conditions
provided herein, the Board may require that a Participant make such reasonable
covenants, agreements, and representations as the Board, in its discretion,
deems advisable in order to comply with any such laws, regulations, or
requirements. The Committee shall have the right to require any Participant to comply with any timing or
other restrictions with respect to the settlement or exercise of any Award,
including a window-period limitation, as may be imposed in the discretion of
the Committee.

 

ARTICLE 10

CHANGES IN CAPITAL STRUCTURE

 

10.1                           ADJUSTMENTS. In the event of any stock dividend, stock split, combination
or exchange of shares, merger, consolidation, spin-off, recapitalization or other
distribution (other than normal cash dividends) of Company assets to
stockholders, or any other change affecting the shares of Stock or the share
price of the Stock, the Committee shall make such proportionate adjustments, if
any, as the Committee in its discretion may deem appropriate to reflect such
change with respect to (i) the aggregate number and type of shares that may be
issued under the Plan (including, but not limited to, adjustments of the
limitations in Sections 3.1 and 3.3); (ii) the terms and conditions of any
outstanding Awards (including, without limitation, any applicable performance
targets or criteria with respect thereto); and (iii) the grant or exercise
price per share for any outstanding Awards under the Plan. Any adjustment affecting
an Award intended as Qualified Performance-Based Compensation shall be made
consistent with the requirements of Section 162(m) of the Code.

 

10.2                           ACCELERATION UPON A CHANGE OF CONTROL. If a Change of Control occurs
and a Participant’s Awards are not converted, assumed, or replaced by a
successor, the Committee in its sole discretion may provide that all Awards
shall become fully exercisable and all forfeiture restrictions on such Awards
shall lapse. To the extent that this provision causes Incentive Stock Options
to exceed the dollar limitation set forth in Section 5.2(c), the excess Options
shall be deemed to be Non-Qualified Stock Options. Upon, or in anticipation of,
a Change in Control, the Committee may cause any and all Awards outstanding
hereunder to terminate at a specific time in the future and shall give each
Participant the right to exercise such Awards during a period of time as the
Committee, in its sole and absolute discretion, shall determine.

 

10.3                           OUTSTANDING AWARDS – CERTAIN MERGERS. Subject to any required action
by the stockholders of the Company, in the event that the Company shall be the

 

14

 

surviving corporation in
any merger or consolidation (except a merger or consolidation as a result of
which the holders of shares of Stock receive securities of another
corporation), each Award outstanding on the date of such merger or
consolidation shall pertain to and apply to the securities that a holder of the
number of shares of Stock subject to such Award would have received in such
merger or consolidation.

 

10.4                           OUTSTANDING AWARDS – OTHER CHANGES. In the event of any other change
in the capitalization of the Company or corporate change other than those
specifically referred to in this Article 10, the Committee may, in its absolute
discretion, make such adjustments in the number and class of shares subject to
Awards outstanding on the date on which such change occurs and in the per share
grant or exercise price of each Award as the Committee may consider appropriate
to prevent dilution or enlargement of rights.

 

10.5                           NO OTHER RIGHTS. Except as expressly provided in the Plan, no Participant
shall have any rights by reason of any subdivision or consolidation of shares
of stock of any class, the payment of any dividend, any increase or decrease in
the number of shares of stock of any class or any dissolution, liquidation,
merger, or consolidation of the Company or any other corporation. Except as
expressly provided in the Plan or pursuant to action of the Committee under the
Plan, no issuance by the Company of shares of stock of any class, or securities
convertible into shares of stock of any class, shall affect, and no adjustment
by reason thereof shall be made with respect to, the number of shares of Stock
subject to an Award or the grant or exercise price of any Award.

 

ARTICLE 11

ADMINISTRATION

 

11.1                           COMMITTEE. The Plan shall be administered by the Compensation Committee
of the Board. After the Public Trading Date the Committee shall consist of at least
two individuals, each of whom qualifies as (i) a Non-Employee Director, and
(ii) an “outside director” pursuant to Code Section 162(m) and the regulations
issued thereunder. Reference to the Committee shall refer to the Board if the
Compensation Committee ceases to exist and the Board does not appoint a
successor Committee.

 

11.2                           ACTION BY THE COMMITTEE. A majority of the Committee
shall constitute a quorum. The acts of a majority of the members present at any
meeting at which a quorum is present, and acts approved in writing by a
majority of the Committee in lieu of a meeting, shall be deemed the acts of the
Committee. Each member of the Committee is entitled to, in good faith, rely or
act upon any report or other information furnished to that member by any
officer or other employee of the Company or any Subsidiary, the Company’s
independent certified public accountants, or any executive compensation
consultant or other professional retained by the Company to assist in the
administration of the Plan.

 

11.3                           AUTHORITY OF COMMITTEE. Subject to any specific
designation in the Plan, the Committee has the exclusive power, authority and
discretion to:

 

(a)                                  Designate
Participants to receive Awards;

 

(b)                                 Determine
the type or types of Awards to be granted to each Participant;

 

15

 

(c)                                  Determine
the number of Awards to be granted and the number of shares of Stock to which
an Award will relate;

 

(d)                                 Determine
the terms and conditions of any Award granted pursuant to the Plan, including,
but not limited to, the exercise price, grant price, or purchase price, any
reload provision, any restrictions or limitations on the Award, any schedule
for lapse of forfeiture restrictions or restrictions on the exercisability of
an Award, and accelerations or waivers thereof, any provisions related to
non-competition and recapture of gain on an Award, based in each case on such
considerations as the Committee in its sole discretion determines; provided, however, that the Committee shall
not have the authority to accelerate the vesting or waive the forfeiture of any
Performance-Based Awards;

 

(e)                                  Determine
whether, to what extent, and pursuant to what circumstances an Award may be
settled in, or the exercise price of an Award may be paid in, cash, Stock,
other Awards, or other property, or an Award may be canceled, forfeited, or
surrendered;

 

(f)                                    Prescribe
the form of each Award Agreement, which need not be identical for each
Participant;

 

(g)                                 Decide
all other matters that must be determined in connection with an Award;

 

(h)                                 Establish,
adopt, or revise any rules and regulations as it may deem necessary or
advisable to administer the Plan;

 

(i)                                     Interpret
the terms of, and any matter arising pursuant to, the Plan or any Award
Agreement; and

 

(j)                                     Make
all other decisions and determinations that may be required pursuant to the
Plan or as the Committee deems necessary or advisable to administer the Plan.

 

11.4                           DECISIONS BINDING. The Committee’s interpretation
of the Plan, any Awards granted pursuant to the Plan, any Award Agreement and
all decisions and determinations by the Committee with respect to the Plan are
final, binding, and conclusive on all parties.

 

ARTICLE 12

EFFECTIVE AND EXPIRATION DATE

 

12.1                           EFFECTIVE DATE. The Plan is effective as of the date the Plan is approved by
the Company’s stockholders (the “Effective Date”). The Plan will be
deemed to be approved by the stockholders if it receives the affirmative vote
of the holders of a majority of the shares of stock of the Company present or
represented and entitled to vote at a meeting duly held in accordance with the
applicable provisions of the Company’s Bylaws.

 

12.2                           EXPIRATION DATE. The Plan will expire on, and no Award may be granted
pursuant to the Plan after, the tenth anniversary of the Effective Date. Any
Awards that are outstanding on the tenth anniversary of the Effective Date
shall remain in force according to the terms of the Plan and the applicable
Award Agreement.

 

16

 

ARTICLE 13

AMENDMENT, MODIFICATION, AND TERMINATION

 

13.1                           AMENDMENT, MODIFICATION, AND TERMINATION. With the approval of the Board,
at any time and from time to time, the Committee may terminate, amend or modify
the Plan; provided, however, that
(i) 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 (ii) shareholder approval is required for any amendment to the
Plan that (A) increases the number of shares available under the Plan (other
than any adjustment as provided by Article 11), (B) permits the Committee to
grant Options with an exercise price that is below Fair Market Value on the date
of grant, or (C) permits the Committee to extend the exercise period for an
Option beyond ten years from the date of grant.

 

13.2                           AWARDS PREVIOUSLY GRANTED. No termination, amendment, or
modification of the Plan shall adversely affect in any material way any Award
previously granted pursuant to the Plan without the prior written consent of
the Participant.

 

ARTICLE 14

GENERAL PROVISIONS

 

14.1                           NO RIGHTS TO AWARDS. No Participant, employee, or
other person shall have any claim to be granted any Award pursuant to the Plan,
and neither the Company nor the Committee is obligated to treat Participants,
employees, and other persons uniformly.

 

14.2                           NO STOCKHOLDERS RIGHTS. No Award gives the Participant
any of the rights of a stockholder of the Company unless and until shares of
Stock are in fact issued to such person in connection with such Award.

 

14.3                           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 FICA obligation) required by law to be
withheld with respect to any taxable event concerning a Participant arising as
a result of this Plan. 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 Stock otherwise issuable under an Award (or allow the return
of shares of Stock) having a Fair Market Value equal to the sums required to be
withheld. Notwithstanding any other provision of the Plan, the number of shares
of Stock which may be withheld with respect to the issuance, vesting, exercise
or payment of any Award (or which may be repurchased from the Participant of such
Award within six months after such shares of 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
issuance, vesting, exercise or payment of the Award 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.

 

17

 

14.4                           NO RIGHT TO EMPLOYMENT OR SERVICES. Nothing in the Plan or any Award
Agreement shall interfere with or limit in any way the right of the Company or
any Subsidiary to terminate any Participant’s employment or services at any
time, nor confer upon any Participant any right to continue in the employ or
service of the Company or any Subsidiary.

 

14.5                           UNFUNDED STATUS OF AWARDS. The Plan is intended to be an “unfunded”
plan for incentive compensation. With respect to any payments not yet made to a
Participant pursuant to an Award, nothing contained in the Plan or any Award
Agreement shall give the Participant any rights that are greater than those of
a general creditor of the Company or any Subsidiary.

 

14.6                           INDEMNIFICATION. To the extent allowable pursuant to applicable law, each
member of the Committee or of the Board shall be indemnified and held harmless
by the Company from any loss, cost, liability, or expense that may be imposed
upon or reasonably incurred by such member in connection with or resulting from
any claim, action, suit, or proceeding to which he or she may be a party or in
which he or she may be involved by reason of any action or failure to act
pursuant to the Plan and against and from any and all amounts paid by him or
her in satisfaction of judgment in such action, suit, or proceeding against him
or her, provided he or she gives
the Company an opportunity, at its own expense, to handle and defend the same
before he or she undertakes to handle and defend it on his or her own behalf. The
foregoing right of indemnification shall not be exclusive of any other rights
of indemnification to which such persons may be entitled pursuant to the
Company’s Certificate of Incorporation or Bylaws, as a matter of law, or
otherwise, or any power that the Company may have to indemnify them or hold
them harmless.

 

14.7                           RELATIONSHIP TO OTHER BENEFITS. No payment pursuant to the Plan
shall be taken into account in determining any benefits pursuant to any
pension, retirement, savings, profit sharing, group insurance, welfare or other
benefit plan of the Company or any Subsidiary except to the extent otherwise
expressly provided in writing in such other plan or an agreement thereunder.

 

14.8                           EXPENSES. The expenses of administering the Plan shall be borne by the
Company and its Subsidiaries.

 

14.9                           TITLES AND HEADINGS. The titles and headings of the
Sections in the Plan are for convenience of reference only and, in the event of
any conflict, the text of the Plan, rather than such titles or headings, shall
control.

 

14.10                     FRACTIONAL SHARES. No fractional shares of 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.

 

14.11                     LIMITATIONS APPLICABLE TO SECTION 16 PERSONS.
Notwithstanding any other provision of the Plan, the Plan, and any Award
granted or awarded to any Participant who is then subject to Section 16 of the
Exchange Act, shall be subject to any additional limitations set forth in any
applicable exemptive rule under Section 16 of the

 

18

 

Exchange Act (including
any amendment to Rule 16b-3 of the Exchange Act) that are requirements for the
application of such exemptive rule. To the extent permitted by applicable law,
the Plan and Awards granted or awarded hereunder shall be deemed amended to the
extent necessary to conform to such applicable exemptive rule.

 

14.12                     GOVERNMENT AND OTHER REGULATIONS. The obligation of the Company to
make payment of awards in Stock or otherwise shall be subject to all applicable
laws, rules, and regulations, and to such approvals by government agencies as
may be required. The Company shall be under no obligation to register pursuant
to the Securities Act of 1933, as amended, any of the shares of Stock paid
pursuant to the Plan. If the shares paid pursuant to the Plan may in certain
circumstances be exempt from registration pursuant to the Securities Act of
1933, as amended, the Company may restrict the transfer of such shares in such
manner as it deems advisable to ensure the availability of any such exemption.

 

14.13                     GOVERNING LAW. The Plan and all Award Agreements shall be construed in
accordance with and governed by the laws of the State of Delaware.

 

*  *  *  *

 

I hereby certify
that the foregoing Plan was duly adopted by the Board of Directors of Reliant
Pharmaceuticals, Inc. on April 1, 2004 and approved by the shareholders of
Reliant Pharmaceuticals, Inc. by written action on April 15, 2004.

 

Executed on this 1st
day of April, 2004.

 

 

	
   

  	
   

  
	
   

  	
  Secretary

  

 

19EXHIBIT 10.1(a)

 

AMENDMENT NO. 1

TO RELIANT PHARMACEUTICALS, INC.

2004
EQUITY INCENTIVE PLAN

 

This Amendment No. 1 to the Reliant
Pharmaceuticals, Inc. 2004 Equity Incentive Plan, was duly adopted by the
Compensation Committee of the Board of Directors of Reliant Pharmaceuticals, Inc.
(the “Committee”) on May 10, 2005 and approved by the Board of
Directors of the Pharmaceuticals, Inc. on May 11, 2005 and the
stockholders of Reliant Pharmaceuticals, Inc., by written action on May 13,
2005.

 

In
accordance with the requirements of Section 13.1 of the Reliant
Pharmaceuticals, Inc. 2004 Equity Incentive Plan (the “Original Plan”),
the Committee desires to amend certain provisions of the Original Plan as more
particularly set forth herein.

 

1.                                       Definitions.
Capitalized terms used but not defined herein shall have the respective
meanings given to such terms in the Original Plan.

 

2.                                       Amendment to Section 3.1
– NUMBER OF SHARES. Section 3.1(a) of the Original Plan is hereby
deleted, and amended and restated in its entirety to read as follows:

 

(a)                                  Subject to Article 11
the aggregate number of shares of Stock which may be issued or transferred
pursuant to Awards under the Plan shall be the sum of (i) 3,843,600 shares of Stock; plus (ii) any
shares of Stock which would again become available for issuance under the
Company’s Equity Incentive Plan (formerly known as the Reliant Pharmaceuticals,
LLC Equity Incentive Plan) upon forfeiture of options or restricted stock
previously granted thereunder. The payment of Dividend Equivalents in
conjunction with any outstanding Awards shall not be counted against the shares
available for issuance under the Plan.

 

3.                                       No Other
Amendments. Except as specifically amended hereby, the Original Plan shall
continue in full force and effect as written. All references in the Original
Plan to “this Plan,” “herein,” “hereof,” “hereby” and words of similar import
shall refer to the Original Plan as amended hereby.

 

4.                                       Governing Law.
This Amendment shall be construed in accordance with and governed by the law of
the State of Delaware.

 

 

	
   

  	
  Certified on this 13th day of
  May, 2005

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Michael Lerner

  
	
   

  	
  Secretary

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