Document:

Exhibit 10.5

 

RELIANT
PHARMACEUTICALS, LLC.

 

EQUITY
INCENTIVE PLAN

 

Adopted as
of July 6, 2000

 

 

TABLE OF
CONTENTS

 

	
   

  	
   

  	
   

  	
   

  	
  PAGE

  
	
  1.

  	
   

  	
  PURPOSES
  OF THE PLAN.

  	
   

  	
  1

  
	
  2.

  	
   

  	
  DEFINITIONS.

  	
   

  	
  1

  
	
  3.

  	
   

  	
  ADMINISTRATION
  OF THE PLAN.

  	
   

  	
  3

  
	
  4.

  	
   

  	
  ELIGIBILITY.

  	
   

  	
  5

  
	
  5.

  	
   

  	
  LIMITATIONS.

  	
   

  	
  5

  
	
  6.

  	
   

  	
  TERM
  OF PLAN.

  	
   

  	
  5

  
	
  7.

  	
   

  	
  OPTION
  EXERCISE PRICE AND CONSIDERATION.

  	
   

  	
  5

  
	
  8.

  	
   

  	
  EXERCISE
  OF OPTION.

  	
   

  	
  5

  
	
  9.

  	
   

  	
  NON-TRANSFERABILITY
  OF OPTIONS AND RESTRICTED UNITS.

  	
   

  	
  8

  
	
  10.

  	
   

  	
  RESTRICTED
  UNITS.

  	
   

  	
  8

  
	
  11.

  	
   

  	
  ADJUSTMENTS
  UPON CHANGES IN CAPITALIZATION, MERGER OR ASSET SALE.

  	
   

  	
  9

  
	
  12.

  	
   

  	
  TIME
  OF GRANTING OPTIONS AND RESTRICTED UNITS.

  	
   

  	
  11

  
	
  13.

  	
   

  	
  AMENDMENT
  AND TERMINATION OF THE PLAN.

  	
   

  	
  11

  
	
  14.

  	
   

  	
  INABILITY
  TO OBTAIN AUTHORITY.

  	
   

  	
  12

  
	
  15.

  	
   

  	
  INFORMATION
  TO PARTICIPANTS.

  	
   

  	
  12

  
	
  16.

  	
   

  	
  INVESTMENT
  INTENT.

  	
   

  	
  12

  
	
  17.

  	
   

  	
  CONVERSION
  TO C-CORPORATION.

  	
   

  	
  12

  
	
  18.

  	
   

  	
  GOVERNING
  LAW.

  	
   

  	
  13

  

 

i

 

RELIANT
PHARMACEUTICALS, LLC

 

EQUITY
INCENTIVE PLAN

 

1. Purposes of the Plan. The purposes of the
Reliant Pharmaceuticals, LLC Equity Incentive Plan are to attract and retain
the best available personnel for positions of substantial responsibility, to
provide additional incentive to Employees, Managers and Consultants and to
promote the success of the Company’s business.

 

2. Definitions. As used herein, the following
definitions shall apply:

 

(a) “Acquisition”
means (i) any consolidation or merger of the Company with or into any other
corporation or other entity or person in which the Members prior to such
consolidation or merger to own less than fifty percent (50%) of the Company’s
equity immediately after such consolidation or merger, excluding any
consolidation or merger effected exclusively to change the domicile of the
Company or to convert the Company to a C-Corporation, whereupon the Options,
Restricted Units and this Plan are assumed by the successor entity; or (ii) a
sale of all or substantially all of the assets of the Company in a complete
liquidation or dissolution of the Company in a transaction not covered by the
exceptions to clause (i) above.

 

(b) “Applicable
Laws” means the requirements relating to the administration of
option plans under U.S. state laws, U.S. federal and state securities laws, the
Code, and the applicable laws of any foreign country or jurisdiction where
Options or Restricted Units are granted under the Plan.

 

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

 

(d) “C-Corporation”
means a corporation subject to taxation under Chapter C of the Code.

 

(e) “Capital
Contribution” means the contributions by the Members to the capital
of the Company.

 

(f) “Cause”
shall mean a termination by the Company of the Service Provider’s relationship
with the Company due to (i) the commission by the Service Provider of an act of
fraud against the Company or any affiliate thereof or embezzlement, (ii) a
breach of one or more of the following duties to the Company: (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, (C) the duty not to engage in
self-dealing with respect to the Company’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 Service Provider owes to the
Company, (iii) 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, (iv) intentional misconduct with respect to his duties to the
Company, including, but not limited to, knowing and intentional violation by
the Service Provider of written policies of the Company, including policies
regarding confidential information and non-competition, or specific directions
of the Board or superior officers of the Company, 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 (v) the
failure of the Service Provider, after written notice from the Company, to
render services to the Company in accordance with his employment or other
relationship with the Company, which failure is not cured within 10 days of
receipt of such notice.

 

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

 

(h) “Committee”
means the Compensation Committee of the Board.

 

(i) “Company”
means Reliant Pharmaceuticals, LLC, a Delaware limited liability company, and
any successor thereto.

 

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

 

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

 

(l) “Employee”
means any person, including a Manager, who is designated by the Board as an
employee. 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, or any successor. Neither
service as a Manager nor payment of a Manager’s fee by the Company shall be
sufficient, by itself, to constitute “employment” by the Company. In addition,
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
judicial action or otherwise) to have been a common law employee of the
Company, rather than an independent contractor.

 

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

 

(n) “Fair Market
Value” shall be the fair market value of any Unit as established by
the Committee acting in good faith.

 

2

 

(o) “Holder”
means a person who holds the right to exercise an Option under this Plan or any
Units acquired pursuant to the exercise of an Option or upon the award of a
Restricted Unit.

 

(p) “Immediate
Family” means parents, siblings, spouse and issue, spouses of such
issue and any trust for the benefit of, or the legal representative of, any of
the preceding persons, or any partnership substantially all of the partners of
which are one or more of such persons or the Participant or any limited
liability company substantially all of the members of which are one or more of
such persons or the Participant.

 

(q) “Manager”
means a member of the Board.

 

(r) “Member”
means any person who has been admitted to the Company as a member of the
Company in accordance with the terms of the LLC Agreement, and who owns an
interest in the Company, including, without limitation Series A Holders, Series
B Holders and Class One Holder, each as defined in the LLC Agreement.

 

(s) “LLC Agreement”
means the Limited Liability Company Operating Agreement of Reliant
Pharmaceuticals, LLC, dated as of July 6, 2000 by the Members named therein, as
amended from time to time.

 

(t) “Option”
means a option to purchase Units granted pursuant to the Plan.

 

(u) “Option
Agreement” means a written agreement between the Company and a
Holder evidencing the terms and conditions of an individual Option grant. The
Option Agreement is subject to the terms and conditions of the Plan.

 

(v) “Participant”  means a person who has been granted an
option or awarded a Restricted Unit pursuant to the Plan.

 

(w) “Plan”
means the Reliant Pharmaceuticals, LLC Equity Incentive Plan.

 

(x) “Restricted
Units” means Units acquired pursuant to the exercise of an unvested
Option in accordance with Section 9(h) below or pursuant to a grant under
Section 11 below.

 

(y) “Service
Provider” means an Employee, Manager or Consultant.

 

(z) “Unit”
means a Common Unit in the Company.

 

3. Administration of the Plan.

 

(a) Delegation; Appointment. The Committee
shall have, in connection with the administration of the Plan, the power to
delegate to a subcommittee any of the administrative

 

3

 

powers
the Committee is authorized to exercise. Appointment of Committee members shall
be effective upon acceptance of appointment. Committee members may resign at
any time by delivering written notice to the Board. Vacancies in the Committee
may only be filled by the Board.

 

(b) Powers of the Committee. Subject to the
provisions of the Plan and the specific duties delegated by the Board to such
Committee, and subject to the approval of any relevant authorities, the
Committee shall have the authority in its discretion:

 

(i) to determine the Fair Market Value;

 

(ii) to select the Service Providers to whom Options
and Restricted Units may from time to time be granted or awarded hereunder;

 

(iii) to determine the number of Units to be covered
by each such award or grant hereunder;

 

(iv) to approve forms of agreement for use under the
Plan;

 

(v) to determine the terms and conditions of any
Option or Restricted Unit granted or awarded hereunder (such terms and
conditions include, but are not limited to, the exercise price, the time or
times when Options or Restricted Units may vest or be exercised (which may be
based on performance criteria), any vesting acceleration or waiver of
forfeiture restrictions, and any restriction or limitation regarding any Option
or Restricted Unit or the Units relating thereto, based in each case on such
factors as the Committee, in its sole discretion, shall determine);

 

(vi) to determine whether to offer to buyout a
previously granted Option as provided in subsection 8(j) and to determine the
terms and conditions of such offer and buyout (including whether payment is to
be made in cash or other property);

 

(vii) to prescribe, amend and rescind rules and
regulations relating to the Plan, including rules and regulations relating to
sub-plans established for the purpose of qualifying for preferred tax treatment
under foreign tax laws;

 

(viii) to amend the Plan or any Option or Restricted
Unit granted under the Plan as provided in Section 13; and

 

(ix) to construe and interpret the terms of the Plan
and awards granted pursuant to the Plan and to exercise such powers and perform
such acts 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.

 

4

 

(c) Effect of Committee’s Decision. All
decisions, determinations and interpretations of the Committee shall be final
and binding on all Holders.

 

4. Eligibility.

 

Options and Restricted Units may be granted to Service
Providers, as selected by the Committee in its sole discretion. If otherwise
eligible, a Service Provider who has been granted an Option or Restricted Unit
may be granted additional Options or Restricted Units.

 

5. Limitations. Neither the Plan, any Option
nor any Restricted Unit shall confer upon a Participant any right with respect
to continuing the Participant’s employment or consulting relationship with the
Company, nor shall they interfere in any way with the Participant’s right or
the Company’s right to terminate such employment or consulting relationship at
any time, with or without Cause.

 

6. Term of Plan. The Plan shall become
effective upon its initial adoption by the Board and shall continue in effect
until it is terminated under Section 13 of the Plan. No Options or Restricted
Units may be issued under the Plan after the Company is converted from a
limited liability company to a C-Corporation.

 

7. Option Exercise Price and Consideration.

 

(a) The exercise price for the Units to be issued
upon exercise of an Option shall be the Fair Market Value of an Unit on the
date the Option is granted.

 

(b) The consideration to be paid for the Units to be
issued upon exercise of an Option, including the method of payment, shall be
determined by the Committee. Such consideration may consist of (i) cash, (ii)
check, (iii) property (including underlying Units) of any kind which
constitutes good and valuable consideration, or (iv) with the consent of the
Committee, any combination of the foregoing methods of payment.

 

8. Exercise of Option.

 

(a) Vesting; Fractional Exercises. Options
granted hereunder shall be vested and exercisable according to the terms hereof
at such times and under such conditions as determined by the Committee and set
forth in the Option Agreement. If, on the date of termination, the Holder is
not vested as to his or her entire Option, the Units covered by the unvested
portion of the Option shall immediately cease to be issuable under the Option.
If, after termination, the Holder does not exercise the vested portion of the
Option within the time period specified herein or the Option Agreement, the
Option shall terminate. An Option may not be exercised for a fraction of an
Unit.

 

5

 

(b) Deliveries upon Exercise. All or a
portion of an exercisable Option shall be deemed exercised upon delivery of all
of the following to the Committee:

 

(i) A written or electronic notice complying with
the applicable rules established by the Committee stating that the Option, or a
portion thereof, is exercised. The notice shall be signed by the Participant or
other person then entitled to exercise the Option or such portion of the
Option;

 

(ii) Such representations and documents as the
Committee, in its absolute discretion, deems necessary or advisable to effect
compliance with Applicable Laws. The Committee may, in its absolute discretion,
also take whatever additional actions it deems appropriate to effect such
compliance;

 

(iii) Upon the exercise of all or a portion of an
unvested Option pursuant to Section 9(h), a Restricted Unit Agreement in a form
determined by the Committee and signed by the Holder or other person then
entitled to exercise the Option or such portion of the Option; and

 

(iv) In the event that the Option shall be exercised
by any person or persons other than the Participant, appropriate proof of the
right of such person or persons to exercise the Option.

 

(v) A joinder agreement to the LLC Agreement, a
counterpart signature page to the LLC Agreement, or such other documents
binding Holder to the LLC Agreement as may be proscribed by the Committee.

 

(c) Conditions to Ownership of Units. The
Company shall not be required to issue any Units purchased upon the exercise of
any Option or portion thereof prior to fulfillment of all of the following
conditions:

 

(i) The completion of any registration or other
qualification of such Units under any state or federal law, or under the
rulings or regulations of the Securities and Exchange Commission or any other governmental
regulatory body which the Committee shall, in its absolute discretion, deem
necessary or advisable;

 

(ii) The obtaining of any approval or other
clearance from any state or federal governmental agency which the Committee
shall, in its absolute discretion, determine to be necessary or advisable;

 

(iii) The lapse of such reasonable period of time
following the exercise of the Option as the Committee may establish from time
to time for reasons of administrative convenience; and

 

6

 

(iv) The receipt by the Company of full payment for
such Units, including payment of any applicable withholding tax, which in the
discretion of the Committee may be in the form of consideration used by the
Holder to pay for such Units under Section 7(b).

 

(d) Termination of Relationship as a Service
Provider. If the Participant ceases to be a Service Provider other than for
Cause or by reason of the Participant’s Disability or death, the Holder of such
Participant’s Options may exercise the Option within such period of time as is
specified in the Option Agreement to the extent that the Option is vested on
the date of termination (but in no event later than the expiration of the term
of the Option as set forth in the Option Agreement). In the absence of a
specified time in the Option Agreement, the Option shall remain exercisable for
three (3) months following the Participant’s termination.

 

(e) Disability of Participant. If a
Participant ceases to be a Service Provider as a result of Disability, the
Holder of such Participant’s Option may exercise such Option within such period
of time as is specified in the Option Agreement to the extent the Option is
vested on the date of termination (but in no event later than the expiration of
the term of such Option as set forth in the Option Agreement). In the absence
of a specified time in the Option Agreement, the Option shall remain
exercisable for twelve (12) months following the Participant’s termination. .

 

(f) Death of Participant. If a Participant
dies while a Service Provider, the Option may be exercised within such period
of time as is specified in the Option Agreement by the executor of the
Participant’s estate or by a person who acquires the right to exercise the
Option by bequest, inheritance, or the laws of descent or distribution, but
only to the extent that the Option is vested on the date of death. In the
absence of a specified time in the Option Agreement, the Option shall remain
exercisable for twelve (12) months following the Participant’s termination (but
in no event later than the expiration of the term of such Option as set forth
in the Option Agreement).

 

(g) Termination for Cause. Unless otherwise
specifically provided in a Participant’s Option Agreement, the Option shall
terminate automatically if the Participant ceases to be a Service Provider for
Cause.

 

(h) Early Exercisability. The Committee may
provide in the terms of a Participant’s Option Agreement that the Holder may,
at any time before the Participant’s status as a Service Provider terminates,
exercise the Option in whole or in part prior to the full vesting of the
Option; provided, however, that
in addition to the provisions of Seciton 8(i), unless the Committee determines
otherwise, the Company shall be obligated to repurchase any unvested Units
acquired upon exercise of an Option upon termination of the Participant’s
status as a Service Provider, and such unvested Units may be subject to any
repurchase, forfeiture, transfer or other restrictions as the Committee may
determine in its sole discretion. Subject to Section 1, purchase price for
Units repurchased by the Company and the terms of such repurchase right shall
be determined by the Committee in its sole discretion, and shall be set forth
in the Restricted Unit Agreement.

 

7

 

(i) Repurchase Provisions. The Committee in
its discretion may provide that the Company may repurchase Units acquired upon
exercise of an Option upon a Participant’s termination as a Service Provider; provided, however that any such repurchase
right shall be set forth in the applicable Option Agreement or in another
agreement referred to in such agreement.

 

(j) Buyout Provisions. The Committee may at
any time buyout for a payment in cash or other consideration, an Option
previously granted, based on such terms and conditions as the Committee shall
establish and communicate to the Holder at the time that such offer is made.

 

(k) Capital Account. Upon exercise of an
Option or portion thereof the Holder’s capital account treatment will be
governed by the LLC Agreement.

 

9. Non-Transferability of Options and Restricted
Units. Other than as approved by the Committee in advance and in writing,
Options and Restricted Units may not be sold, pledged, assigned, hypothecated,
transferred, or disposed of in any manner other than by will or by the laws of
descent or distribution and Options may be exercised, during the lifetime of
the Participant, only by the Participant. Notwithstanding the foregoing provisions
of this Section 9, the Committee may, provide that Options or Restricted Units
may be transferred to Immediate Family; provided, however, that any such
transfer is without payment of any consideration whatsoever, that no such
transfer shall be valid unless first approved by the Committee, acting in its
sole discretion, and that any Option or Restricted Unit so transferred shall
remain subject to the terms and conditions of the Option or Restricted Unit
Agreement.

 

10. Restricted Units.

 

(a) Grants. Restricted Units may be issued
either alone, in addition to, or in tandem with Options granted under the Plan
and/or cash awards made outside of the Plan. After the Committee determines
that it will offer Restricted Units under the Plan, it shall advise the offeree
in writing of the terms, conditions and restrictions related to the Restricted
Unit including, the price to be paid, if any. The grant of a Restricted Unit
shall be accepted by execution of a Restricted Unit Agreement in the form
determined by the Committee.

 

(b) Repurchase Right. Unless the Committee
determines otherwise, the Company shall be obligated to repurchase any unvested
Units granted thereunder upon the termination of the Participant’s status as a
Service Provider for any reason. Subject to Section 11, the purchase price for
Units repurchased by the Company pursuant to such repurchase right and the rate
at with such repurchase right shall lapse shall be determined by the Committee
in its sole discretion, and shall be set forth in the Restricted Unit
Agreement.

 

8

 

(c) Other Provisions. The Restricted Unit
Agreement shall contain such other terms, provisions and conditions not
inconsistent with the Plan as may be determined by the Committee in its sole
discretion.

 

(d) Rights and Obligations as a Member. Once
a Restricted Unit is granted, the Holder shall have rights equivalent to those
of a Member; provided, however, that until all of the restrictions imposed
under the Restricted Unit Agreement, if any, expire or shall have been removed,
the Holder’s interest in such Restricted Units shall be subject to repurchase
and forfeiture as provided in the Restricted Unit Agreement.

 

11. Adjustments upon Changes in Capitalization,
Merger or Asset Sale.

 

(a) In the event that the Committee determines that
any dividend or other distribution (whether in the form of cash, additional
Units or other property), any Capital Contributions to the Company,
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 Units or other securities of the Company,
issuance of warrants or other rights to purchase Units or other securities of
the Company, or other similar corporate transaction or event, in the Committee’s
sole discretion, affects the Units such that an adjustment is determined by the
Committee to be appropriate in order to prevent dilution or enlargement of the
benefits or potential benefits intended to be made available under the Plan or
with respect to any Option or Restricted Unit, then the Committee shall, in
such manner as it may deem equitable, adjust any or all of:

 

(i) the kind of Units (or other securities or
property) with respect to which Options or Restricted Units may be granted or
awarded;

 

(ii) the number and kind of Units (or other
securities or property) subject to outstanding Options or Restricted Units; and

 

(iii) the grant or exercise price with respect to
any Option or Restricted Unit.

 

(b) In the event of any transaction or event
described in Section 11(a), the Committee, in its sole and absolute discretion,
and on such terms and conditions as it deems appropriate, either by the terms
of the Option, or Restricted Unit Agreement or by action taken prior to the
occurrence of such transaction or event and either automatically or upon the
Holder’s request, is hereby authorized to take any one or more of the following
actions whenever the Committee determines that such action is appropriate in
order to prevent dilution or enlargement of the benefits or potential benefits
intended to be made available under the Plan or with respect to any Option, or
Restricted Unit granted or issued under the Plan or to facilitate such
transaction or event:

 

(i) To provide for either the purchase of any such
Option, or Restricted Unit for an amount of cash equal to the amount that could
have been obtained upon the exercise of such Option or realization of the
Holder’s rights had such Option or Restricted Unit been currently exercisable
or payable or fully vested or the replacement of such Option or Restricted Unit
with other rights or property selected by the Committee in its sole discretion;

 

9

 

(ii) To provide that such Option shall be
exercisable as to all Units covered thereby, notwithstanding anything to the
contrary in the Plan or the provisions of such Option;

 

(iii) To provide that such Option, or Restricted
Unit be assumed by the successor or survivor entity, or a parent or subsidiary
thereof, or shall be substituted for by similar options, 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 prices;

 

(iv) To make adjustments in the number and type of
Units (or other securities or property) subject to outstanding Options, and/or
in the terms and conditions of (including the grant or exercise price), and the
criteria included in, outstanding Options or Restricted Units or Options or
Restricted Units which may be granted in the future; and

 

(v) To provide that immediately upon the
consummation of such event, such Option shall not be exercisable and shall
terminate; provided, that for a
specified period of time prior to such event, such Option shall be exercisable
as to all Units covered thereby, and the restrictions imposed under an Option
Agreement or Restricted Unit Agreement upon some or all Units may be terminated
and, in the case of Restricted Units, some or all Units covered by such
Restricted Units may cease to be subject to repurchase, notwithstanding
anything to the contrary in the Plan or the provisions of such Option, or
Restricted Unit Agreement.

 

(c) The Committee may, in its discretion, include
such further provisions and limitations in any Option, Restricted Unit
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 Options, or Restricted
Units outstanding under the Plan or may substitute similar awards (including an
award to acquire the same consideration paid to the Members in the transaction
described in this subsection 11(d)) 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 Options or Restricted Units or
does not substitute similar awards for those outstanding under the Plan, then
with respect to (i) Options or Restricted Units held by participants in the
Plan whose status as a Service Provider has not terminated prior to such event,

 

10

 

the
vesting of such Options or Restricted Units (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 Options terminated if not
exercised prior to the closing of such Acquisition), and (ii) any other Options
outstanding under the Plan, such Options or Restricted Units shall be
terminated if not exercised prior to the closing of the Acquisition.

 

(e) Notwithstanding the foregoing, in the event that
the Company becomes a party to a transaction that is intended to qualify for “pooling
of interests” accounting treatment and, but for one or more of the provisions
of this Plan or any Option Agreement or any Restricted Unit Agreement would so
qualify, then this Plan and any such agreement shall be interpreted so as to
preserve such accounting treatment, and to the extent that any provision of the
Plan or any such agreement would disqualify the transaction from pooling of
interests accounting treatment (including, if applicable, an entire Option
Agreement or Restricted Unit Agreement), then such provision shall be null and
void. All determinations to be made in connection with the preceding sentence
shall be made by the independent accounting firm whose opinion with respect to “pooling
of interests” treatment is required as a condition to the Company’s
consummation of such transaction.

 

(f) The existence of the Plan, any Option Agreement
or Restricted Unit Agreement and the Options granted hereunder shall not affect
or restrict in any way the right or power of the Company or the Members to make
or authorize any adjustment, recapitalization, reorganization or other change
in the Company’s capital structure or its business, any merger or consolidation
of the Company, any issue of Units or of options, warrants or rights to
purchase Units or of bonds, debentures, preferred or prior preference Units
whose rights are superior to or affect the Units or the rights thereof or which
are convertible into or exchangeable for Units, or the dissolution or liquidation
of the Company, or any sale or transfer of all or any part of its assets or
business, or any other corporate act or proceeding, whether of a similar
character or otherwise.

 

12. Time of Granting Options and Restricted Units.
The date of grant of an Option or Restricted Unit shall, for all purposes, be
the date on which the Committee makes the determination granting such Option or
Restricted Unit, or such other date as is determined by the Committee. Notice
of the determination shall be given to each Service Provider to whom an Option
or Restricted Unit is so granted within a reasonable time after the date of
such grant.

 

13. Amendment and Termination of the Plan.

 

(a) Amendment and Termination. The Board may
at any time wholly or partially amend, alter, suspend or terminate the Plan.

 

(b) Member Approval. The Board shall obtain
approval of the Members to any Plan amendment to the extent necessary and
desirable to comply with Applicable Laws.

 

11

 

(c) Effect of Amendment or Termination. No
amendment, alteration, suspension or termination of the Plan shall impair the
rights of any Holder, unless mutually agreed otherwise between the Holder and
the Committee (including as provided under the Option Agreement or Restricted
Unit Agreement), which agreement must be in writing and signed by the Holder
and the Company. Termination of the Plan shall not affect the Committee’s
ability to exercise the powers granted to it hereunder with respect to Options,
or Restricted Units granted or awarded under the Plan prior to the date of such
termination.

 

14. Inability to Obtain Authority. The
inability of the Company to obtain authority from any regulatory body having
jurisdiction, which authority is deemed by the Company’s counsel to be
necessary to the lawful issuance and sale of any Units hereunder, shall relieve
the Company of any liability in respect of the failure to issue or sell such
Units as to which such requisite authority shall not have been obtained.

 

15. Information to Participants. The Company
shall provide to each Participant, not less frequently than annually during the
period such Participant has one or more Options or Restricted Units
outstanding, and, in the case of any Holder of any Units, during the period
such individual holds such Units, copies of annual financial statements.
Notwithstanding the preceding sentence, the Company shall not be required to
provide such statements to key employees whose duties in connection with the
Company assure their access to equivalent information.

 

16. Investment Intent. The Company may
require a Participant, as a condition of exercising or acquiring Units under
any Option or upon grant of a Restricted Unit, (i) to give written assurances
satisfactory to the Company as to the participant’s knowledge and experience in
financial and business matters and/or to employ a purchaser representative
reasonably satisfactory to the Company who is knowledgeable and experienced in
financial and business matters and that he or she is capable of evaluating,
alone or together with the purchaser representative, the merits and risks of
exercising the Option or Restricted Unit; and (ii) to give written assurances
satisfactory to the Company stating that the Participant is acquiring the Units
subject to the Option of the Restricted Unit Agreement for the Participant’s
own account and not with any present intention of selling or otherwise
distributing the Units. The foregoing requirements, and any assurances given
pursuant to such requirements, shall be inoperative if a determination is made
by counsel for the Company that any such requirement need not be met in the
circumstances under the then applicable securities laws. The Company may, upon
advice of counsel to the Company, place legends on certificates (or such other
appropriate documents) evidencing Units issued under the Plan as such counsel
deems necessary or appropriate in order to comply with applicable securities
laws, including, but not limited to, legends restricting the transfer of the
Units.

 

17. Conversion to C-Corporation. Upon
consummation of the conversion of the Company from a limited liability company
to a C-Corporation, subject to the provisions of the applicable agreement
setting forth the terms of such conversion, all Options and Restricted Units

 

12

 

granted
under the Plan shall be converted into, in such conversion, options to acquire
shares of, or share of, as applicable, the resulting corporation’s common
stock, subject to terms substantially equivalent to the terms of the Option or
Restricted Units they are intended to replace. In addition, the Committee may
take such action as is necessary to reflect the conversion of the Company to a
C-Corporation, including but not limited to amendment of any Option Agreement
or Restricted Unit Agreement to impose additional restrictions necessary to
satisfy any Applicable Laws, including any requirements of any stock exchange
upon which the stock may be listed.

 

18. Governing Law. The validity and
enforceability of this Plan shall be governed by and construed in accordance
with the laws of the State of Delaware without regard to otherwise governing
principles of conflicts of law.

 

* * * * * * *

 

I hereby certify that the Plan was duly adopted by
the Board of Managers of Reliant Pharmaceuticals, LLC on July 6, 2000 and
approved by the Members of Reliant Pharmaceuticals, LLC on                     ,
2000.

 

Executed on this             
day of                     ,
2000.

 

	
   

  	
   

  	
   

  
	
   

  	
  Secretary
  of Reliant Pharmaceuticals, LLC

  

 

13EXHIBIT 10.5(a)

 

UNANIMOUS WRITTEN
CONSENT

OF THE
BOARD OF MANAGERS OF

RELIANT
PHARMACEUTICALS, LLC

 

The undersigned, being all of the members of the Board
of Managers (the “Board”) of
Reliant Pharmaceuticals, LLC, a Delaware limited liability company (the “Company”), in lieu of a meeting of the Board, and pursuant
to the authority of Section 18-404(d) of the Delaware Limited Liability Company
Act, as amended and Section 8.5 of the Limited Liability Company Operating
Agreement of the Company, hereby consent to, authorize and adopt the following
resolutions with the same force and effect as if the undersigned were
personally present at a meeting of the Board and had voted for the same:

 

WHEREAS,  this
Company has adopted the Reliant Pharmaceuticals, LLC Equity Incentive Plan (the
“Plan”); and

 

WHEREAS, the Plan may be amended by this Board at
anytime; and

 

WHEREAS, it is desirable to amend the Plan.

 

NOW, THEREFORE, IT IS RESOLVED, that the Plan is
hereby amended effective as of July 6, 2000, by deleting Section 7(a) thereof
in its entirety and substituting the following in lieu thereof:

 

“(a)                           The exercise price for the Units to be
issued upon exercise of an Option shall be not less than the Fair Market Value
of a Unit on the date the Option is granted.”

 

FURTHER RESOLVED, that the Plan shall be conformed to
reflect the amendment authorized hereby;

 

FURTHER RESOLVED, that the proper officers of the
Company be, and each of them hereby is, authorized and directed to execute and
deliver, in the name and on behalf of the Company, and any and all agreements,
documents or instruments, and take such actions as may be necessary or
advisable to effect the intent of the resolutions set forth herein;

 

 

FURTHER RESOLVED, that for the purposes of these
resolutions, the “proper officers” of the Company shall be the Chairman of the
Board, the Vice Chairman of the Board, the Chief Executive Officer, the
President, any Vice President (regardless of designation), the Secretary, any
Assistant Secretary and the Treasurer of the Company; and

 

FURTHER RESOLVED, this Consent may be executed in
counterparts, each of which shall be deemed an original all of which, taken
together, shall constitute one and the same instrument.

 

(Signature
page follows)

 

2

 

Dated as of November 13, 2001

 

 

	
   

  	
   

  
	
   

  	
  Jack L. Bowman

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Herbert Conrad

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Fred B. Craves

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Joseph Krivulka

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Irwin Lerner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  David V. Milligan

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Gerald L. Cohn

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Mark S. Hoplamazian

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Thomas J. Pritzker

  
	
   

  	
   

  
	
   

  	
  BEING ALL OF THE MEMBERS OF

  THE BOARD OF MANAGERS OF

  RELIANT PHARMACEUTICALS, LLC

  

 

3

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