Document:

EXHIBIT 10.5(d)

 

UNANIMOUS WRITTEN
CONSENT

OF THE
BOARD OF DIRECTORS OF

RELIANT
PHARMACEUTICALS, INC.

 

The
undersigned, being all of the directors of Reliant Pharmaceuticals, Inc., a
Delaware corporation (the “Corporation”),
in lieu of a meeting of the Board of Directors of the Corporation (the “Board”) and pursuant to the authority of Section 141(f) of
the Delaware General Corporation Law and Article III, Section 8 of the By-Laws
of the Corporation, 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. Capitalized terms used
herein and not otherwise defined shall have the meanings set forth in the Plan
of Conversion (as defined below).

 

Adoption of Equity Incentive Plan and
Assumption of Certain Obligations Related to Stock Options and Warrants

 

WHEREAS, the Board
of Managers of the Corporation’s predecessor, Reliant Pharmaceuticals, LLC,
approved and ratified, and the Corporation has adopted, a Plan of Conversion,
dated as of March     , 2004, a copy of which is attached
as Exhibit A (the “Plan of Conversion”),
pursuant to which, among other things, (i) Reliant Pharmaceuticals, LLC
converted into the Corporation and (ii) the Reliant Pharmaceuticals, LLC Equity
Incentive Plan (the “LLC Equity Plan”)
automatically terminated to the extent necessary such that no further options
remain eligible for grant thereunder, although such Plan continues to govern
options already issued thereunder;

 

WHEREAS, the Plan
of Conversion provides that the Corporation shall adopt, and the Board has
determined that it is in the best interests of the Corporation to adopt, the
Reliant Pharmaceuticals, Inc. 2004 Equity Incentive Plan substantially in the
form attached as Exhibit B (the “2004
Equity Incentive Plan”);

 

WHEREAS, the Plan
of Conversion provides that the Corporation shall reserve, and the Board has
determined that it is in the best interests of the Corporation to reserve, an
aggregate of 1,343,600 shares of Common Stock for issuance under the 2004
Equity Incentive Plan plus any shares subject to options granted under the LLC
Equity Plan which are forfeited or unexercised at the expiration of their term
(by cancellation or otherwise); and

 

 

WHEREAS, the Plan
of Conversion provides that each option to purchase Common Units (the “Options”) outstanding immediately prior to
the effective time of the corporation conversion (the “Effective Time”) under the LLC Equity Plan,
whether or 

 

 

not exercisable,
continues to be outstanding according to the terms and conditions as set forth
in the LLC Equity Plan and any option agreements thereunder in effect
immediately prior to the Effective Time, except that (i) each such Option is
automatically exercisable (or will become exercisable in accordance with its
terms) for that number of shares of Common Stock equal the number of Common
Units that were issuable upon exercise of such Option, and (ii) the LLC Equity
Plan shall be amended to the extent necessary to reflect the Conversion from a
limited liability company to a corporation and that such Options will be
exercisable for shares of Common Stock and not Common Units.

 

NOW, THEREFORE, BE IT RESOLVED, that subject to
approval by the stockholders of the Corporation, the 2004 Equity Incentive Plan
be, and it is hereby, adopted, authorized and approved in all respects;

 

FURTHER RESOLVED, that the Board hereby approves the
submission of the 2004 Equity Incentive Plan to the stockholders of the
Corporation for their approval and recommends such approval;

 

FURTHER RESOLVED, that an aggregate of
1,343,600 shares of Common Stock are hereby reserved for issuance under the
2004 Equity Incentive Plan in accordance with the terms of the 2004 Equity
Incentive Plan, plus any shares subject to options granted under the LLC Equity
Plan or the 2004 Equity Incentive Plan which are forfeited or unexercised at
the expiration of their term (by cancellation or otherwise);

 

FURTHER RESOLVED,
that the Board hereby authorizes, empowers and directs the proper officers of
the Corporation to take all actions necessary to cause the Corporation to (i)
assume the obligations of Reliant Pharmaceuticals, LLC with respect to all
Options issued and outstanding under the LLC Equity Plan and (ii) settle, as
and when appropriate, the Options issued and outstanding under the LLC Equity
Plan with options to purchase Common Stock, which options shall be subject to
the terms of the LLC Equity Plan and the option agreements related thereto; provided,
however, that the Corporation does not assume any Options issued under
the LLC Equity Plan that are not outstanding at the Effective Time;

 

FURTHER RESOLVED
that any proper officer may order the transfer agent of the Corporation (which
may be the Corporation) to set aside and reserve that number of shares (the “Underlying Shares”) of the Corporation’s
Common Stock, as can be issued upon the exercise of all of the options granted
under the 2004 Equity Incentive Plan, options granted under the LLC Equity Plan
and warrants issued by the Corporation (or its predecessors), from the
authorized but unissued shares of Common Stock; and

 

FURTHER RESOLVED,
that upon issuance and delivery of the Underlying Shares against payment of the
exercise price therefor in accordance with the terms of the 2004 Equity
Incentive Plan, the LLC Equity Plan or warrants issued by the Corporation (or
its predecessors), as applicable, and the option agreements related thereto,
the Underlying Shares shall be validly issued, fully paid and nonassessable.

 

 

Adoption of SAR Plan and Assumption
of Certain Obligations Related to UARs

 

WHEREAS, pursuant
to the Plan of Conversion, the Reliant Pharmaceuticals, LLC Unit Appreciation
Rights Plan (the “LLC UAR Plan”)
automatically terminated to the extent necessary such that no further awards
remain eligible for grant thereunder, although it continues to govern awards
already granted thereunder;

 

 WHEREAS, the Plan of Conversion provides that
the Corporation shall adopt, and the Board has deemed that it is in the best
interests of the Corporation to adopt, the Reliant Pharmaceuticals, Inc. Stock
Appreciation Rights Plan substantially in the form attached as Exhibit C
(the “SAR Plan”); and

 

WHEREAS, the Plan
of Conversion provides that each unit appreciation
right (“UAR”) outstanding
immediately prior to the Effective Time under the LLC UAR Plan will, whether or
not then exercisable, continue be outstanding according to the terms and
conditions as set forth in the LLC UAR Plan and any UAR agreements thereunder
in effect immediately prior to the Effective Time, except that each such UAR
shall automatically be adjusted to reflect that the appreciation is by
reference to the value of the Common Stock and not the value of the Common
Units.

 

NOW, THEREFORE, BE
IT RESOLVED, that the SAR Plan be, and it is hereby, adopted, authorized and
approved in all respects;

 

FURTHER RESOLVED,
the Board hereby authorizes, empowers and directs the proper officers of the
Corporation to (i) assume the obligations of Reliant Pharmaceuticals, LLC with
respect to the UARs issued and outstanding under the LLC UAR Plan at the
Effective Time and (ii) settle, as and when appropriate, the UARs issued under
the LLC UAR Plan with rights with respect to the value of Common Stock, which
rights shall be subject to the terms of the LLC UAR Plan and the agreements
related thereto; provided, however, that the Corporation does not
assume any UARs issued under the LLC UAR Plan that are not outstanding at the
Effective Time.

 

General Resolutions:

 

FURTHER RESOLVED, that the proper officers of the
Corporation be, and each of them hereby is, authorized, directed and empowered,
in the name and on behalf of the Corporation to negotiate, execute, acknowledge
and deliver any and all documents and instruments and to take any and all such
actions including making changes to such documents or instruments, as he may
deem necessary or desirable in order to carry out the intent and purposes of
the foregoing resolutions, the execution and delivery of such documents or
instruments or the taking of such action to be conclusive evidence that such
execution and delivery or the taking of such action was authorized by these
resolutions;

 

FURTHER RESOLVED,
that all actions heretofore taken and expenses incurred by any proper officer
heretofore in furtherance of any of the actions authorized or ratified

 

 

by the foregoing resolutions, to the extent consistent
with such resolutions, hereby are expressly ratified, confirmed, adopted and
approved in all respects;

 

FURTHER RESOLVED, that the “proper officers” of the Corporation for the
purposes of these resolutions 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 and the Treasurer of the
Corporation; and

 

FURTHER RESOLVED, that this written consent may be executed in
one or more counterparts, any of which may be executed and transmitted by
facsimile, each of which will be deemed to be an original of this written
consent and all of which, when taken together, will be deemed to constitute one
and the same instrument.

 

[Signature Page Follows]

 

 

Dated: April 1, 2004

 

	
   

  	
   

  
	
   

  	
  Jack L. Bowman

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Gerald L. Cohn

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Fred B. Craves

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Mark S. Hoplamazian

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Joseph Krivulka

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Ken Langone

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Ernest Mario

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  David V. Milligan

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Richard F. Pops

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Thomas J. Pritzker

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BEING ALL OF THE MEMBERS

  OF THE BOARD OF DIRECTORS

  OF THE CORPORATION

  

 

 

Exhibit
A

 

Plan of
Conversion

 

 

Exhibit
B

 

Equity
Incentive Plan

 

 

Exhibit
C

 

SAR PlanEXHIBIT 10.6

 

AMENDED
AND RESTATED

EMPLOYMENT
AGREEMENT

 

THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this “Agreement”),
dated as of November 15, 2005, but effective as of July 1, 2005 (the “Effective
Date”), is made between RELIANT PHARMACEUTICALS, INC., a Delaware corporation
(the “Company”), and ERNEST MARIO (the “Executive”).

 

WHEREAS, Reliant Pharmaceuticals, LLC, predecessor to
the Company, and the Executive entered into an Employment Agreement dated April
29, 2003 (the “Original Agreement”) pursuant to which the Company employed
the Executive;

 

WHEREAS, the Company and the Executive desire to amend
and restate the Original Agreement in its entirety pursuant to the terms of
this Agreement and thereby continue the Executive’s employment with the Company,
upon the terms and conditions set forth herein.

 

NOW, THEREFORE, in consideration of the mutual
premises contained herein and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree to amend and restate the Original Agreement in its entirety as follows:

 

1.              Employment.
The Executive’s employment with the Company will continue following the
Effective Date, upon the terms and conditions herein set forth.

 

2.              Employment
Period. The terms and conditions of employment under this Agreement shall
commence on the Effective Date hereof and continue for a period ending on June 30,
2008, subject to earlier termination as provided herein (as extended pursuant
to the terms hereof, the “Employment Period”). In the event that the
Executive continues to be employed by the Company following the termination of
the Agreement, such employment shall be governed by this Agreement, except that
it will be “at-will,” without a fixed term, and may be terminated by the
Company or the Executive at any time, with or without notice, for any reason or
no reason (and no reason need be given), and without any further obligations of
the Company beyond that owed for periods that the Executive was actually
employed by the Company.

 

3.              Position
and Duties. The Executive hereby agrees to serve as the Chairman and Chief
Executive Officer of the Company, and shall have those duties, responsibilities
and authority customarily accorded a person holding such a position in a company
such as the Company. In such capacity the Executive shall report to the Board
of Directors of the Company (the “Board”). The Executive shall devote
his best efforts and attention to the performance of services to the Company in
accordance with the terms hereof and as may reasonably be requested by the
Company. The Company acknowledges that the Executive shall continue to pursue
his several external obligations during the term of this Agreement.

 

 

4.              Compensation
and Other Terms of Employment. In consideration of the performance of his
duties for the Company, the Executive shall be entitled to receive the
following:

 

(a)                                 Base
Salary. During the Employment Period (and thereafter to the extent that the
Executive continues to be employed by the Company), the Executive shall be
entitled to receive an annual salary equal to Six Hundred Thousand Dollars ($600,000)
per year (the “Base Salary”). The Base Salary shall be payable in
accordance with the Company’s regular payroll practices (e.g., timing of
payments and standard employee deductions such as income and employment
withholding taxes).

 

(b)                                 Bonus.
During the Employment Period (and thereafter to the extent that the Executive
continues to be employed by the Company) and at the discretion of the
Compensation Committee of the Board (the “Comp Committee”), the
Executive shall be eligible to participate in and earn annual bonus
compensation under the Company’s Executive Bonus Plan (the “Bonus Plan”)
of up to one hundred sixty five percent (165%) of his Base Salary, subject to
satisfaction of performance criteria established by the Comp Committee under
the terms of the Bonus Plan in consultation with the Executive for each relevant
fiscal year that the Executive is employed hereunder.

 

(c)                                  Restricted
Stock. As of the Effective Date, Executive shall be granted and the Company
shall issue to the Executive under the Reliant Pharmaceuticals, Inc. 2004 Equity
Incentive Plan (the “Plan”), Four Hundred Twenty Five Thousand (425,000)
shares of restricted common stock of the Company (the “Section 4(c) Restricted
Shares”). The Section 4(c) Restricted Shares shall be issued pursuant and
subject to the terms of a restricted stock agreement between the Company and
the Executive substantially in the form of Exhibit A attached hereto
(the “Restricted Stock Agreement”), which agreement shall provide, among
other things, that the Executive shall vest in one-third of the Section 4(c) Restricted
Shares on each anniversary of the Effective Date, over a period of three (3)
years.

 

(d)                                 2008
Share Grant. In the event that a Liquidity Event (as defined below) has not
occurred before June 30, 2008 and either (i) Executive is employed by the
Company on June 30, 2008, or (ii) Executive’s employment has been terminated by
the Company without Cause (as defined below) or by Executive for Good Reason
(as defined below), then with effect as of  July 1, 2008 the Company shall grant and issue
to the Executive under the Plan or any subsequent equity incentive plan of the
Company adopted in replacement thereof, Three Hundred Thirty Three Thousand
(333,000) shares of restricted common stock of the Company (the “Section
4(d) Shares”), which shares shall be fully vested and transferable upon
grant, subject only to any stockholders agreement which may be effective
between the Company and the Executive.

 

(e)                                  Options.
As of the Effective Date, the Company shall grant to the Executive options to
purchase Two Hundred Thousand (200,000) shares of common stock of the Company,
at an exercise price of Twenty Dollars ($20.00) per share (the “Section 4(e)Options”).
The Section 4(e) Options shall be evidenced by and subject to the terms of an
option agreement between the Company and the Executive substantially in the
form of Exhibit B attached hereto (the “Option Agreement”).

 

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(f)                                   Liquidity
Event Bonus.

 

(i)                                     In
the event of a transaction during the Employment Period resulting in a Change
of Control (as defined below) of the Company (a “Liquidity Event”), the
Executive shall be entitled to a bonus equal to 1.0% of the Net Proceeds (as
defined below) actually received by the stockholders of the Company in
connection with such Liquidity Event with respect to their capital stock in the
Company (the “Liquidity Event Bonus”). The Liquidity Event Bonus will be
paid in the same consideration as, and to the extent (if the transaction is a
mix of cash and other consideration) received by the holders of shares of
common stock of the Company. The Liquidity Event Bonus shall be in addition to
any rights that Employee shall have by reason of the Liquidity Event with
respect to any equity ownership or other rights to equity ownership he may hold
in the Company. For the purposes of this Agreement, “Net Proceeds” means
the total value of all consideration actually received by the stockholders of
the Company with respect to a Liquidity Event, less investment banking fees and
other transaction costs incurred by the Company in connection with the
Liquidity Event. In the event that any of the consideration received by the stockholders
of the Company is paid into escrow or is a contingent payment, the Executive
shall be paid his Liquidity Event Bonus in respect of such escrowed or
contingent payments at the time that such payments are received by the other stockholders
(or former stockholders) of the Company; provided, however, that payment of the
Liquidity Event Bonus may be structured to be paid at a time different than the
stockholders to the extent necessary to avoid adverse treatment of such payments
under Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”).

 

(ii)                                  For
the purposes of this Section 4(f), “Change of Control” means
(i) the sale, lease exchange license or other disposition of all or
substantially all of the Company’s assets in one transaction or a series of
related transactions, (ii) a merger or consolidation as a result of which the
holders of Company’s issued and outstanding voting securities immediately
before such transaction own or control less than a majority of the voting
securities of the continuing or surviving entity immediately after such
transaction and/or (iii) the acquisition (in one or more transactions) by
any person or persons acting together or constituting a “group” under Section
13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”),
together with any affiliates thereof (other than stockholders of the Company as
of the date hereof and their respective affiliates) of beneficial ownership (as
defined in Rule 13d-3 under such Exchange Act) or control, directly or
indirectly, of at least eighty percent (80%) of the total voting power of all
classes of securities entitled to vote generally in the election of the Company’s
board of directors; provided that for the purposes of the immediately preceding
clause (iii) neither a public offering of Company’s securities nor any
financing transaction or series of financing transactions shall constitute a
Change of Control.

 

(iii)                               In the event that any
portion of the Liquidity Event Bonus constitutes an “excess parachute payment”
within the meaning of Sections 280G and 4999 of the Code (such amount being the
“Excess Parachute Payment”), then the Company shall pay the Executive an
additional amount equal to twenty (20%) of the amount of such Excess Parachute
Payment.

 

3

 

(g)                                  Aircraft.
The Company owns a 3/16ths NetJets fractional ownership interest in a Citation
Excel aircraft, tail number N668QS (such interest, the “Aircraft”). The
Aircraft shall be available to the Executive for business and personal use;
provided, however, that the Executive shall be imputed income for all personal
usage of the Aircraft pursuant to Section 132 of the Internal Revenue Code.

 

(h)                                 Housing.
The Company will provide, at the Company’s cost, an apartment for the Executive’s
use reasonably close to the Company’s corporate headquarters in Liberty Corner,
New Jersey. All taxes, utilities and maintenance/repair obligations related to
the apartment shall be borne by the Company.

 

(i)                                     Transportation/Automobile.
The Company shall provide the Executive, at the Company’s expense, with the use
of a car service for business-related transportation. A vehicle from the
Company’s fleet of PSR vehicles will be available for Executive’s use.

 

(j)                                    Business
Expenses. The Executive shall be entitled to receive reimbursement in
accordance with the policies and procedures of the Company maintained from time
to time for all reasonable documented business expenses incurred in the
performance of his duties for the Company. In addition, the Executive shall be
entitled to a one time reimbursement of reasonable fees and expenses of legal
counsel incurred by the Executive in connection with the negotiation of this
Agreement.

 

(k)                                 Vacation.
The Executive shall be entitled to vacation during each year of the Employment
Period in accordance with the Company’s policies in effect from time to time
applicable to other members of the Company’ senior management.

 

(l)                                     Benefits.
Except as specifically provided herein or oh Exhibit C attached hereto,
the Executive shall not participate in the Company’s employment benefit plans,
including but not limited to the Section 401(k) retirement plan, health,
dental, life insurance, and long term disability plans or any bonus or other
incentive plans.

 

(m)                             No
Additional Compensation. Except as otherwise specifically provided in this Section
4 or as determined in the discretion of the Compensation Committee of the
Board, the Executive shall not be entitled to any other compensation, salary or
bonuses for services as an employee of the Company.

 

5.              Termination
and Consequences.

 

(a)                                 The
Executive’s Rights to Terminate. Notwithstanding any other provision of
this Agreement to the contrary, the Executive may terminate this Agreement at
any time, on at least 30 days’ prior written notice to the Company for any
reason.

 

(b)                                 The
Company’s Right to Terminate. Notwithstanding any other provision of this
Agreement to the contrary, the Company may terminate this Agreement at any time
during the term hereof with or without Cause; provided that the Company shall
give Executive at least 30 days’ prior written notice prior to termination
without Cause.

 

4

 

(c)                                  Consequences
of Termination without Cause or for Good Reason. If the Company terminates
this Agreement without Cause or if the Executive terminates this Agreement with
Good Reason, the Executive and the Company shall have the following rights and
obligations:

 

(i)                                     Notwithstanding
anything in the Plan or in the applicable option or restricted stock agreements
to the contrary, the Executive shall become fully vested in all of the Section
4(c) Restricted Shares and the Section 4(e) Options;

 

(ii)                                  if
such termination occurs prior to a Liquidity Event, the Company shall pay the
Executive the Liquidity Event Bonus; provided, that the Executive would have
otherwise been entitled to such Liquidity Event Bonus pursuant to Section 4(f)
but for the termination of his employment as described in this Section 5(c);

 

(iii)                               if the conditions of Section
4(d) are met, then on June 30, 2008, the Company shall grant the Executive
the Section 4(d) Shares; and

 

(iv)                              the
Executive shall be entitled to any Base Salary accrued but unpaid through the
date of termination.

 

Upon termination of employment, the Executive shall
have no further rights to receive additional grants of options, restricted
shares or any other benefits or compensation set forth in Section 4. Following
such termination of Executive’s employment, the Company shall have no further
obligations to the Executive under the terms of this Agreement.

 

(d)                                 Consequences
of Termination With Cause or Without Good Reason. If the Company terminates
this Agreement with Cause or the Executive terminates this Agreement without
Good Reason:

 

(i)                                     the
Executive shall forfeit all rights to the Section 4(c) Restricted Shares and
the Section 4(e) Options, to the extent not vested;

 

(ii)                                  all
Restricted Shares and Options, in each case to the extent vested, shall be
subject to the terms of the Plan and the Restricted Share Agreement and Option Agreement;

 

(iii)                               the Executive shall be
entitled to any Base Salary accrued but unpaid through the date of termination;

 

(iv)                              the
Executive shall have no further rights to any other benefits or compensation
set forth in Section 4; and

 

(v)                                 the
Company shall have no further obligations to the Executive under this
Agreement.

 

(e)                                  Definition
of Good Reason. “Good Reason” means (i) a material reduction of
Executive’s duties and responsibilities from those in effect immediately prior
to the reduction;

 

5

 

provided, however, that a reduction in title or
responsibilities from “Chairman and Chief Executive Officer” to “Chairman” will
not constitute Good Reason, or (ii) material breach by the Company of any
provision of this Agreement after receipt of written notice thereof from the
Executive and failure by the Company to cure the breach within thirty (30) days
thereafter.

 

(f)                                   Definition
of Cause. “Cause” means the Executive’s (i) conviction of or a plea
of guilty or nolo contendere to a felony or a
crime involving moral turpitude which in the judgment of the Board causes or
will likely cause substantial economic damage to the Company or substantial
injury to the business reputation of the Company, (ii) commission of acts of
fraud, misappropriation, embezzlement, theft, dishonesty or breach of the duty
of loyalty in performance of the Executive’s duties on behalf of the Company
and (iii) failure lasting at least 30 consecutive calendar days to discharge
his duties under this Agreement due to gross negligence. The foregoing
notwithstanding, the Company shall provide the Executive prior written notice
of its intent to terminate the Executive for Cause pursuant to Section
5(f)(iii) if the Executive fails to commence to cure such alleged failure
to discharge his duties within thirty (30) days of such written notice.

 

6.              Records
and Confidential Data.

 

(a)                                 Acknowledgement.
The Executive acknowledges that in connection with the performance of his
duties during the term of his employment the Company will make available to the
Executive, or the Executive will have access to, certain Confidential
Information (as defined below) of the Company and its affiliates.

 

(b)                                 Confidentiality
Obligations. During the term of his employment and thereafter Executive
shall keep all Confidential Information confidential and will not use such
Confidential Information other than in connection with the Executive’s
discharge of his duties hereunder, and will be safeguarded by the Executive
from unauthorized disclosure. This covenant is not intended to, and does not
limit in any way Executive’s duties and obligations to the Company under
statutory and common law not to disclose or make personal use of the
Confidential Information or trade secrets.

 

(c)                                  Return
of Confidential Information. Following the Executive’s termination of
employment, as soon as possible after the Company’s written request, the
Executive will return to the Company all written Confidential Information which
has been provided to the Executive and the Executive will destroy all copies of
any analyses, compilations, studies or other documents prepared by the
Executive or for the Executive’s use containing or reflecting any Confidential
Information. Within ten (10) business days of the receipt of such request by
the Executive, the Executive shall, upon written request of the Company,
deliver to the Company a notarized document certifying that such written
Confidential Information has been returned or destroyed in accordance with this
Section 6(c).

 

(d)                                 Definition.
For the purposes of this Agreement, “Confidential Information” shall
mean all confidential and proprietary information of the Company, and its
affiliates, including, without limitation, the Company’s marketing strategies,
pricing policies or characteristics, customers and customer information,
product or product specifications, designs, software

 

6

 

systems, leasing costs, cost of equipment, customer
lists, business or business prospects, plans, proposals, codes, marketing
studies, research, reports, investigations, or other information of similar
character. For purposes of this Agreement, the Confidential Information shall
not include and the Executive’s obligations under this Section 6 shall
not extend to (i) information which is generally available to the public, (ii)
information obtained by the Executive from third persons other than Executives
of the Company, its subsidiaries, the Company and the Company’s affiliates not
under agreement to maintain the confidentiality of the same and (iii)
information which is required to be disclosed by law or legal process.

 

(e)                                  Construction.
Any reference to the Company in this Section 6 shall include the Company
and/or its subsidiaries.

 

7.              Additional
Covenants.

 

(a)                                 Non-Competition.
Except for such matters and activities approved by the Board in writing, the
Executive covenants and agrees that (i) during his employment and (ii) for
a period of six (6) months following the termination of his employment by the
Company, the Executive shall not serve as a President, Chief Executive Officer
and/or Executive Chairman in any corporation, partnership, proprietorship,
firm, association, person, or other entity that engages in any business,
activity or service whose principle business is the discovery, development,
manufacture and sales of prescription pharmaceuticals (a “Company Activity”).
This Covenant (as defined below) applies to Company Activities in any territory
or jurisdiction in which the Company is doing business or is making an active
effort to do business during the term of the Executive’s employment and with
respect to the Executive’s Covenant regarding the six (6) month period after
the termination of the Employment Period. This Covenant does not prohibit the
mere passive ownership of less than five percent (5%) of the outstanding stock
of any public corporation as long as the Executive is not otherwise in
violation of this Covenant.

 

(b)                                 No
Diversion. During the Employment Period, the Executive covenants and agrees
that the Executive shall not divert or attempt to divert or take advantage of
or attempt to take advantage of any actual or potential business opportunities
of the Company (e.g., joint ventures, other business combinations, investment
opportunities, potential investors in the Company, and other similar
opportunities) which the Executive became aware of as the result of his
employment with the Company.

 

(c)                                  Non-Recruitment.
The Executive agrees that the Company has invested substantial time and effort
in assembling its present workforce. Accordingly, the Executive covenants and
agrees that during his employment and for a period of six (6) months following
the termination of the Employment Period, the Executive shall not directly or
indirectly entice or solicit or seek to induce or influence any of the Company’s
executives to leave their employment.

 

(d)                                 Remedies.
The Executive acknowledges that should he violate any of the covenants
contained in Sections 6, and 7(a), (b), and (c)
above (collectively “Covenants”), it will be difficult to determine the
resulting damages to the Company and, in addition to any other remedies it may
have, the Company shall be entitled to temporary injunctive relief without
being

 

7

 

required to post a bond and permanent injunctive
relief without the necessity of proving actual damage. The Company may elect to
seek one or more of these remedies at its sole discretion on a case by case
basis. Failure to seek any or all remedies in one case does not restrict the
Company from seeking any remedies in another situation. Such action by the
Company shall not constitute a waiver of any of its rights.

 

(e)                                  Severability
and Modification of Any Unenforceable Covenant. It is the parties’ intent
that each of the Covenants be read and interpreted with every reasonable
inference given to its enforceability. However, it is also the parties’ intent
that if any term, provision or condition of the Covenants is held to be
invalid, void or unenforceable, the remainder of the provisions thereof shall
remain in full force and effect and shall in no way be affected, impaired or
invalidated. Finally, it is also the parties’ intent that if it is determined that
any of the Covenants are unenforceable because of overbreadth, then the
Covenants shall be modified so as to make it reasonable and enforceable under
the prevailing circumstances.

 

(f)                                   Litigation.
The Executive agrees to render assistance and cooperation to the Company at its
request regarding any matter, dispute or controversy with which the Company may
become involved and of which the Executive has or may have reason to have
knowledge, information or expertise. Such services will be without additional
compensation if the Executive is then employed by the Company and for
reasonable compensation and subject to his reasonable availability if he is
not.

 

(g)                                  Construction.
Any reference to the Company in this Section 7 shall include the
Company and/or its subsidiaries.

 

8.              No
Assignment. This Agreement shall not be assigned, delegated, transferred,
pledged or sold by either the Executive or the Company without the prior
written consent of the other party.

 

9.              Miscellaneous
Provisions.

 

(a)                                 Payment
of Taxes. Any payments otherwise due under this Agreement to the Executive
shall either be (i) reduced by the minimum required withholdings for federal,
state, local and/or employment taxes, or (ii) the Executive shall deliver to the
Company in cash the amount necessary for the Company to satisfy its required
tax withholding obligations.

 

(b)                                 Notices.
All notices, offers or other communications required or permitted to be given
pursuant to this Agreement shall be in writing and shall be considered as
properly given or made (i) if delivered personally or (ii) after the expiration
of five days from the date upon which such notice was mailed from within the
United States by certified mail, return receipt requested, postage prepaid, (iii)
upon receipt by prepaid telegram or facsimile transmission (with written
confirmation of receipt) or (iv) after the expiration of the second business
day following deposit with documented overnight delivery service. All notices
given or made pursuant hereto shall be so given or made to the following
addresses:

 

8

 

	
  if to the
  Executive:

  	
  Ernest Mario, Ph.D.

  
	
   

  	
  20 Greenhouse Drive

  
	
   

  	
  Princeton, NJ 08540

  
	
   

  	
  Facsimile: (609)
  924-7641

  
	
   

  	
   

  	
   

  	
   

  
	
  with
  copy to:

  	
  Coblentz, Patch, Duffy
  & Bass

  
	
   

  	
  222 Kearny Street, 7th
  Floor

  
	
   

  	
  San Francisco, CA 94108

  
	
   

  	
  Attention:

  
	
   

  	
  Facsimile: (415)
  989-1663

  
	
   

  	
   

  
	
  if to the
  Company:

  	
  Reliant
  Pharmaceuticals, Inc.

  
	
   

  	
  110 Allen Road

  
	
   

  	
  Liberty Corner, New
  Jersey 07938

  
	
   

  	
  Attention: Chief
  Financial Officer

  
	
   

  	
  Facsimile: (908)
  542-9406

  
	
   

  	
   

  
	
  with
  copy to:

  	
  Latham & Watkins
  LLP

  
	
   

  	
  5800 Sears Tower

  
	
   

  	
  Chicago, Illinois 60606

  
	
   

  	
  Attention: Michael A.
  Pucker

  
	
   

  	
  Facsimile: (312)
  993-9767

  

 

(c)                                  Severability.
If any provision of this Agreement is held by a court of competent jurisdiction
to be invalid, illegal or unenforceable, such provision shall be severed and
enforced to the extent possible or modified in such a way as to make it
enforceable, and the invalidity, illegality or unenforceability thereof shall
not affect the validity, legality or enforceability of the remaining provisions
of this Agreement.

 

(d)                                 Governing
Law. This Agreement shall be governed by and construed in accordance with
the laws of the State of New Jersey applicable to contracts executed in and to
be performed entirely within that state. The parties irrevocably agree that all
actions to enforce an arbitrator’s decision pursuant to Section 9(k)
of this Agreement shall be instituted and litigated only in federal, state or
local courts sitting in Newark, New Jersey and each of such parties hereby
consents to the exclusive jurisdiction and venue of such court and waives any
objection based on forum non conveniens.

 

(e)                                  WAIVER OF JURY TRIAL. THE PARTIES
HEREBY WAIVE, RELEASE AND RELINQUISH ANY AND ALL RIGHTS THEY MAY HAVE TO A
TRIAL BY JURY WITH RESPECT TO ANY ACTIONS TO ENFORCE AN ARBITRATOR’S DECISION
PURSUANT TO SECTION 9(k) OF THIS AGREEMENT.

 

(f)                                   Counterparts.
This Agreement may be executed in counterparts, each of which shall be an
original, but all of which shall constitute one and the same instrument.

 

9

 

(g)                                  Entire
Understanding. This Agreement including the Plan, all Exhibits and Recitals
hereto which are incorporated herein by this reference, together with the other
agreements and documents being executed and delivered concurrently herewith by
the Executive and the Company, constitute the entire understanding among all of
the parties hereto and supersedes any prior understandings and agreements,
written or oral, among them respecting the subject matter within, including,
without limitation, the Original Agreement. The foregoing notwithstanding, the
agreements documenting the equity and equity linked securities executed
pursuant to the Original Agreement shall remain in full force and effect in
accordance with their terms.

 

(h)                                 Pronouns
and Headings. As used herein, all pronouns shall include the masculine,
feminine, neuter, singular and plural thereof wherever the context and facts
require such construction. The headings, titles and subtitles herein are
inserted for convenience of reference only and are to be ignored in any
construction of the provisions hereof.

 

(i)                                     Amendments.
Except as set forth in Sections 7(e) and/or 9(c) above, this
Agreement shall not be changed or amended unless in writing and signed by both
the Executive and the Company.

 

(j)                                    The
Executive’s Acknowledgement. The Executive acknowledges (i) that he has
consulted with or has had the opportunity to consult with independent counsel
of his own choice concerning this Agreement and has been advised to do so by
the Company, and (ii) that he has read and understands this Agreement, is fully
aware of its legal effect, and has entered into it freely based on his own
judgment.

 

(k)                                 Arbitration.
Except as provided in Section 9(e) hereof, in the event that there
shall be a dispute among the parties arising out of or relating to this
Agreement, or the breach thereof, the parties agree that such dispute shall be
resolved by final and binding arbitration in Newark, New Jersey, administered
by the American Arbitration Association (the “AAA”), in accordance with
AAA’s Commercial Arbitration Rules, to which shall be added the provisions of
the Federal Rules of Civil Procedure relating to the Production of Evidence,
and the parties agree that the arbitrators may impose sanctions in their
discretion to enforce compliance with discovery and other obligations. Such
arbitration shall be presided over by a single arbitrator. If the Executive, on
the one hand, and the Company, on the other hand, do not agree on the
arbitrator within fifteen (15) days after a party requests arbitration, the
arbitrator shall be selected by the Executive and the Company from a list of
five (5) potential arbitrators provided by AAA. Such list shall be provided
within ten (10) days of the request of any party for arbitration. The party
requesting arbitration shall delete one name from the list. The other party
shall delete one name from the list. This process shall then be repeated in the
same order, and the last remaining person on the list shall be the arbitrator. This
selection process shall take place within the two (2) business days following
both parties’ receipt of the list of five (5) potential arbitrators. Hearings
in the arbitration proceedings shall commence within twenty (20) days of the
selection of the arbitrator or as soon thereafter as the arbitrator is
available. The arbitrator shall deliver his or her opinion within twenty (20)
days after the completion of the arbitration hearings. The arbitrator’s
decision shall be final and binding upon the parties, and may be entered and
enforced

 

10

 

in any court of competent jurisdiction by either of
the parties. The arbitrator shall have the power to grant temporary,
preliminary and permanent relief, including without limitation, injunctive
relief and specific performance. Unless otherwise ordered by the arbitrator
pursuant to this Agreement, the arbitrator’s fees and expenses shall be shared
equally by the parties.

 

(l)                                     Attorney’s
Fees. If any arbitration is brought under Section 9(k), the
arbitrator may award the successful or prevailing party reasonable attorneys’
fees and other costs incurred in that action or proceeding, in addition to any
other relief to which it may be entitled. If any other proceeding is brought by
one party against the other in connection with or relating in any manner to
this Agreement, or to enforce an arbitration award, the successful or
prevailing party (as determined by an independent third party, e.g. a judge)
shall be entitled to recover its reasonable attorneys’ fees and other costs
incurred in that action or proceeding, in addition to any other relief to which
it may be entitled.

 

(m)                             Survival.
Sections 6, 7, and 9 (as well as any provisions of this
Agreement necessary to give effect thereto) shall survive the termination of
this Agreement.

 

[Signature
page follows]

 

11

 

IN WITNESS WHEREOF, this Agreement has been executed
as of the date and year first above written.

 

	
   

  	
  THE COMPANY:

  
	
   

  	
   

  
	
   

  	
  RELIANT PHARMACEUTICALS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THE EXECUTIVE:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Ernest Mario

  

 

 

[SIGNATURE PAGE TO
ERNEST MARIO A/R EMPLOYMENT AGREEMENT]

 

12

 

EXHIBIT A

 

RESTRICTED
SHARE AGREEMENT

 

13

 

EXHIBIT B

OPTION AGREEMENT

 

14

 

EXHIBIT C

BENEFITS

 

Workers Compensation

 

Life Insurance consistent
with policy in place on July 1, 2005

 

15

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