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                                                                    EXHIBIT 10.4

                    2005 EXECUTIVE MANAGEMENT INCENTIVE AWARD
   Adopted by the Compensation and Human Resource Committee on March 15, 2005.

The 2005 Executive Management Incentive Award ("EMIA") will be comprised of 1 to
2 Corporate financial objectives and approximately 4 individual operational
objectives for each executive. The Compensation and Human Resources Committee of
the Board of Directors approves threshold, target, and stretch goals for the 2
financial objectives. Threshold, target, and stretch goals for each individual
operational objective are submitted by each executive and approved by the CEO or
appropriate department head by March 31, 2005. Any adjustments to any of the
financial or operational objectives are at the discretion of the Compensation
and Human Resources Committee.

                              FINANCIAL OBJECTIVES

FINANCIAL OBJECTIVE 1- REVENUES: The portion of the EMIA payable pursuant to
Financial Objective 1 will be based on achieving established revenue targets.

FINANCIAL OBJECTIVE 2- EARNINGS PER SHARE: The portion of the EMIA payable
pursuant to Financial Objective 2 will be based on achieving established EPS
targets.

The percentage weighting to be determined for each financial objective will be
based on the executive's ability to impact the accomplishment of said objective.

                             OPERATIONAL OBJECTIVES

OPERATIONAL OBJECTIVES: Each executive will own approximately 4 key operational
objectives with the percentage weighting of each based on the importance of that
objective to the success of the business.

                AWARD PAYOUT SCHEDULE, CALCULATION & ELIGIBILITY

                                                 L E V E L
--------------------------------------------------------------------------------
              POSITION              THRESHOLD     TARGET      STRETCH
--------------------------------------------------------------------------------
CEO                                    45%         90%          180%
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President                              30%         60%          120%
--------------------------------------------------------------------------------
Chief Financial Officer                30%         60%          120%
--------------------------------------------------------------------------------
Chief Operating Officer                30%         60%          120%
--------------------------------------------------------------------------------
General Counsel                        25%         50%          100%
--------------------------------------------------------------------------------
Corporate Head (EVP Level 1)           25%         50%          100%
--------------------------------------------------------------------------------
EVP Level 2                            20%         40%           80%
--------------------------------------------------------------------------------

o    The EMIA is calculated on Executive's 2005 base pay. BOTH FINANCIAL
     OBJECTIVES AND ALL OPERATIONAL OBJECTIVES ARE WEIGHTED AS STAND-ALONE
     OBJECTIVES FOR EACH EXECUTIVE. THE AWARD FOR EACH OBJECTIVE IS CALCULATED
     BY TAKING EACH STAND-ALONE OBJECTIVE'S WEIGHTED PERCENTAGE AND MULTIPLYING
     BY THE APPROPRIATE PERFORMANCE THRESHOLD, TARGET, OR STRETCH PAYOUT

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     PERCENTAGE FROM THE ABOVE TABLE. THE TOTAL AWARD IS THEN THE SUM OF ALL
     OBJECTIVES TIMES THEIR RESPECTIVE PERFORMANCE PAYOUT PERCENTAGES. SEE
     ATTACHED EXAMPLE.

o    The time period for the measurement of performance of all objectives is
     January 1 through December 31, 2005.

o    The award payment will be made on or before March 15, 2006.

o    Weighted payment percentages for financial objective 1-revenues between
     levels will be prorated according to the dollar amount of revenues. Any
     weighted percentage in excess of Target percentage is to be paid only if
     the threshold level for the EPS target is achieved.

o    Weighted payment percentages for financial objective 2-EPS between
     levels will be prorated according to the dollar amount of EPS.

o    The award for any eligible executive who is promoted on or before
     September 30 will be prorated based on portion of the year spent in each
     position.

o    Any executive hired between April 1 and June 30 will be eligible for
     75% of the annual award based upon the 1 to 2 Corporate financial
     objectives and 2 individual operational objectives for the time period
     between date of hire and December 31, 2005.

o    Any executive hired between July 1 and September 30 will be eligible
     for 50% of the annual award. The award will be based on both the financial
     objective 1-revenues and financial objective 2-EPS.

o    Any executive hired after September 30 is ineligible for the EMIA.

o    Any executive who voluntarily terminates or is involuntarily terminated is
     ineligible for the EMIA.

o    The award for any eligible executive who retires will be prorated based on
     portion of the year spent in position.

                            EMIA CALCULATION EXAMPLE

                                                           PAYOUT      OBJECTIVE
                OBJECTIVE         WEIGHT   PERFORMANCE   PERCENTAGE     PAYOUT
   -----------------------------------------------------------------------------

   -----------------------------------------------------------------------------

   Financial 1 - Revenues          10%      Threshold        20%       .02 (2%)
   -----------------------------------------------------------------------------
   Financial 2 - EPS               30%        Target         40%       .12 (12%)
   -----------------------------------------------------------------------------
   Operational Objective 1         20%       Stretch         80%       .16 (16%)
   -----------------------------------------------------------------------------
   Operational Objective 2         15%        Target         40%       .06 (6%)
   -----------------------------------------------------------------------------
   Operational Objective 3         15%        Target         40%       .06 (6%)
   -----------------------------------------------------------------------------
   Operational Objective 4         10%      Threshold        20%       .02 (2%)
   -----------------------------------------------------------------------------
       Total Objectives Weight     100%                              ___________
   ---------------------------------- -------- ------------- ----------- -------
       Total EMIA Payout                                               .44 (44%)
   ---------------------------------- -------- ------------- ----------- -------

The Executive receives 44% of his/her base pay as the EMIA.<PAGE>
                                                                    EXHIBIT 10.6

                               COMPENSATION POLICY
            FOR NON-EMPLOYEE DIRECTORS OF KING PHARMACEUTICALS, INC.

                    AS APPROVED BY THE BOARD OF DIRECTORS ON
                 FEBRUARY 13, 2004 AND AMENDED ON JULY 22, 2005

Retainer*                                                      $30,000 annually
Board Meeting Fees                                           $1,500 per meeting
Committee Meeting Fees (Same Day as Board                      $750 per meeting
Meeting)
Committee Meeting Fees (Different Day from Board             $1,200 per meeting
Meeting)
Other hourly fee                                                $250 per hour**
Non-Executive Chairman of the Board Retainer                  $150,000 annually
Audit Chair Retainer*                                          $10,000 annually
Other Chair Retainer*                                           $5,000 annually
Committee Member Retainer*                                      $4,000 annually
Continuing Education Fees                                   Up to $2000 per day
                                                        (up to 3 days per year)
Personal use of corporate aircraft                      10 hours of flight time
                                                                    annually***
Annual Grant of Options                            Options for 10,000 shares of
                                                               common stock****

Compensation to be received by each director pursuant to this policy may be
deferred in accordance with the King Pharmaceuticals, Inc. Non-Employee
Directors' Deferred Compensation Plan.

*      Fees are to be paid at the end of each quarter for service during that
       quarter. Fees for service during part of a quarter will be pro rated.

**     For extraordinary Board-related service for which compensation is not
       otherwise received. Each payment related thereto must be approved in
       writing by the Compensation and Human Resources Committee upon receipt of
       documentation of time spent.

***(1) Flight time will accrue only while the director is on board.
   (2) 10 hours are available per calendar year and do not accumulate from one
       year to the next.
   (3) Use is limited to flights for which the primary purpose relates to King's
       business. The flight shall not be for purely personal purposes.
   (4) Usage will be treated as compensation to the director as may be required
       by the Internal Revenue Code.
   (5) Reports of aircraft usage by non-employee directors will be provided not
       less than annually to the Compensation and Human Resources Committee.

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**** Awarded once annually through the 1998 Non-Employee Director Stock Option
          Plan for option grants made through May 31, 2005 and thereafter
          through the Incentive Plan. By resolution of the Board dated July 24,
          2003, options for 10,000 shares of King's common stock is
          automatically granted to each non-employee director on April 30 of
          each year, beginning on April 30, 2004, or if April 30 falls on a
          weekend or holiday, on the first business day immediately preceding
          April 30. Options so granted become exercisable in full one year
          following the date of grant. Upon becoming a director (other than
          through re-election), the director shall automatically be awarded,
          upon the first day of service as a director, options for such portion
          of 10,000 option shares equivalent to the fraction of a year between
          the first date of service and the first April 30 thereafter.

NOTES TO SCHEDULE OF COMPENSATION FOR NON-MANAGEMENT DIRECTORS:

The Board of Directors determined, on March 11, 2004 that the only compensation
to be paid for participation in executive sessions of the non-management
directors shall be a fee of $1,200 for attending an executive session of the
non-management directors which is held on a day on which a Board meeting is not
held. Annual retainers shall not be paid to non-management directors for
participation in executive sessions of non-management directors.

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