Document:

K-V Pharmaceutical Company Fifth Restated Profit Sharing Plan & Trust Agreement

 Exhibit 10.4 
 SUMMARY PLAN DESCRIPTION 

KV Pharmaceutical Retirement Savings Plan 

 KV Pharmaceutical Retirement Savings Plan 

 

															
	SUMMARY PLAN DESCRIPTION	  	 	1	  	  	
					
	 I.
	 		 	 	BASIC PLAN INFORMATION	  	 	2	  	  	
						
		 	 A.
	 				 	ACCOUNT	  	 	2	  	  	
		 	 B.
	 				 	BENEFICIARY	  	 	2	  	  	
		 	 C.
	 				 	DEFERRAL CONTRIBUTION	  	 	2	  	  	
		 	 D.
	 				 	EMPLOYEE	  	 	2	  	  	
		 	 E.
	 				 	EMPLOYER	  	 	2	  	  	
		 	 F.
	 				 	ERISA	  	 	2	  	  	
		 	 G.
	 				 	HIGHLY COMPENSATED EMPLOYEE	  	 	2	  	  	
		 	 H.
	 				 	NON-HIGHLY COMPENSATED EMPLOYEE	  	 	3	  	  	
		 	 I.
	 				 	PARTICIPANT	  	 	3	  	  	
		 	 J.
	 				 	PLAN TYPE	  	 	3	  	  	
		 	 K.
	 				 	PLAN ADMINISTRATOR	  	 	3	  	  	
		 	 L.
	 				 	PLAN NUMBER	  	 	3	  	  	
		 	 M.
	 				 	PLAN SPONSOR	  	 	3	  	  	
		 	 N.
	 				 	PLAN YEAR	  	 	3	  	  	
		 	 O.
	 				 	SERVICE OF PROCESS	  	 	3	  	  	
		 	 P.
	 				 	TRUSTEE	  	 	3	  	  	
					
	 II.
	 		 	 	PARTICIPATION	  	 	3	  	  	
						
		 	 A.
	 				 	ELIGIBILITY REQUIREMENTS	  	 	3	  	  	
					
	 III.
	 		 	 	CONTRIBUTIONS	  	 	4	  	  	
						
		 	 A.
	 				 	COMPENSATION	  	 	4	  	  	
		 	 B.
	 				 	EMPLOYEE DEFERRAL CONTRIBUTIONS	  	 	5	  	  	
		 		 	 	1.	  	 	 Regular Deferral Contributions
	  	 	5	  	  	
		 		 	 	2.	  	 	 Age 50 and Over Catch-Up Contributions
	  	 	5	  	  	
		 	 C.
	 				 	EMPLOYER MATCHING CONTRIBUTIONS	  	 	5	  	  	
		 		 	 	1.	  	 	 Non-discretionary Matching Contributions
	  	 	5	  	  	
		 		 	 	2.	  	 	 Qualified Matching Contributions
	  	 	5	  	  	
		 	 D.
	 				 	NONELECTIVE CONTRIBUTIONS	  	 	6	  	  	
		 		 	 	1.	  	 	 Discretionary Nonelective Contributions
	  	 	6	  	  	
		 	 E.
	 				 	QUALIFIED NONELECTIVE CONTRIBUTIONS	  	 	6	  	  	
		 	 F.
	 				 	LIMIT ON CONTRIBUTIONS	  	 	6	  	  	
		 	 G.
	 				 	ROLLOVER CONTRIBUTIONS	  	 	6	  	  	
					
	 IV.
	 		 	 	INVESTMENTS	  	 	7	  	  	
						
		 	 A.
	 				 	INVESTMENTS	  	 	7	  	  	
		 	 B.
	 				 	STATEMENT OF ACCOUNT	  	 	7	  	  	
		 	 C.
	 				 	ELECTION	  	 	8	  	  	
					
	 V.
	 		 	 	VESTING	  	 	8	  	  	
						
		 	 A.
	 				 	FORFEITURE AND RE-EMPLOYMENT	  	 	10	  	  	
					
	 VI.
	 		 	 	PARTICIPANT LOANS	  	 	11	  	  	
						
		 	 A.
	 				 	GENERAL LOAN RULES	  	 	11	  	  	
		 	 B.
	 				 	SPECIFIC LOAN PROCEDURES	  	 	11	  	  	
		 		 	 	1.	  	 	 Loan Application
	  	 	11	  	  	
		 		 	 	2.	  	 	 Loan Amount
	  	 	11	  	  	
		 		 	 	3.	  	 	 Number of Loans
	  	 	11	  	  	
		 		 	 	4.	  	 	 Interest Rate
	  	 	11	  	  	
		 		 	 	5.	  	 	 Loan Repayments and Loan Maturity
	  	 	11	  	  	
		 		 	 	6.	  	 	 Default or Termination of Employment
	  	 	12	  	  	
					
	 VII.
	 		 	 	IN SERVICE WITHDRAWALS	  	 	12	  	  	
						
		 	 A.
	 				 	HARDSHIP WITHDRAWALS	  	 	12	  	  	

  

			
	KV Pharmaceutical Retirement Savings Plan	  	i          

  

													
	 	 	B.	 	 	 	WITHDRAWALS AFTER AGE 59 1/2	  	12	 	  	 
		 	C.	 		 	WITHDRAWALS AFTER AGE 70 1/2	  	 	12	  	  	
		 	D.	 		 	WITHDRAWALS AFTER NORMAL RETIREMENT AGE	  	 	13	  	  	
		 	E.	 		 	WITHDRAWALS OF ROLLOVER CONTRIBUTIONS	  	 	13	  	  	
					
	 VIII.
	 		 	DISTRIBUTION OF BENEFITS	  	 	13	  	  	
						
		 	A.	 		 	ELIGIBILITY FOR BENEFITS	  	 	13	  	  	
		 	B.	 		 	DISTRIBUTABLE EVENTS	  	 	13	  	  	
		 		 	1.	 	 Death
	  	 	13	  	  	
		 		 	2.	 	 Disability
	  	 	14	  	  	
		 		 	3.	 	 Retirement
	  	 	14	  	  	
		 		 	4.	 	 Minimum Required Distributions
	  	 	14	  	  	
		 		 	5.	 	 Termination of Employment
	  	 	14	  	  	
		 	C.	 		 	FORM OF PAYMENTS	  	 	14	  	  	
		 		 	1.	 	 Lump Sum Distributions
	  	 	14	  	  	
		 		 		 	 a)               Non-rollover
Distribution
	  	 	14	  	  	
		 		 		 	 b)               Direct Rollover
Distribution
	  	 	14	  	  	
		 		 		 	 c)               Combination Non-rollover
Distribution and Direct Rollover Distribution
	  	 	15	  	  	
		 		 	2.	 	 Partial Withdrawals following Termination of Employment
	  	 	15	  	  	
		 		 	3.	 	 Installment Distributions
	  	 	15	  	  	
					
	 IX.
	 		 	MISCELLANEOUS INFORMATION	  	 	15	  	  	
						
		 	A.	 		 	BENEFITS NOT INSURED	  	 	16	  	  	
		 	B.	 		 	ATTACHMENT OF YOUR ACCOUNT	  	 	16	  	  	
		 	C.	 		 	PLAN-TO-PLAN TRANSFER OF ASSETS	  	 	16	  	  	
		 	D.	 		 	PLAN AMENDMENT	  	 	16	  	  	
		 	E.	 		 	PLAN TERMINATION	  	 	16	  	  	
		 	F.	 		 	INTERPRETATION OF PLAN	  	 	16	  	  	
		 	G.	 		 	ELECTRONIC DELIVERY	  	 	16	  	  	
					
	 X.
	 		 	INTERNAL REVENUE CODE TESTS	  	 	17	  	  	
						
		 	A.	 		 	NON-DISCRIMINATION TESTS	  	 	17	  	  	
		 	B.	 		 	TOP HEAVY TEST	  	 	17	  	  	
					
	 XI.
	 		 	PARTICIPANT RIGHTS	  	 	17	  	  	
						
		 	A.	 		 	CLAIMS	  	 	17	  	  	
		 		 	1.	 	 Claims Procedures
	  	 	17	  	  	
		 		 	2.	 	 Review Procedures (For Appeal of an Adverse Benefit Determination)
	  	 	18	  	  	
		 	B.	 		 	STATEMENT OF ERISA RIGHTS	  	 	19	  	  	
					
	 XII.
	 		 	SERVICES AND FEES	  	 	20	  	  	
			
	APPENDIX A.            INVESTMENT OPTIONS	  	 	21	  	  	

  

			
	KV Pharmaceutical Retirement Savings Plan	  	ii          

  

	
	
 
 SUMMARY PLAN
DESCRIPTION
  
 KV
PHARMACEUTICAL RETIREMENT SAVINGS PLAN
  

The KV Pharmaceutical Retirement Savings Plan (the “Plan”) of KV Pharmaceutical has been amended as of 05/31/2010 (the “Effective
Date”). This Plan is intended to be a qualified retirement plan under the Internal Revenue Code. 
 The purpose of the plan is to enable
eligible Employees to save for retirement. As well as retirement benefits, the plan provides certain benefits in the event of death, disability, or other termination of employment. The Plan is for the exclusive benefit of eligible Employees and
their Beneficiaries. 
 This booklet is called a Summary Plan Description (“SPD”) and it contains a summary in understandable language
of your rights and benefits under the plan. If you have difficulty understanding any part of this SPD, you should contact the Plan Administrator identified in the Basic Plan Information section of this document during normal business hours for
assistance. 
 This SPD is a brief description of the principal features of the plan document and trust agreement and is not meant to interpret,
extend or change these provisions in any way. A copy of the plan document is on file with the Plan Administrator and may be read by any employee at any reasonable time. The plan document and trust agreement shall govern if there is a discrepancy
between this SPD and the actual provisions of the plan. 
 This SPD is based on the federal tax implications of your participation in the Plan,
transactions made within your Account, and distributions you may receive from the plan. The state tax implications of your participation and these transactions should be determined based on an examination of appropriate state law. Please consult
with your tax advisor if you have any questions regarding state tax law. 

  

			
	KV Pharmaceutical Retirement Savings Plan	  	1            

  

	
	
 
  

I. Basic Plan Information
  

 

 The information in this section contains definitions to some of the
terms that may be used in this SPD and general Plan information. If the first letter of any of the terms defined below is capitalized when it is used within this SPD, then it represents the indicated defined term. 

 

	A.	Account 

 An Account shall be established
by the Trustee to record contributions made on your behalf and any related income, expenses, gains or losses. It may also be referred to as an Account balance. 
  

	B.	Beneficiary 

 This is the person or
persons (including a trust) you designate, or who are identified by the plan document if you fail to designate or improperly designate, who will receive your benefits in the event of your death. You may designate more than one Beneficiary.

  

	C.	Deferral Contribution 

 This is a
contribution taken directly from the pay of an Employee and contributed to the Plan, subject to certain limits (described below). The plan permits you to make only pre-tax Deferral Contributions. 

 

	D.	Employee 

 An Employee is an individual
who is employed by your Employer as a common law employee or, in certain cases, as a leased employee and is not terminated. 
  

	E.	Employer 

 The name and address of your
Employer is: 
 KV Pharmaceutical 
 1
Corporate Woods 
 Bridgeton, MO 63044 

(314) 645-6600 
 Your Employer’s federal
tax identification number is: 43-0618919 
 The following Employer(s) also participate in the Plan and employees of each employer listed below
shall be eligible to participate in accordance with the Participation section of this Summary Plan Description. 
  

					
	 Federal Tax

Identification Number
	  	 Participating Employer Name
	  	 Designation

	 13-1587982
	  	Particle Dynamics, Inc.	  	Related
			
	 43-1833624
	  	Ther-Rx Corporation	  	Related
			
	 43-1374865
	  	Ethex Corporation	  	Related

  

	F.	ERISA 

 The Employee Retirement Income
Security Act of 1974 (ERISA) identifies the rights of Participants and Beneficiaries covered by a qualified retirement plan. 
  

	G.	Highly Compensated Employee 

 An Employee
is considered a highly compensated Employee if (i) at anytime during the current or prior year you own, or are considered to own, at least five percent of your Employer, or (ii) received compensation from your Employer during the prior
year in excess of $105,000, as adjusted and you are in the top paid group consisting of the top 20% of employees ranked by compensation. 

  

			
	KV Pharmaceutical Retirement Savings Plan	  	2            

  

	H.	Non-Highly Compensated Employee 

 An
Employee who is not a Highly Compensated Employee. 
  

	I.	Participant 

 A participant is an eligible
Employee who has satisfied the eligibility and entry date requirements and is eligible to participate in the Plan or a formerly eligible Employee who has an account balance remaining in the Plan. 

 

	J.	Plan Type 

 The KV Pharmaceutical
Retirement Savings Plan is a defined contribution plan. These types of plans are commonly described by the method by which contributions for participants are made to the plan. The KV Pharmaceutical Retirement Savings Plan is a 401(k) deferral plan.
More information about the contributions made to the plan can be found in Section III, Contributions. 
  

	K.	Plan Administrator 

 The Plan
Administrator is responsible for the administration of the Plan and its duties are identified in the plan document. In general, the Plan Administrator is responsible for providing you and your Beneficiaries with information about your rights and
benefits under the Plan. The name and address of the Plan Administrator is: 
 KV Pharmaceutical 

1 Corporate Woods 
 Bridgeton, MO 63044

 (314) 645-6600 
  

	L.	Plan Number 

 The three digit IRS number
for the Plan is 001. 
  

	M.	Plan Sponsor 

 Your Employer is the
sponsor of the Plan. 
  

	N.	Plan Year 

 The Plan Year is the
twelve-month period ending on the last day of March. Your Employer may only change or have changed the Plan Year by amending and restating to a new Plan Document. 
  

	O.	Service of Process 

 The plan’s agent
for service of legal process is the Plan Administrator. 
  

	P.	Trustee 

 The trustee is responsible for
trusteeing the Plan’s assets. The trustee’s duties are identified in the trust agreement and relate only to the assets in its possession. The name and address of the Plan’s Trustee are: 

Fidelity Management Trust Company 
 82
Devonshire Street 
 Boston, MA 02109 
  

	
	 II. Participation
  

 

	A.	Eligibility Requirements 

 You are
eligible to participate in the Plan if you are an Employee. 

  

			
	KV Pharmaceutical Retirement Savings Plan	  	3            

 However, you are not eligible to participate if you are: 

 

	 	•	 	 a resident of Puerto Rico 

  

	 	•	 	 covered by a collective bargaining agreement for which retirement benefits have been the subject of good faith negotiations

  

	 	•	 	 a Leased Employee. 

 You
are also not eligible to participate if you are an individual who is a signatory to a contract, letter of agreement, or other document that acknowledges your status as an independent contractor not entitled to benefits under the Plan and you are not
otherwise classified by the Employer as a common law employee or the Employer does not withhold income taxes, file Form W-2 (or any replacement form), or remit Social Security payments to the Federal government for you, even if you are later
adjudicated to be a common law employee. 
 You will become eligible to participate in the Plan according to the table below: 

 

							
	 Contribution type
	 	Age Requirement	 	Service Requirement	 	Entry Date
	 Employee Deferral Contributions and Qualified Non-Elective Contributions.
	 	21	 	None	 	Immediate upon
meeting all
eligibility
requirements
				
	 Employer Matching Contributions
	 	21	 	None	 	Immediate upon
meeting all
eligibility
requirements
				
	 Employer Non-Elective Contributions
	 	21	 	One year with 1,000 hours	 	Immediate upon
meeting all
eligibility
requirements

Service with the following predecessor employers, if applicable, shall be counted for eligibility purposes: 

 

	 	•	 	 Particle Dynamics, Inc. 

  

	 	•	 	 Ther-Rx Corporation 

  

	 	•	 	 Ethex Corporation 

 Once
you become a Participant you are eligible to participate in the Plan until you terminate your employment with your Employer or become a member of a class of Employees excluded from the Plan. If you terminate your employment after you have met the
eligibility requirements, and are later re-employed by your Employer, you will again be eligible to participate in the Plan when you complete one hour of service. 
  

	
	 III. Contributions
  

 After you satisfy the participation requirements in Section II of this Summary Plan Description, you will be eligible to make Deferral Contributions. In addition, your Employer may make matching and
nonelective contributions to your Account. The type(s) of contributions available under the Plan are described in this section. 
  

	A.	Compensation 

 Compensation must be
defined to compute contributions under the Plan. For purposes of determining contributions, only Compensation paid to you for services you performed while employed as an Eligible Employee shall be considered. Eligible compensation for computing
contributions under the Plan is the taxable compensation for a Plan Year reportable by your Employer on your IRS Form W-2, excluding reimbursements or other expense allowances, fringe benefits, moving expenses, deferred compensation and welfare
benefits and including salary reduction contributions you made to an Employer sponsored cafeteria, qualified transportation fringe, simplified employee pension, 401(k), 457(b) or 403(b) plan. 

  

			
	KV Pharmaceutical Retirement Savings Plan	  	4            

 The definition of compensation for your plan for purposes of computing contributions also excludes certain
amounts from certain contribution source types as indicated in the table below. 
  

			
	 Source
	  	 Exclusion (s)

	 Employee Deferral Contributions and

Qualified Nonelective Contributions
	  	No Exclusions.
		
	 Employer Matching Contributions
	  	No Exclusions.
		
	 Employer Nonelective Contributions
	  	Overtime Pay, Bonuses, Commissions, Taxable Value of any restricted stock or any qualified or nonqualified Stock options, Severance pay received prior to
termination.

 Compensation for your first year of eligible Plan participation will be measured only for that portion of your
initial Plan Year that you are eligible. Tax laws limit the amount of compensation that may be taken into account each Plan Year; the maximum amount for the 2010 Plan Year is $245,000. 

 

	B.	Employee Deferral Contributions 

  

	 	1.	Regular Deferral Contributions 

 You may elect to defer a percentage of your eligible compensation into the Plan after you satisfy the Plan’s eligibility requirements. The percentage of your eligible compensation you elect will be
withheld from each payroll and contributed to an Account in the Plan on your behalf. For pre-tax contributions being withheld from your compensation, the percentage you defer is subject to an annual limit of the lesser of 60% of eligible
compensation or $16,500 (in 2010; thereafter as adjusted by the Secretary of the Treasury) in a calendar year. 
 All Deferral
Contributions will be withheld from your pay on a pre-tax basis (for federal income tax purposes). 
 Your Deferral Contributions
cannot be forfeited for any reason, however, there are special Internal Revenue Code rules that must be satisfied and may require that some of your contributions be returned to you. The Plan Administrator will notify you if any of your contributions
will be returned. You may increase or decrease the amount you contribute as of the beginning of each payroll period. You may completely suspend your contributions with sufficient notice to the Plan Administrator. Thereafter, if you want to resume
your Deferral Contributions as of the first day of the beginning of each payroll period, you must complete a new election form. 
  

	 	2.	Age 50 and Over Catch-Up Contributions 

 The Plan provides that participants who are projected to be age 50 or older by the end of the calendar year and who are making Deferral Contributions to the Plan may also make a catch-up contribution of
up to $5,500 (in 2009; thereafter as adjusted by the Secretary of the Treasury). 
  

	C.	Employer Matching Contributions 

 You
become eligible for matching contributions only if you make Deferral Contributions. For purposes of determining your matching contributions under the Plan, your Contributions will not include Age 50 and Over Catch-Up Contributions. Employer matching
contributions must be allocated to your Account in the Plan within prescribed legal time limits. 
  

	 	1.	Non-discretionary Matching Contributions 

 Non-discretionary matching contributions will be computed by your Employer based on your eligible compensation contributed to the Plan each Plan Year. Your Employer shall make non-discretionary matching
contributions in an amount equal to 50% of your Deferral Contributions subject to a maximum of 7% of your eligible compensation contributed to the Plan. 
  

	 	2.	Qualified Matching Contributions 

 Your Employer may designate all or a portion of any matching contributions for a Plan Year as “qualified matching contributions” and allocate them to employees to help the Plan pass one or more
annually required Internal Revenue Code nondiscrimination test(s). Any such contributions will be allocated to those Participants eligible to receive the Employer matching contributions described above who made Deferral Contributions during the Plan
Year. Participants are 100% vested in these contributions and may not request a hardship withdrawal of these contributions. 

  

			
	KV Pharmaceutical Retirement Savings Plan	  	5            

  

	D.	Nonelective Contributions 

  

	 	1.	Discretionary Nonelective Contributions 

 Your Employer may make discretionary nonelective contributions in an amount to be determined by the Board of Directors for each Plan Year. You must complete at least 1,000 hours of service during the Plan
Year and be employed as of the last day of the Plan Year to be eligible to receive any nonelective contributions that may be made for that Plan Year. You do not need to satisfy this requirement if you die, become disabled or retire during the Plan
Year. Discretionary nonelective contributions, if any, made to the Plan by your Employer will be allocated to your Account in the ratio that your eligible compensation bears to the total eligible compensation paid to all eligible Participants.

  

	E.	Qualified Nonelective Contributions 

 Your
Employer may designate all or a portion of any nonelective contributions for a Plan Year as “qualified nonelective contributions” and allocate them to Non-Highly Compensated Employees to help the Plan pass one or more annually required
Internal Revenue Code nondiscrimination test(s). You will be 100% vested in these contributions and may not request a hardship withdrawal of these contributions. 
  

	F.	Limit on Contributions 

 Federal law
requires that amounts contributed by you and on your behalf by your Employer for a given limitation year generally may not exceed the lesser of: 
 $49,000 (or such amount as may be prescribed by the Secretary of the Treasury); or 
 100% of your
annual compensation. 
 The limitation year for purposes of applying the above limits is the twelve month period ending March 31.
Contributions under this Plan, along with Employer contributions under any other Employer-sponsored defined contribution plans, may not exceed the above limits. If this does occur, then excess contributions in your Account may be forfeited or
refunded to you based on the provisions of the Plan document. You will be notified by the Plan Administrator if you have any excess contributions. Income tax consequences may apply on the amount of any refund you receive. 

 

	G.	Rollover Contributions 

 You can roll over
part or all of an eligible rollover distribution you receive from an eligible retirement plan into this Plan even if you have not yet satisfied the age and Eligibility service requirements described in Section II above; however you will not become a
Participant in the Plan and become entitled to make Deferral Contributions and share in Employer contributions until you have met the Plan’s eligibility and entry date requirements. An eligible retirement plan is a qualified plan under
Section 401(a), a 403(a) annuity plan, a 403(b) annuity contract, an eligible 457(b) plan maintained by a governmental employer, and an individual retirement account and individual retirement annuity. An eligible rollover distribution includes
any distribution from an eligible retirement plan, except any distribution from an individual retirement account or an individual retirement annuity consisting of nondeductible contributions or any distribution from a 403(b) annuity contract
consisting of after-tax employee contributions. Making Rollover Contributions to the Plan that consist of assets other than qualified 401(a) plan assets may result in the loss of favorable capital gains or ten year income averaging tax treatment
that may otherwise be available with respect to a lump sum distribution to you from the Plan. The loss of this favorable tax treatment may also occur if you make a Rollover Contribution to the Plan that consists of qualified 401(a) plan assets under
certain circumstances. If you may be eligible for this special tax treatment, you should consult your tax advisor and carefully consider the impact of making a Rollover Contribution to the Plan. 

The Plan Administrator must approve any Rollover Contribution and reserves the right to refuse to accept any such contribution. If your Rollover
Contribution to the Plan is not a direct rollover (i.e., you received a cash distribution from your eligible retirement plan), then it must be received by the Trustee within 60 days of your receipt of the distribution and must not contain any after
tax contribution amounts. Rollover Contributions may only be made in the form of cash, allowable fund shares, or (if the Plan allows new loans in accordance with the terms of this SPD) promissory notes from an eligible retirement plan. Your Rollover
Contributions Account will be subject to the terms of this Plan and will always be fully vested and nonforfeitable. In general, if you receive an eligible rollover distribution as a surviving spouse of a participant or as a spouse or former spouse
who is an “alternate payee” pursuant to a qualified domestic relations order (“QDRO”), you may also make a Rollover Contribution to the Plan. 

  

			
	KV Pharmaceutical Retirement Savings Plan	  	6            

 The Plan will not accept a Rollover Contribution of any amounts attributable to Roth (after-tax deferral)
contributions made to another plan. 
  

	
	 IV. Investments
  

  

	A.	Investments 

 The
Employee Retirement Income Security Act of 1974 (ERISA) imposes certain duties on the parties who are responsible for the operation of the Plan. These parties, called fiduciaries, have a duty to invest Plan assets in a prudent manner. However, an
exception exists for plans that comply with ERISA Section 404(c) and permit a Participant to exercise control over the assets in his/her Account and choose from a broad range of investment alternatives. This Plan is intended to be a
Section 404(c) plan. To the extent that you have directed the investment of assets in your Account under the Plan, you are responsible for the investment decisions you made relating to those assets and the Plan fiduciaries are not responsible
for any losses resulting from your investment instructions. In addition, you have the right to direct the trustee regarding mutual fund proxy voting based on the number of shares you own. Please see Appendix A for a list of the investments currently
available under the Plan. If you are invested in the Stock Fund, with the exception of certain participants described in Appendix A to this SPD, your purchases and sales of units of the Stock Fund will be executed directly through the Trustee. If
you are invested in the Stock Fund, you will also be given the opportunity to exercise voting rights for shares of the corporation allocated to your Account at all times that corporate shareholders vote. The Plan Administrator has established
procedures to ensure that Participant purchase, holding and sale of units of the Stock Fund, as well as the exercise of voting rights with respect to the stock, shall be held in the strictest confidence (not disclosed to the Employer). The Plan
Administrator is responsible for monitoring compliance with these confidentiality procedures. Please see Appendix A for a list of the investments currently available under the Plan. You can get additional information about any investment alternative
or the proxy voting for them; by contacting Fidelity by calling 1-800-294-4015 or by accessing the NetBenefits®
web site at www.netbenefits.com. The Plan Administrator is the Plan fiduciary responsible for providing the following additional information (all of which can be obtained by contacting Fidelity): 

 

	 	•	 	 A description of the annual operating expenses of each investment fund (e.g., investment management fees, administrative fees, transaction costs) which
reduce the rate of return to you, and the aggregate amount of such expenses expressed as a percentage of average net assets of the designated investment alternative; 

 

	 	•	 	 Prospectuses, financial statements and reports, plus any other material provided to the Plan which relates to the available investment alternatives;

  

	 	•	 	 A list of the assets comprising the portfolio of each investment fund that constitute plan assets within the meaning of 29 CFR 2510.3-101, the value of
each such asset (or the proportion of the investment fund which it comprises), and with respect to each such asset which is a fixed rate investment contract issued by a bank, savings and loan association or insurance company, the name of the issuer
of the contract, the term of the contract and the rate of return on the contract; 

  

	 	•	 	 Information concerning the value of shares or units of the investment funds available to you under the Plan, as well as the past investment performance
of such funds, determined net of expenses, on a reasonable and consistent basis; and 

  

	 	•	 	 Information concerning the value of shares or units in the investment funds held in your Plan account. 

 

	B.	Statement of Account 

The assets in the Plan are invested in available investment options and a separate Account is established for each Participant who
receives and/or makes a contribution. The value of your Account is updated each business day to reflect any contributions, exchanges between investment options, investment earnings or losses for each investment option and withdrawals. Your account
statement is available online through NetBenefits® at www.netbenefits.com. You can view and print a
statement for any time period up to 24 previous months. A statement is also available to be automatically mailed to you every three months. You can initiate these mailings by logging on to
NetBenefits® and selecting Mail Preferences under the Accounts tab. 

  

			
	KV Pharmaceutical Retirement Savings Plan	  	7            

  

	C.	Election 

 The Plan is intended to qualify
as a Participant-directed plan under Section 404(c) of ERISA. This means that you are responsible for your investment decisions under the plan and any resulting investment activity. The plan fiduciaries, including, but not limited to, Fidelity
Management Trust Company and KV Pharmaceutical, are not responsible for any losses incurred as a result of your investment decisions. 
  

	
	V. Vesting

 The term “vesting” refers to your nonforfeitable
right to the money in your Account. You receive vesting credit for the number of years that you have worked for your Employer and any Related Employer. In addition, service with the following Employers will be included to determine the number of
years of service for vesting purposes: 
  

	 	•	 	 Particle Dynamics, Inc. 

  

	 	•	 	 Ther-Rx Corporation 

  

	 	•	 	 Ethex Corporation 

 If you
terminate your employment with your Employer, you may be able to receive a portion or all of your Account based on your vested percentage. Your employer has preserved a prior vesting schedule in the Plan. The Additional Vesting Schedule section
below will indicate if a different vesting schedule applies to you. You are always 100% vested in your Rollover Contributions, Qualified Matching Contributions, Qualified Nonelective Contributions, Deferral Contributions and any earnings thereon.
Your Employer Nonelective Contributions and earnings shall be vested in accordance with the following schedule: 
  

					
	 Years of Service
	  	 	Vesting Percentage	  
		
	 less than 3
	  	 	0	  
		
	 3
	  	 	100	  

 Your Employer Matching Contributions
and earnings shall be vested in accordance with the following schedule: 
  

					
	 Years of Service
	  	 	Vesting Percentage	  
		
	 less than 2
	  	 	0	  
		
	 2
	  	 	20	  
		
	 3
	  	 	40	  
		
	 4
	  	 	60	  
		
	 5
	  	 	80	  
		
	 6
	  	 	100	  

 Additional Vesting Schedules

 Employees who are members of certain class(es), specified below, receive a different vesting schedule for the below-specified
contribution: 
 Your Discretionary Profit Sharing contributions will be subject to the vesting schedule appearing immediately below if you are
a member of the following class: Participants who do not complete an Hour of Service on or after April 1, 2007 
  

					
	 Years of Service
	  	 	Vesting Percentage	  
		
	 less than 5
	  	 	0	  
		
	 5
	  	 	100	  

  

			
	KV Pharmaceutical Retirement Savings Plan	  	8            

 Your Discretionary Profit Sharing, Employer Match contributions will be subject to the vesting schedule
appearing immediately below if you are a member of the following class: Participants who were Employees of the Employer as of February 6, 2009 and were involuntarily terminated on such date. 

 

			
	 Years of Service
	  	Vesting Percentage
		
	 less than 1
	  	100

 Your Discretionary Profit Sharing,
Employer Match contributions will be subject to the vesting schedule appearing immediately below if you are a member of the following class: Participants who were Employees of the Employer on February 7, 2009 

 

					
	 Years of Service
	  	 	Vesting Percentage	  
		
	 less than 1
	  	 	100	  

 Your Discretionary Profit Sharing,
Employer Match contributions will be subject to the vesting schedule appearing immediately below if you are a member of the following class: Participants who were Employees of the Employer as of May 31, 2010, and were involuntarily terminated
on such date 
  

					
	 Years of Service
	  	 	Vesting Percentage	  
		
	 less than 1
	  	 	100	  

 Your Discretionary Profit Sharing,
Employer Match contributions will be subject to the vesting schedule appearing immediately below if you are a member of the following class: Participants who were Employees of the Employer as of June 1, 2010 

 

			
	 Years of Service
	  	Vesting Percentage
		
	 less than 1
	  	100

 Your Discretionary Profit Sharing,
Employer Match contributions will be subject to the vesting schedule appearing immediately below if you are a member of the following class: All Patricipants in the Plan whose employment was terminated from 2/6/2009-12/31/2009 

 

			
	 Years of Service
	  	Vesting Percentage
		
	 less than 1
	  	100

 The methodology used to determine your
years of service for vesting purposes has changed. Previously you received vesting credit for a year of service under the ‘general method’ if you earned at least 1,000 hours of service in a Plan Year. Vesting under the Plan is now based
upon the elapsed time method. Hours of service are not counted and instead periods of service are computed. A period of service is determined based on the time you work for your Employer. Only your whole years of service with your Employer will be
counted to compute your years of service for vesting purposes. For example, if you have three years and ten months of service, then for vesting purposes you will receive credit for three years of service. 

  

			
	KV Pharmaceutical Retirement Savings Plan	  	9            

 If you were an Employee before January 1, 2002, you will receive vesting credit for your years of
service with your Employer based upon the following: 
  

					
	 Applicable Year(s)
	  	 Method
	  	Measurement Period
	Plan Year(s) before 2002	  	General	  	Apr. 1 to Mar. 31
			
	2002	  	General or Elapsed Time*	  	Apr. 1 to Mar. 31
			
	Plan Year(s) after 2002	  	Elapsed Time	  	Apr. 1 to Mar. 31

  

	*	You will receive vesting credit for this period if you would get such credit under either the general method (hours of service) or the elapsed time method.

 If you became an Employee on or after January 1, 2002, then you will receive vesting credit for your years of service with
your Employer based only on the elapsed time method. In this case, your measurement period for determining your years of service will generally be based upon your date of employment with your Employer. 

 

	A.	Forfeiture and Re-employment 

 If you
terminate your employment with your Employer and are less than 100% vested in your Employer Account, you may forfeit the non-vested portion of your Employer Account. A forfeiture will occur in the Plan Year that you receive a distribution of your
entire vested Account, or if you do not receive a distribution, after five consecutive one year breaks in service. Forfeitures are retained in the Plan and may first be used to pay administrative expenses. Any remaining amounts will be used to
reduce future Employer contributions payable under the Plan. 
 Example: (This example is for illustration purposes only.)
Assuming you terminate your employment in 2010 with the following Account: 
  

													
	Source	  	Amount	 	  	Vested Percentage	 	 	Vested Amount	 
				
	 Employee
	  	$	2,000	  	  	 	100	%† 	 	$	2,000	  
				
	 Employer
	  	$	1,000	  	  	 	80	% 	 	 	800	  
		  	 	 	 	  				 	 	 	 
				
	 Total
	  	$	3,000	  	  				 	$	2,800	  

 You received a $2,800
distribution in 2010 from the Plan. This represented a complete distribution of your Account. A $200 forfeiture will occur in 2010. 
  

	†	You are always 100% vested in your own employee Deferral Contributions and earnings in the Plan. 

 A one-year break in service occurs when you have less than one hour of service in the twelve consecutive month period beginning with the earlier of the day your employment terminates or the 12 month
anniversary of the date on which you are otherwise first absent from service. Notwithstanding the above, if you are absent from work due to a maternity or paternity leave, then the 12-consecutive month period beginning on the first anniversary of
the first date of that absence will not be a one-year break in service, and if you are absent from work due to a leave of absence under the Family and Medical Leave Act, no 12-consecutive month period beginning on the first anniversary of the first
date of that absence, and subsequent anniversaries, during which the absence continues, will be a one-year break in service, provided you return to work following the leave. 
 When any period of absence is due to military service entitling you to reemployment rights under federal law and you return to work at the Employer or a Related Employer following that absence, there will
be no break in service and you will be credited with service for the entire period of that absence. 
 If you were a Participant when you
terminated your employment and are re-employed by your Employer, then you will again become a Participant on the date you complete one hour of service. Your period of employment before you were rehired is referred to as your pre-break service. Your
period of employment after you were rehired is referred to as your post-break service. If you are re-employed after incurring five consecutive one-year breaks in service then your post-break service will not count in determining your vesting
percentage in your pre-break Account balance. Your post-break service will count in determining your vesting percentage in your pre-break Account balance and any forfeited amounts will be restored to your Account if: 

 

	 	(1)	You are re-employed by your Employer before you incur five consecutive one-year breaks in service, and 

  

			
	KV Pharmaceutical Retirement Savings Plan	  	10            

  

	 	(2)	If you received distribution of your vested Account and you repay the full amount of the distribution before the end of the five-year period that begins on the date you
are re-employed. 

 Example: Assume you terminate employment with your Employer in 2010 with an Account
balance of $3,000, of which $2,800 is vested. You elect to receive a lump sum distribution of your vested Account balance. The remainder, or $200, is forfeited in 2010. If you are rehired on January 1, 2011 and repay the $2,800 distribution
prior to January 1, 2016, the $200 previously forfeited will be restored to your Account. Additionally, your service after January 1, 2011 is counted toward vesting your pre-break Account balance of $3,000. 

 

	
	VI. Participant Loans

  

	A.	General Loan Rules 

 Loans shall be made
available to all qualifying Participants on a reasonably equivalent basis. However, loans may not be made to an eligible Employee who makes a rollover contribution and who has not satisfied the Plan’s age, service and entry date requirements.
Loans are not considered distributions and are not subject to Federal or state income taxes, provided they are repaid as required. While you do have to pay interest on your loan, both the principal and interest are deposited in your Account.

  

	B.	Specific Loan Procedures 

  

	 	1.	Loan Application 

 If you have met the Plan’s eligibility and entry date requirements, you may apply for a loan by calling the Fidelity Retirement Benefits Line, 1-800-294-4015 or by accessing the NetBenefits® web site at www.netbenefits.com. All telephone calls will be recorded. You may apply for only one loan each
calendar year. All loans (except loans for the purchase of a principal residence) have been pre-approved by the Plan Administrator based on the criteria outlined in the Plan’s loan procedures. Loans will be allowed for any purpose. A loan set
up fee of $125 will be deducted from your Account for each new loan processed. 
  

	 	2.	Loan Amount 

 The minimum
loan is $1,000 and the maximum amount is the lesser of one-half of your vested Account balance or $50,000 reduced by the highest outstanding loan balance in your Account during the prior twelve month period. All of your loans from plans maintained
by your Employer or a Related Employer will be considered for purposes of determining the maximum amount of your loan. Up to 50% of your vested Account balance may be used as collateral for any loan. 

 

	 	3.	Number of Loans 

 You may
only have 1 loan outstanding at any given time. If you have an existing loan you may not apply for another loan until the existing loan is paid in full. 
  

	 	4.	Interest Rate 

 All loans
shall bear a reasonable rate of interest as determined by the Plan Administrator based on the prevailing interest rates charged by persons in the business of lending money for loans which would be made under similar circumstances. The interest rate
shall remain fixed throughout the duration of the loan. 
  

	 	5.	Loan Repayments and Loan Maturity 

 All loans must be repaid in level payments through after-tax payroll deductions on at least a quarterly basis over a five year period unless it is for the purchase of your principal residence in which
case the loan repayment period may not extend beyond 10 years from the date of the loan. If repayment is not made by payroll deduction, a loan shall be repaid to the Plan by payment to the Employer. The level repayment requirement may be waived for
a period of one year or less if you are on a leave of absence, however, your loan must still be repaid in full on the maturity date. If you are on a military leave of absence, the repayment schedule may be waived for the entire length of the time
missed on leave. Your loan will accrue interest during this time, and 

  

			
	KV Pharmaceutical Retirement Savings Plan	  	11            

 
upon return from a military leave of absence, your loan will be reamortized to extend the length of the loan by the length of the leave. If a loan is not repaid within its stated period, it will
be treated as a taxable distribution to you. 
  

	 	6.	Default or Termination of Employment 

 The Plan Administrator shall consider a loan in default if any scheduled repayment remains unpaid as of the last business day of the calendar quarter following the calendar quarter in which a loan is
initially considered past due. In the event of a default, death, disability, or termination of employment, the entire outstanding principal and accrued interest shall be immediately due and payable. However, if your termination of employment results
from a corporate action on the part of your employer and you remain performing the same job after that corporate action, within 60 days of your termination of employment you may request that the Plan Administrator roll over your loan to your new
employer’s retirement plan (if such new plan will accept your loan roll over). Unless you roll over your loan, any default in repayment to the Plan will result in the treating of the balance due for your loan as a taxable distribution from the
Plan. 
  

	
	VII. In Service Withdrawals

 If you qualify, as indicated
below for each withdrawal, you may obtain a withdrawal from the Plan while you are still an Employee. You can apply for any of the below described distributions by calling the Fidelity Retirement Benefits Line at 1-800-294-4015 or by accessing the
NetBenefits® web site at www.netbenefits.com. All telephone calls will be recorded. If your Account
balance includes an investment in the Stock Fund, a withdrawal of any portion of your Account balance will not be processed until the end of the withdrawal trading window applicable to the Stock Fund (see Appendix A for description) during which the
withdrawal is requested. When shares of the Stock Fund are sold to process a withdrawal, the withdrawal amount will not be distributed until the proceeds from the sale of the shares of the Stock Fund are available as described in Appendix A. The
following types of withdrawals are available under the Plan: 
  

	A.	Hardship Withdrawals 

 If you are an
Employee and request a hardship withdrawal, you may withdraw certain contributions to satisfy any of the following immediate and heavy financial needs: (1) medical expenses for you, your spouse, children or dependents; (2) the purchase of
your principal residence; (3) to prevent your eviction from, or foreclosure on, your principal residence; (4) to pay for post-secondary education expenses (tuition, related educational fees, room and board) for you, your spouse, children
or dependents for the next twelve months; (5) to make payments for burial or funeral expenses for your deceased parent, spouse, child or dependent; (6) to pay expenses for the repair of damage to your principal residence that would qualify
for the casualty deduction under Section 165 of the Internal Revenue Code (without regard to whether the loss exceeds 10% of adjusted gross income); or any other immediate and heavy financial need as determined based on Internal Revenue Service
regulations. In accordance with Internal Revenue Service regulations, you must first exhaust all other assets reasonably available to you prior to obtaining a hardship withdrawal. This includes obtaining a loan from this Plan and any other qualified
plan maintained by your Employer. Your Deferral Contributions to this Plan, and any other Employer-sponsored qualified or non-qualified plan, will be suspended for six months after your receipt of the hardship withdrawal. The minimum hardship
withdrawal is $500. Hardship withdrawals will be subject to the 10% nonperiodic income tax withholding rate unless you elect out of the withholding. Contributions available to withdraw under the terms of this section are: 

 

	 	•	 	 Employee Deferral 

  

	 	•	 	 Rollover 

  

	B.	 Withdrawals After Age
59 1/2 

 If you have reached age 59 1/2, then you may elect to withdraw all or a portion of your employee
Deferral Contributions Account while you are still employed by your Employer. 
  

	C.	 Withdrawals After Age
70 1/2 

 Starting in the calendar year in which you reach
age 70 1/2, you may elect to receive distributions
calculated in the same manner as Minimum Required Distributions. For more information, please refer to the paragraph so entitled under the Distributable Events subsection of this SPD’s section on Distribution of Benefits below.

  

			
	KV Pharmaceutical Retirement Savings Plan	  	12            

  

	D.	Withdrawals After Normal Retirement Age 

 You may elect to withdraw your vested Account balance after you reach the Plan’s normal retirement age, 62, or delay it until you retire. Notwithstanding the above, by law certain contributions
including employee deferral, qualified matching, safe harbor matching, qualified nonelective, and safe harbor nonelective contributions cannot be withdrawn prior to age 59 1/2. 

 

	E.	Withdrawals of Rollover Contributions 

 If
you have a balance in your rollover contributions Account, you may elect to withdraw all or a portion of it. There is no limit on the number of withdrawals of this type. 
 The amount of any taxable withdrawal that is not rolled over into an Individual Retirement Account or another qualified employer retirement plan will be subject to Federal and state, if applicable, income
taxes. In general, the amount of any taxable withdrawal that is not rolled over into an Individual Retirement Account or another qualified employer retirement plan will be subject to 20% Federal Income Tax and any applicable State Income Tax. A 10%
Internal Revenue Code early withdrawal penalty tax may apply to the amount of your withdrawal if you are under the age of
59 1/2 and do not meet one of the Internal Revenue
Code exceptions. 
 The Plan Administrator will notify you of the appropriate procedures to make a withdrawal from the Plan. Consult your
Plan Administrator for more information. 
  

	
	VIII. Distribution of Benefits

  

	A.	Eligibility For Benefits 

 A distribution
can be made to you if you request one due to your disability, retirement, or termination of employment from your Employer and any Related Employer. Your Beneficiary or Beneficiaries may request a distribution of your vested Account balance in the
event of your death. The value of your Account balance will continue to increase or decrease, as appropriate, based on the investment returns until it is distributed. 
 You may defer receipt of your distribution until a later date. However, you cannot postpone it if your vested Account balance is $5,000 or less in which case the Plan Administrator will direct the Trustee
that any amount exceeding $1,000 be distributed to an Individual Retirement Account or Annuity (“IRA”) for your benefit. If your vested Account balance is $1,000 or less, the Plan Administrator will direct the Trustee to distribute it to
you as a lump sum distribution without your consent. Prior to such distribution you still have the right to request that the amount be distributed directly to you in the form of a lump sum payment or to request that it be rolled-over to a different
IRA provider or another retirement plan eligible to receive rollover contributions. 
 If you fail to request a different treatment of an
automatic distribution under the Plan’s Cash-Out Provision, your distribution will be paid over to an IRA provider chosen by the Plan Administrator and invested in a product designed to preserve the principal of that distribution while still
providing a reasonable rate of return and preserving liquidity. The fees assessed against this newly established IRA by its provider will be paid by the participant. 
 If you have questions regarding the Plan’s automatic rollover rules, the Plan’s IRA provider for automatic rollovers, or the fees and expenses applicable to the automatic rollover IRA, please
contact the Plan Administrator. Your consent will be required for any distribution if your vested Account balance is greater than $5,000. 
 You
should consult with your tax advisor to determine the financial impact of your situation before you request a distribution. You may apply for a distribution by calling the Fidelity Retirement Benefits Line at 1-800-294-4015. All telephone calls will
be recorded. The approval of your Plan Administrator will be required before any distribution can be completed. 
  

	B.	Distributable Events 

 You are eligible to
request a distribution of your vested Account balance based on any of the following events: 
  

	 	1.	Death 

 If you are a
Participant in the Plan and die, your vested Account balance, if any, will be paid to your designated Beneficiary or Beneficiaries. If you are an Employee of your Employer or a Related Employer at the time of your death, your Account balance will
automatically become 100% vested. You may designate a Beneficiary or 

  

			
	KV Pharmaceutical Retirement Savings Plan	  	13            

 
Beneficiaries on a designation form that must be properly signed and filed with the Plan Administrator. If you are married and want to designate someone other than your spouse as your primary
Beneficiary, your spouse must consent to this designation by signing the form. His/her signature must be witnessed by a Plan representative or a notary public. You should contact the Plan Administrator to obtain a designation of beneficiary form.

  

	 	2.	Disability 

 If you become
disabled while you are employed by your Employer or a Related Employer, so that you are determined disabled by a physician selected by the Plan Administrator, the full value of your Account balance may be distributed to you upon request. You will
automatically become 100% vested in your Account balance when you become disabled. You may request a distribution of your Account balance only if you terminate your employment with your Employer or Related Employer. 

 

	 	3.	Retirement 

 You do not
have to terminate your employment with your Employer just because you attain your early retirement age of 55 and complete 10 years of service or you attain your normal retirement age of 62. You will automatically become 100% vested in your Account
balance upon meeting the retirement requirements. You may take an early retirement distribution at or after age 55 and after you complete 10 years of service, but you must first terminate your employment with your Employer or Related Employer.

  

	 	4.	Minimum Required Distributions 

 You are required by law to receive a minimum required distribution from the Employer’s Plan, unless you are a five percent owner of the Employer, no later than April 1 of the calendar year
following the calendar year you turn 70 1/2 or
terminate your employment, whichever is later. If you are a five percent owner of the Employer, you must start receiving your distribution no later than April 1 of the calendar year following the calendar year you turn 70 1/2. Once you start receiving your minimum required distribution, you
should receive it at least annually and you should complete the appropriate documentation each year until all assets in your Account are distributed. If you have any questions about your minimum required distributions, please contact your Plan
Administrator. 
  

	 	5.	Termination of Employment 

Generally, if you terminate your employment with your Employer and all Related Employers, you may elect to receive a distribution of your
vested Account balance from the Plan. 
  

	C.	Form of Payments 

  

	 	1.	Lump Sum Distributions 

Your entire vested Account balance will be paid to you in a single distribution or other distribution that you elect. 

 

	 	a)	Non-rollover Distribution 

Any distribution paid directly to you will be subject to mandatory Federal income tax withholding of 20% of the taxable distribution and
the remaining amount will be paid to you. You cannot elect out of this tax withholding but you can avoid it by electing a direct rollover distribution as described below. This withholding is not a penalty but a prepayment of your Federal income
taxes. 
 You may rollover the taxable distribution you receive to an individual retirement account (IRA) or your new
employer’s qualified plan, if it accepts rollover contributions and you roll over this distribution within 60 days after receipt. You will not be taxed on any amounts timely rolled over into the IRA or your new employer’s qualified Plan
until those amounts are later distributed to you. Any amounts not rolled over may also be subject to certain early withdrawal penalties prescribed under the Internal Revenue Code. 

b) Direct Rollover Distribution 
 As an alternative to a non-rollover distribution paid directly to you, you may request a rollover distribution of your entire eligible Account balance directly into a Fidelity Advisor IRA, a non-Fidelity
Advisor IRA or to your new employer’s eligible plan, if it accepts your rollover contributions, or a 403(a) Annuity. Federal income taxes will not be withheld on any direct rollover distribution. 

  

			
	KV Pharmaceutical Retirement Savings Plan	  	14            

  

	 	1.	Rollover to a Fidelity Advisor IRA - You must complete the appropriate documentation and a Fidelity Advisor IRA application. If your distribution is
authorized by the Plan Administrator, it will be forwarded to the Trustee for processing. Your vested Account balance will be directly rolled over to a Fidelity Advisor IRA 

 

	 	2.	Rollover to a Non-Fidelity Advisor IRA - You must complete the appropriate documentation and indicate the name and address of the trustee, and IRA account
number. If your distribution is authorized by the Plan Administrator, it will be forwarded to the Trustee for processing and they will issue a check payable to the IRA trustee or custodian for your benefit. The check will be mailed directly to you
and contain the notation “direct rollover” and you will be responsible for forwarding it to the trustee or custodian of your IRA. 

  

	 	3.	Rollover to your New Employer’s Retirement Plan - You should check with your new employer to determine if its plan will accept your rollover
contributions. If allowed, you must complete the appropriate documentation and indicate the name, address and plan number of your new employer’s retirement plan. If your distribution is authorized by the Plan Administrator, it will be forwarded
to the Trustee for processing and they will issue a check payable to the trustee of your new employer’s plan. The check will contain the notation “direct rollover” and will be mailed directly to you and you will be responsible for
forwarding on to the new trustee. 

  

	 	4.	Rollover to a 403(a) Annuity - You must complete the appropriate documentation and indicate the name and address of the trustee or custodian, and the
403(a) Annuity account number. If your distribution is authorized by the Plan Administrator, it will be forwarded to the Trustee for processing and they will issue a check payable to the 403(a) Annuity trustee or custodian for your benefit. The
check will be mailed directly to you and contain the notation “direct rollover”and you will be responsible for forwarding it to the trustee or custodian of your 403(a) Annuity. 

 

	 	c)	Combination Non-rollover Distribution and Direct Rollover Distribution 

 You may request that part of your distribution be paid directly to you and the balance rolled into an IRA, your new employer’s retirement plan, or a 403(a) annuity. Any part of the distribution paid
directly to you will be subject to the Federal income tax withholding rules referred to in subsection a) above and any direct rollover distribution will be made in accordance with section b) above. Your direct rollover distribution must be at least
$500. 
 You will pay income tax on the amount of any taxable distribution you receive from the Plan unless it is rolled into an
IRA or your new employer’s qualified plan. A 10% IRS premature distribution penalty tax may also apply to your taxable distribution unless it is rolled into an IRA or another qualified plan. The 20% Federal income tax withheld under this
section may not cover your entire income tax liability. In the case of a combination distribution, if any portion of the eligible rollover distribution consists of after-tax contributions, the amount paid directly to you will be considered to
consist completely of after-tax contributions before any after-tax contributions are attributed to the portion paid as a direct rollover. Consult with your tax advisor for further details. 

 

	 	2.	Partial Withdrawals following Termination of Employment 

 Withdrawals of any portion of your vested balance will be available to you after you have terminated your employment. 
  

	 	3.	Installment Distributions 

Your vested Account balance will be paid to you in substantially equal amounts over a period of time. You may elect annual or more
frequent installments. You may elect to receive a lump sum distribution after you start to receive installment distributions, by completing the appropriate documentation. The direct rollover distribution rules referred to in the lump sum
distribution section also apply to installment distributions. 

  

			
	KV Pharmaceutical Retirement Savings Plan	  	15            

  

	
	IX. Miscellaneous Information

  

	A.	Benefits Not Insured 

 Benefits provided
by the Plan are not insured or guaranteed by the Pension Benefit Guaranty Corporation under Title IV of the Employee Retirement Income Security Act of 1974 because the insurance provisions under ERISA are not applicable to this particular Plan. You
will only be entitled to the vested benefits in your Account based upon the provisions of the Plan and the value of your Account will be subject to investment gains and losses. 

 

	B.	Attachment of Your Account 

 Your Account
may not be attached, garnished, assigned or used as collateral for a loan outside of this Plan except to the extent required by law. Your creditors may not attach, garnish or otherwise interfere with your Account balance except in the case of a
proper Internal Revenue Service tax levy or a Qualified Domestic Relations Order (QDRO). A QDRO is a special order issued by the court in a divorce, child support or similar proceeding. In this situation, your spouse, or former spouse, or someone
other than you or your Beneficiary, may be entitled to a portion or all of your Account balance based on the court order. Participants and Beneficiaries can obtain, without a charge, a copy of QDRO procedures from the Plan Administrator. 

 

	C.	Plan-to-Plan Transfer Of Assets 

 Your
Employer may direct the Trustee to transfer all or a portion of the assets in the Account of designated Participants to another plan or plans maintained by your Employer or other employers subject to certain restrictions. The plan receiving the
Trust Funds must contain a provision allowing the transfer and preserve any benefits required to be protected under existing laws and regulations. In addition, a Participant’s vested Account balance may not be decreased as a result of the
transfer to another plan. 
  

	D.	Plan Amendment 

 Your Employer reserves
the authority to amend certain provisions of the Plan by taking the appropriate action. However, any amendment may not eliminate certain forms of benefits under the Plan or reduce the existing vested percentage of your Account balance derived from
Employer contributions. If you have three or more years of service with your Employer and a Related Employer and the vesting schedule is amended, then you will be given a choice to have the vested percentage of future Employer contributions made to
your Account computed under the new or the old vesting schedule. The Plan Administrator will provide you with the appropriate information to make an informed decision if the Plan’s vesting schedule is amended. 

 

	E.	Plan Termination 

 Your Employer has no
legal or contractual obligation to make annual contributions to or to continue the Plan. Your Employer reserves the right to terminate the Plan at any time by taking appropriate action as circumstances may dictate, with the approval of the Board of
Directors. In the event the Plan should terminate, each Participant affected by such termination shall have a vested interest in his Account of 100 percent. The Plan Administrator will facilitate the distribution of Account balances in single lump
sum payments to each Participant in accordance with Plan provisions until all assets have been distributed by the Trustee. Each Participant in the Plan upon Plan termination will automatically become 100% vested in his/her Account balance.

  

	F.	Interpretation of Plan 

 The Plan
Administrator has the power and discretionary authority to construe the terms of the Plan based on the Plan document, existing laws and regulations and to determine all questions that arise under it. Such power and authority include, for example,
the administrative discretion necessary to resolve issues with respect to an Employee’s eligibility for benefits, credited services, disability, and retirement, or to interpret any other term contained in Plan documents. The Plan
Administrator’s interpretations and determinations are binding on all Participants, Employees, former Employees, and their Beneficiaries. 
  

	G.	Electronic Delivery 

 This Summary Plan
Description and other important Plan information may be delivered to you through electronic means. This Summary Plan Description contains important information concerning the rights and benefits of your Plan. If you receive this Summary Plan
Description (or any other Plan information) through electronic means you are entitled to request a paper copy of this document, free of charge, from the Plan Administrator. The electronic version of this document contains substantially the same
style, format and content as the paper version. 

  

			
	KV Pharmaceutical Retirement Savings Plan	  	16            

	
	X. Internal Revenue Code Tests

  

	A.	Non-Discrimination Tests 

 The Plan must
pass Internal Revenue Code non-discrimination tests as of the last day of each Plan Year to maintain a qualified Plan. These tests are intended to ensure that the amount of contributions under the Plan do not discriminate in favor of Highly
Compensated Employees. In order to meet the tests, your Employer encourages participation from all eligible Employees. Depending upon the results of the tests, the Plan Administrator may have to refund Deferral Contributions contributed to the Plan
and vested matching contributions to certain Highly Compensated Employees, as determined under Internal Revenue Service regulations. Deferral Contributions or matching contributions will be refunded to you from applicable investment options. You
will be notified by the Plan Administrator if any of your contributions will be refunded to you. 
  

	B.	Top Heavy Test 

 The Plan is subject to
the Internal Revenue Code “top-heavy” test. Each Plan Year, the Plan Administrator tests this Plan, together with any other Employer-sponsored qualified plans that cover one or more key employees, to ensure that no more than 60% of the
benefits are for key employees. If this Plan is top-heavy, then your Employer may be required to make a minimum annual contribution on your behalf to this, or another Employer sponsored plan, if you are employed as of Plan Year-end. In addition, the
following vesting schedule will be used instead of the one previously listed in the vesting section of this Summary Plan Description. 
  

			
	Years of Service	 	Vesting Percentage
		
	less than 3	 	0
		
	3	 	100

  

	
	XI. Participant Rights

  

	A.	Claims 

  

	 	1.	Claims Procedures 

 A plan
participant or beneficiary may make a claim for benefits under the Plan. Any such claim you file must be submitted to the Plan Administrator in a form and manner acceptable to the Plan Administrator. Contact your Plan Administrator for more
information. Generally, the Plan Administrator will provide you with written notice of the disposition of your claim within 90 days after receipt of your claim by the Plan. If the Plan Administrator determines that special circumstances require an
extension of time to process your claim, the Plan Administrator will furnish written notice of the extension to the claimant prior to the expiration of the initial 90-day period. In no event shall such extension exceed a period of 90 days from the
end of the initial period the Plan Administrator had to dispose of your claim. The extension notice shall indicate the special circumstances requiring an extension of time and the date by which the Plan expects to render the benefit determination.
(A different procedure applies for disability related claims – see the next paragraph). In the event the claim is denied, the Plan Administrator will disclose to you in writing the specific reasons for the denial, a reference to the specific
provisions of the Plan on which the determination is based, a description of additional material or information necessary for the claimant to perfect the claim and an explanation of why it is required, and information about the steps that must be
taken to submit a timely request for review, including a statement of your right to bring a civil action under Section 502(a) of ERISA following as adverse determination upon review. 

If your claim concerns disability benefits under the Plan, the Plan Administrator must notify you in writing within 45 days after you have
filed your claim in order to deny it. If special circumstances require an extension of time to process your claim, the Plan Administrator must notify you before the end of the 45-day period that

  

			
	KV Pharmaceutical Retirement Savings Plan	  	17            

 
your claim may take up to 30 days longer to process. If special circumstances still prevent the resolution of your claim, the Plan Administrator may then only take up to another 30 days after
giving you notice before the end of the original 30-day extension. If the Plan Administrator gives you notice that you need to provide additional information regarding your claim, you must do so within 45 days of that notice. 

 

	 	2.	Review Procedures (For Appeal of an Adverse Benefit Determination) 

 You may appeal the denial of your claim made under the procedures described above within 60 days after the date following your receipt of notification of the denied claim (a different procedure applies
for disability related claims – see the next paragraph) by filing a written request for review with the Plan Administrator. This written request may include comments, documents, records, and other information relating to your claim for
benefits. You shall be provided, upon your request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to your claim for benefits. The review will take into account all comments, documents,
records, and other information submitted by you relating to the claim, without regard to whether such information was submitted or considered in the initial benefit determination. Generally, the Plan Administrator will provide you with written
notice of the disposition of your claim on review within 60 days after receipt of your appeal by the Plan. If the Plan Administrator determines that special circumstances require an extension of time to process your claim, the Plan Administrator
will furnish written notice of the extension to the claimant prior to the expiration of the initial 60-day period. In no event shall such extension exceed a period of 60 days from the end of the initial period the Plan Administrator had to dispose
of your claim. The extension notice shall indicate the special circumstances requiring an extension of time and the date by which the Plan expects to render the benefit determination. (A different procedure applies for disability related claims
– see the next paragraph). In the event the claim on review is denied, the Plan Administrator will disclose to you in writing the specific reasons for the denial, a reference to the specific provisions of the Plan on which the determination is
based, a description of additional material or information necessary for the claimant to perfect the claim and an explanation of why it is required, and information about the steps that must be taken to submit a timely request for review, including
a statement of your right to bring a civil action under Section 502(a) of ERISA following as adverse determination upon review. 
 If your initial claim was for disability benefits under the Plan and has been denied by the Plan Administrator, you have 180 days from the date you receive notice of your denial in which to appeal that
decision. Your review will be handled completely independently of the findings and decision made regarding your initial claim and will be processed by an individual who is not a subordinate of the individual who denied your initial claim. If your
claim requires medical judgment, the individual handling your appeal will consult with a medical professional who was not consulted regarding your initial claim and who is not a subordinate of anyone consulted regarding your initial claim and
identify that medical professional to you. The Plan Administrator must notify you in writing within 45 days after you have filed your claim in order to deny it. If the Plan Administrator determines that special circumstances require an extension of
time to process your claim, the Plan Administrator will furnish written notice of the extension to the claimant prior to the expiration of the initial 45-day period. In no event shall such extension exceed a period of 45 days from the end of the
initial period the Plan Administrator had to dispose of your claim. The extension notice shall indicate the special circumstances requiring an extension of time and the date by which the Plan expects to render the benefit determination. 

The Plan Administrator shall notify you of the Plan’s benefit determination on review within a reasonable period of time, but not
later than 60 days after receipt of your request for review by the Plan, unless the Plan Administrator determines that special circumstances require an extension of time for processing the claim. If the Plan Administrator determines that an
extension of time for processing is required, written notice of the extension shall be furnished to you prior to the termination of the initial 60-day period. In no event shall such extension exceed a period of 60 days from the end of the initial
period. The extension notice shall indicate the special circumstances requiring an extension of time and the date by which the Plan expects to render the determination on review. 

The Plan Administrator shall provide you with written notification of a plan’s benefit determination on review. In the case of an
adverse benefit determination, the notification shall set forth, in a manner calculated to be understood by you – the specific reason or reasons for the adverse determinations, reference to the specific plan provisions on which the benefit
determination is based, a statement that you are entitled to receive, upon your request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to your claim for benefits. 

  

			
	KV Pharmaceutical Retirement Savings Plan	  	18            

  

	B.	Statement of ERISA Rights 

 As a
Participant in the Plan, you are entitled to certain rights and protections under ERISA. ERISA provides that all Plan Participants shall be entitled to: 
 Receive Information About Your Plan and Benefits 
  

	 	•	 	 Examine, without charge, at the Plan Administrator’s office and at other specified locations, such as worksites and union halls, all documents
governing the Plan, including insurance contracts and collective bargaining agreements, and a copy of the latest annual report (Form 5500 Series) filed by the Plan with the U.S. Department of Labor and available at the Public Disclosure Room of the
Employee Benefits Security Administration. 

  

	 	•	 	 Obtain, upon written request to the Plan Administrator, copies of documents governing the operation of the plan, including insurance contracts and
collective bargaining agreements, and copies of the latest annual report (Form 5500 Series) and updated Summary Plan Description. The Plan Administrator may make a reasonable charge for the copies. 

 

	 	•	 	 Receive a summary of the Plan’s annual financial report. The Plan Administrator is required by law to furnish each Participant with a copy of this
Summary Annual Report each year. 

  

	 	•	 	 Obtain a statement telling you the fair market value of your vested, accrued benefit, as of the date for which the benefits are reported, if you stop
working under the Plan now. If you do not have a right to a benefit under the plan, the statement will tell you how many more years you have to work to get a right to a benefit. This statement must be requested in writing and is not required to be
given more than once every twelve (12) months. The Plan must provide the statement free of charge. 

 Prudent Actions
by Fiduciaries 
 In addition to creating rights for Plan Participants, ERISA imposes duties upon the people who are responsible for the
operation of the employee benefit plan. The people who operate your Plan, called “fiduciaries” of the Plan, have a duty to do so prudently and in the interest of you, other Plan Participants and Beneficiaries. No one, including your
Employer, your union, or any other person, may fire you or otherwise discriminate against you in any way to prevent you from obtaining a retirement benefit or exercising your rights under ERISA. 

Enforce Your Rights 
 If your claim for a
benefit under the Plan is denied or ignored, in whole or in part, you have a right to know why this was done, to obtain copies of documents relating to the decision without charge, and to appeal any denial, all within certain time schedules. Under
ERISA, there are steps you can take to enforce the above rights. For instance, if you request a copy of plan documents or the latest annual report from the Plan and do not receive them within 30 days, you may file suit in a Federal court. The
Plan’s agent for legal service of process in the event of a lawsuit is the Plan Administrator. In such a case, the court may require the Plan Administrator to provide the materials and pay you up to $110 a day until you receive the materials,
unless the materials were not sent because of reasons beyond the control of the Plan Administrator. 
 If you have a claim for benefits which is
denied or ignored, in whole or in part, you may file suit in a state or Federal court. In addition, if you disagree with the Plan’s decision or lack thereof concerning the qualified status of a domestic relations order, you may file suit in
Federal court. If it should happen that Plan fiduciaries misuse the Plan’s money, or if you are discriminated against for asserting your rights, you may seek assistance from the U.S. Department of Labor, or you may file suit in a Federal court.
The court will decide who should pay court costs and legal fees. If you are successful, the court may order the person you have sued to pay these costs and fees. If you lose, the court may order you to pay these costs and fees, for example, if it
finds your claim frivolous. 
 Assistance with Your Questions 
 If you have any questions about your Plan, you should contact the Plan Administrator. If you have any questions about this statement or your rights under ERISA, or if you need assistance in obtaining
documents from the Plan Administrator, you should contact the nearest office of the Employee Benefits Security Administration, U.S. Department of Labor, listed in your telephone directory or the Division of Technical Assistance and Inquiries,
Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue N.W., Washington, D.C. 20210. You may also obtain certain publications about your rights and responsibilities under ERISA by calling the publications
hotline of the Employee Benefits Security Administration. 

  

			
	KV Pharmaceutical Retirement Savings Plan	  	19            

  

	
	XII. Services and Fees

 Fees and expenses charged under your Account will
impact your retirement savings, and fall into three basic categories. Investment fees are generally assessed as a percentage of assets invested, and are deducted directly from your investment returns. Investment fees can be in the form of
sales charges, loads, commissions, 12b-1 fees, or management fees. Certain of these Investment fees may not apply depending upon the funds and share classes available in the Plan. You can obtain more information about such fees from the documents
(e.g., a prospectus) that describe the investments available under your Plan and from Appendix A: Investment Options. Plan administration fees cover the day-to-day expenses of your Plan for recordkeeping, accounting, legal and trustee
services, as well as additional services that may be available under your Plan, such as daily valuation, telephone response systems, internet access to plan information, retirement planning tools, and educational materials. In some cases, these
costs are covered by investment fees that are deducted directly from investment returns. In other cases, these administrative fees are either paid directly by your Employer, or are passed through to the participants in the Plan, in which case a
recordkeeping fee will be deducted from your Account. Transaction-based fees are associated with optional services offered under your Plan, and are charged directly to your Account if you take advantage of a particular plan feature that may
be available, such as a Plan loan. For more information on fees associated with your Account, refer to your Account statement or speak with your Plan Administrator. 

  

			
	KV Pharmaceutical Retirement Savings Plan	  	20            

  

			
	Appendix A. Investment Options

 You have the opportunity to direct the
investments of your Account among the following investment funds: 
  

					
	Name	  	Fund Code	    	Fund Objective
	 Fidelity Advisor Stable Value Portfolio II
	  	0771	    	Seeks to preserve your principal investment while earning interest income. The FA Stable Value Portfolio will try to maintain a stable $1 unit price, but it cannot guarantee that it
will be able to do so. The yield of the FA Stable Value Portfolio will fluctuate.
			
	 Fidelity Advisor Intermediate Bond Fund Class A
	  	0261	    	Seeks to provide a high rate of income. In addition, the fund may seek capital appreciation when consistent with this primary objective.
			
	 PIMCO Total Return Fund Class A
	  	OLLN	    	To provide high total return that exceeds general bond market indices.
			
	 Fidelity Advisor Equity Income Fund Class A
	  	0246	    	Seeks to provide a yield from dividend and interest income which exceeds the composite dividend yield on securities comprising the S&P 500® . In addition, consistent with the primary objective of obtaining dividend and interest income, the fund will
consider the potential for achieving capital appreciation.
			
	 JPMorgan Small Cap Value Fund Class A
	  	OMKA	    	Seeks long-term capital growth primarily by investing in equity securities of small-capitalization companies.
			
	 Fidelity Advisor Dividend Growth Fund Class A
	  	0714	    	Seeks to provide capital appreciation.
			
	 JPMorgan Equity Index Fund Class A
	  	OMKG	    	Seeks to provide investment results that correspond to the aggregate price and dividend performance of securities in the Standard & Poor’s 500 Composite Stock Price Index
(“S&P 500 Index”).
			
	 Fidelity Advisor Small Cap Fund Class A
	  	0294	    	Seeks to provide long-term growth of capital.
			
	 Fidelity Advisor Equity Growth Fund Class A
	  	0245	    	Seeks to provide capital appreciation.
			
	 T. Rowe Price Growth Stock Fund Class R
	  	OSNF	    	Seeks to provide long-term growth of capital and, secondarily, increasing dividend income by investing primarily in common stocks of well-established growth
companies.
			
	 Fidelity Advisor Mid Cap Fund Class A
	  	0251	    	Seeks to provide long-term growth of capital.
			
	 BlackRock International Opportunities Fund Class A
	  	OSUC	    	Seeks to provide long-term capital appreciation.
			
	 Fidelity Advisor Diversified International Fund Class A
	  	0731	    	Seeks to provide capital growth.
			
	 Thornburg International Value Fund Class R3
	  	OSLU	    	Seeks long-term capital appreciation.
			
	 Fidelity Advisor Financial Services Fund Class A
	  	0183	    	Seeks to provide capital appreciation.
			
	 Fidelity Advisor Health Care Fund Class A
	  	0177	    	Seeks to provide capital appreciation.

  

			
	KV Pharmaceutical Retirement Savings Plan	  	21            

  

					
	Fidelity Advisor Technology Fund Class A	  	0187	  	Seeks to provide capital appreciation.
			
	KV A Stock Fund	  	TRME	  	Seeks to provide investment returns linked to the market price of, and any dividends paid on, KV A Stock Fund common stock. The return earned on stock held within the plan will
include: Appreciation or depreciation in the market value of company stock; Any dividends paid on company stock; All interest earned on short-term investments.
			
	Fidelity Advisor Freedom Income Fund®
Class A	  	1205	  	The fund is designed for those investors already in retirement. The fund seeks high total return with a secondary objective of principal appreciation.
			
	Fidelity Advisor Freedom 2005 Fund®
Class A	  	1291	  	The fund is designed for investors expecting to retire around the year indicated in the fund name. The fund seeks high total return with a secondary objective of principal
preservation as the fund approaches its target date and beyond.
			
	Fidelity Advisor Freedom 2010 Fund®
Class A	  	1184	  	The fund is designed for investors expecting to retire around the year indicated in the fund name. The fund seeks high total return with a secondary objective of principal
preservation as the fund approaches its target date and beyond.
			
	Fidelity Advisor Freedom 2015 Fund®
Class A	  	1296	  	The fund is designed for investors expecting to retire around the year indicated in the fund name. The fund seeks high total return with a secondary objective of principal
preservation as the fund approaches its target date and beyond.
			
	Fidelity Advisor Freedom 2020 Fund®
Class A	  	1189	  	The fund is designed for investors expecting to retire around the year indicated in the fund name. The fund seeks high total return with a secondary objective of principal
preservation as the fund approaches its target date and beyond.
			
	Fidelity Advisor Freedom 2025 Fund®
Class A	  	1302	  	The fund is designed for investors expecting to retire around the year indicated in the fund name. The fund seeks high total return with a secondary objective of principal
preservation as the fund approaches its target date and beyond.
			
	Fidelity Advisor Freedom 2030 Fund®
Class A	  	1194	  	The fund is designed for investors expecting to retire around the year indicated in the fund name. The fund seeks high total return with a secondary objective of principal
preservation as the fund approaches its target date and beyond.
			
	Fidelity Advisor Freedom 2035 Fund®
Class A	  	1307	  	The fund is designed for investors expecting to retire around the year indicated in the fund name. The fund seeks high total return with a secondary objective of principal
preservation as the fund approaches its target date and beyond.
			
	Fidelity Advisor Freedom 2040 Fund®
Class A	  	1199	  	The fund is designed for investors expecting to retire around the year indicated in the fund name. The fund seeks high total return with a secondary objective of principal
preservation as the fund approaches its target date and beyond.

  

			
	KV Pharmaceutical Retirement Savings Plan	  	22            

  

							
	 Fidelity Advisor Freedom 2045 Fund® Class A
	  	 	1599	  	    	The fund is designed for investors expecting to retire around the year indicated in the fund name. The fund seeks high total return with a secondary objective of principal
preservation as the fund approaches its target date and beyond.
			
	 Fidelity Advisor Freedom 2050 Fund® Class A
	  	 	1605	  	    	The fund is designed for investors expecting to retire around the year indicated in the fund name. The fund seeks high total return with a secondary objective of principal
preservation as the fund approaches its target date and beyond.

 If you have not supplied investment instructions, your Employer
has directed that your contributions to the plan will be invested, based upon your date of birth, in the Fidelity Advisor Freedom Funds described in the above table of this Appendix A. These funds are subject to the volatility of the financial
markets and may be subject to the additional risks associated with investing in high yield, small cap and foreign securities including the risk of loss of your principal investment. 

You may redirect the investment of your future contributions or exchange your existing Account balance among available investment
options by calling 1-800-294-4015 on any business day between 8:30 AM (ET) and 8:00 PM (ET). This is an automated telephone service and you should follow the telephonic instructions or you can press the appropriate number if you want to talk to a
Fidelity telephone representative. All representative-assisted calls will be recorded for your protection. You may call the telephone number virtually 24 hours a day, seven days a week to check Account balances, prices, yields or obtain investment
information. You may also use the internet to redirect the investment or your future contributions or exchange your existing Account balance by logging onto NetBenefits® at www.netbenefits.com. Please contact the Plan Administrator for further information. 

Exchanges received and confirmed before the close of the market (usually 4:00 PM (ET)) will be posted on that business day based upon
the closing price of the affected investment(s). Exchanges received and confirmed after the market close will be processed on the next business day based upon the closing price of the affected investment(s) on that next business day. Requests for
exchanges, purchases and sales of units of the Company Stock Fund, if received by 4:00 PM on any business day, shall be processed on that same business day provided there is sufficient liquidity. Such transactions shall otherwise be processed on the
next business day on which there is available liquidity sufficient to process the request. The Stock Fund shall be closed to sales or purchases of units, as applicable, on any date on which trading in the Employer stock has been suspended or
substantial purchase or sale orders are outstanding and cannot be executed. The minimum exchange is the lesser of $250 or 100% of your Account balance in the investment option. If your exchange is less than $250 then it may only be exchanged into
one investment option. A confirmation of your change in the investment of your future contributions or your exchange of an existing fund will be sent to you within five business days or an online confirmation will be displayed on NetBenefits®. Fidelity reserves the right to change, restrict, or terminate exchange procedures to protect mutual fund
shareholders. 
 Exchanges from the Fidelity Advisor Stable Value Portfolio - Class II to certain bond or money market funds (considered
“competing funds”), must first be exchanged to an option that is “non-competing”, such as an equity mutual fund. Ninety-days after your exchange, you can then exchange your money to a “competing fund” by calling the
Fidelity Participant Services Group Representative at 1-800-294-4015. You may also contact your Plan Administrator for more information. While this requirement may seem restrictive, it is typically imposed by issuers, such as insurance companies,
banks, or other approved financial institutions as a condition for issuing investment contracts to retirement plans. You may also contact your Plan Administrator for more information. 

  

			
	KV Pharmaceutical Retirement Savings Plan	  	23Employment Agreement Between Company and Thomas S. McHugh

 Exhibit 10.31 
 EMPLOYMENT AGREEMENT 
 EMPLOYMENT AGREEMENT (“Agreement”),
dated as of July 6, 2010 (the “Effective Date”), made and entered into by and between K-V Pharmaceutical Company, a Delaware corporation (the “Company”), and Thomas S. McHugh (the “Executive”).

 RECITALS 
 WHEREAS, the Company desires to employ the Executive to provide services pursuant to the terms and conditions of this Agreement; and 

WHEREAS, the Executive desires to provide such services to the Company pursuant to the terms and conditions of this Agreement.

 NOW, THEREFORE, in consideration of the premises and the mutual covenants contained in this Agreement, the parties
agree as follows: 
 1. Employment Duties. 
 (a) Employment. The Company hereby agrees to employ the Executive, and the Executive hereby agrees to serve, as Chief Financial Officer/Treasurer, and as an executive officer of the Company.

 (b) Duties. The Executive will have full authority to act on behalf of the Company in a manner that is consistent
with his or her position. The Executive shall have such power and authority and perform such duties, functions and responsibilities as are associated with and incident to his or her position, and as the Board of Directors of the Company (the
“Board”) may from time to time require of him or her; provided, however, that such authority, duties, functions and responsibilities are generally commensurate with the power, authority, duties, functions and responsibilities
generally performed by Chief Financial Officers and Treasurers of public companies which are similar in size and nature to, and the financial position of, the Company. During the Term (as defined herein), the Executive shall: 

(1) devote substantially all of his or her business time, attention and abilities to the business of the Company
(including its subsidiaries or affiliates, when so required); and 
 (2) faithfully serve the Company and use his
or her best efforts to promote and develop the interests of the Company, 
 2. Term of Employment. Unless earlier
terminated as provided in Section 4 below, the term of the Executive’s employment hereunder shall be for a period commencing on 

  

											
	KV:	 	
 

	  	Executive:	 	
 

	  	                1	  	

 
the Effective Date and expiring on December 31, 2011 (the “Term”); provided, however, the Term will be automatically extended for successive periods of twelve
(12) months, unless either the Executive or the Company gives written notice to the other at least one hundred eighty (180) days prior to the expiration of the then current Term and that he, she or it, as the case may be, does not wish to
extend the Term for an additional twelve-month period. In addition, if a Change of Control (as defined herein) shall occur during the Term, this Agreement shall not expire prior to the second anniversary of the date of consummation of the Change of
Control, and the Term shall automatically be extended to such second anniversary, as necessary, to give effect to this provision as of such consummation date. 
 3. Compensation. Subject to the terms of this Agreement and until the termination of the Term as provided in Section 2, the Company shall pay compensation and provide benefits to the Executive
as follows: 
 (a) Base Salary. The Company shall pay to the Executive a base salary of $300,000 per annum during the
Term (the “Base Salary”). The Base Salary shall be reviewed no less frequently than annually and may be increased at the discretion of the Board or the Compensation Committee of the Board (the “Committee”), as
applicable. Except as otherwise agreed in writing by the Executive, the Base Salary shall not be reduced from the amount previously in effect. The Executive shall receive his or her salary in equal installments in accordance with the Company’s
payroll practices in effect from time to time. 
 (b) Benefit Continuation and Perquisites. The Executive shall
participate during the Term in such pension, life insurance, health, disability and medical insurance plans, and such other employee benefit plans and programs for the benefit of employees of the Company, as well as any executive perquisites
provided to executives with the prior approval of the Committee, as may be maintained from time to time during the Term, in each case to the extent and in the manner available to other executives or officers of the Company of comparable level or
position and subject to the terms and provisions of such plans or programs. 
 (c) Annual Cash Incentive. During the
Term, the Executive shall be eligible to receive an annual cash bonus based on performance objectives established by the Committee each year (the “Annual Cash Incentive”), provided that the Company, in its sole discretion, elects to
put into effect an annual cash incentive plan or similar policy with respect to any applicable year. The Executive’s target Annual Cash Incentive amount will be the percentage of Base Salary designated as the target by the Committee, equal to a
percentage of the Base Salary then in effect for each applicable year, which percentage may be increased or decreased by the Committee in its discretion. Notwithstanding the preceding, Executive’s Annual Cash Incentive, if any, may be below
(including zero), at, or above the target based upon the achievement of the performance objectives. In addition to the Annual Cash Incentive, the Company, in its sole discretion, may pay an additional bonus to the Executive as determined by the
Company in accordance with the Company’s incentive plan or policies as in effect from time to time. 

  

											
	KV:	 	
 

	  	Executive:	 	
 

	  	                2	  	

 (d) Equity Incentives. From time to time as so approved by the Board, the Executive
may become eligible for the grant of equity awards to acquire shares of the Company’s common stock, par value of $.01 per share (the “Shares”), pursuant to and subject to the terms and conditions of the Company’s equity
incentive plan in place from time to time and any equity award agreement entered into by the Executive and the Company. The terms of any applicable equity award agreement, as it may be amended from time to time, and any applicable Company equity
incentive plan shall govern the treatment of the Executive’s equity awards, if any, upon a termination of the Executive’s employment. 
 (e) Reimbursement of Expenses. The Company shall reimburse the Executive for all reasonable expenses incurred personally by him or her on behalf of the Company in accordance with the policies and
procedures applicable to similarly situated executives of the Company. 
 (f) Vacation. The Executive shall be entitled
to not less than twenty (20) paid vacation days during each year of the Term at such times as are mutually agreed upon by the Executive and the Company, subject to annual increases in accordance with the Company’s vacation policy. The
Company’s vacation policy, as in effect on the relevant date, shall govern the treatment of Executive’s use, accrual, carry-over and cashout, if any, of paid vacation days. 

(g) Committee Action or Approval. References in this Agreement to actions and approvals by the Committee shall mean those actions
and approvals by the Committee that have been ratified or approved by the Board to the extent that a Board ratification or approval is required by the Company’s certificate of incorporation or by-laws. 

4. Termination or Resignation; Compensation Payable Upon Termination or Resignation. 

(a) Earlier Termination of Term. The Executive’s employment with the Company may terminate prior to the expiration of the
Term as follows: 
 (1) The Company may terminate the Executive’s employment hereunder for Cause (as defined below)
immediately upon written notice to the Executive, and it may terminate Executive’s employment hereunder without Cause or upon the Executive’s Disability (as defined below) upon giving the Executive at least thirty (30) days’
advance written notice; 
 (2) The Executive’s employment hereunder shall terminate automatically upon his or her death
without any further notice or action required; 

  

											
	KV:	 	
 

	  	Executive:	 	
 

	  	                3	  	

 (3) Other than upon Relocation (as defined below), the Executive may resign his or her
employment hereunder upon giving the Company at least one hundred twenty (120) days’ advance written notice; or 

(4) The Executive may resign from his or her employment with the Company upon Relocation, as set forth in Section 4(d) below.

 The Executive’s last day of employment with the Company, whether upon expiration of the Term or earlier termination as
provided above, shall be the “Termination Date”. During some or all of any notice period provided above, the Company may, in its sole discretion, direct the Executive to perform some or none of his or her regular duties, provided
that, notwithstanding any election by the Company to direct the Executive to perform none of his or her regular duties during the notice period, the Executive shall be entitled to compensation at the Base Salary for the entire notice period.

 (b) Definition of “Cause”. As used herein, “Cause” shall mean, during the Term, the
occurrence of any of the following: 
 (1) commission of a criminal act in respect of the Executive’s employment or
conviction of, or plea of guilty or no contest to, a felony; 
 (2) willful misconduct, significant dishonesty, gross
negligence or breach of fiduciary duty in respect of the Executive’s employment; 
 (3) continuing neglect or failure of
the Executive to perform the duties reasonably assigned to the Executive by the Company and after notice from the Company of such neglect or failure, the Executive’s failure to cure such neglect or failure within thirty (30) days of such
notice, provided that the Executive shall be provided only one thirty (30) day cure period for the same neglect or failure. 
 Any determination that the Executive should be terminated for Cause may be made during or after the Term of this Agreement and must be approved by no fewer than sixty-six and two-thirds
(66- 2/3) percent of the directors then serving on
the Board; provided, however, that if the Executive is a member of the Board, he or she shall not participate in such vote, and a determination of cause may be made by no fewer than sixty-six and two-thirds (66- 2/3) percent of the remaining directors then serving on the Board.

 (c) Definition of “Disability”. The Executive shall be considered to have a
“Disability” if he or she satisfies the definition set forth in the Company’s long-term disability benefit plan in which he or she is enrolled at the time of the determination or, if there is no such plan, he or she is unable to
perform his or her duties under this Agreement for a continuous period of six (6) months for reasons of health, and, in the opinion of a physician appointed by the Company, such disability will continue for a prolonged period of time.

  

											
	KV:	 	
 

	  	Executive:	 	
 

	  	                4	  	

 (d) Definition of “Relocation”. As used herein, “Relocation”
shall mean the relocation of the Executive’s principal place of employment to a place more than seventy-five (75) miles from the Executive’s principal place of employment as of the Effective Date without the Executive’s prior
written consent. 
 In order to invoke a termination for Relocation, the Executive must provide written notice to the Company within ninety
(90) days of the occurrence of an event that constitutes Relocation, the Company must have thirty (30) days to cure the event and Executive must terminate his or her employment, if at all, within thirty (30) days of the end of the
thirty (30) day cure period if the Company has failed to implement a cure. 
 (e) Definition of “Change of
Control” and “Change of Control Event”. 
 As used herein, “Change of Control” shall mean
the occurrence of any of the following: 
 (1) an acquisition by any individual, entity or group (within the meaning of
Section 13d-3 or 14d-l of the Securities Exchange Act of 1934, as amended (the “Act”)) (a “Person”) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Act) of more than 50% of the
combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors to the Board (the “Outstanding Company Voting Securities”); provided, however, that
“Change of Control” shall not include (i) the acquisition by any corporation pursuant to a reorganization, merger, consolidation or similar corporate transaction (in each case, a “Corporate Transaction”) if, pursuant
to such Corporate Transaction, the beneficial owners of the outstanding Shares and Outstanding Company Voting Securities immediately prior to such Corporate Transaction will beneficially own, directly or indirectly, more than fifty-one percent
(51%) of, respectively, the outstanding shares of common stock of the corporation resulting from such Corporate Transaction and the combined voting power of the outstanding voting securities of such corporation entitled to vote generally in the
election of directors, in substantially the same proportions as their ownership, immediately prior to such Corporate Transaction, of the outstanding Shares and Outstanding Company Voting Securities, as the case may be, and (ii) for the
avoidance of doubt, any acquisition after the date hereof by any Person who beneficially owned 50% or more of the combined voting power of the Outstanding Company Voting Securities prior to the date hereof; or 

(2) the consummation of a Corporate Transaction; excluding, however, such a Corporate Transaction pursuant to which the beneficial
owners of the outstanding Shares and Outstanding Company Voting Securities immediately prior to such Corporate Transaction will beneficially own, directly or indirectly, more than fifty-one percent

  

											
	KV:	 	
 

	  	Executive:	 	
 

	  	                5	  	

 
(51%) of, respectively, the outstanding shares of common stock of the corporation resulting from such Corporate Transaction and the combined voting power of the outstanding voting securities of
such corporation entitled to vote generally in the election of directors, in substantially the same proportions as their ownership, immediately prior to such Corporate Transaction, of the outstanding Shares and Outstanding Company Voting Securities,
as the case may be; or 
 (3) the approval of the stockholders of the Company of (A) a complete liquidation or dissolution
of the Company or (B) the sale or other disposition of all or substantially all the assets of the Company; excluding, however, such a sale or other disposition to a corporation with respect to which, following such sale or other disposition,
more than fifty-one percent (51%) of the then outstanding shares of common stock of such corporation and the combined voting power of the then outstanding voting securities of such corporation entitled to vote generally in the election of
directors will be then beneficially owned, directly or indirectly, by the individuals and entities who were the beneficial owners, respectively, of the outstanding Shares and Outstanding Company Voting Securities immediately prior to such sale or
other disposition in substantially the same proportion as their ownership, immediately prior to such sale or other disposition, of the outstanding Shares and Outstanding Company Voting Securities, as the case may be. 

A “Change of Control Event” shall mean the earlier of (i) a Change of Control, or (ii) the execution and
delivery by the Company of an agreement providing for a Change of Control. 
 (f) Payments to the Executive Upon Termination
of Employment. 
 (1) In the event that the Executive’s employment hereunder terminates for any reason whatsoever
(including for Cause), the Company shall pay to the Executive: (i) an amount equal to his or her accrued but unpaid Base Salary as of the Termination Date; (ii) any incentive compensation awarded to the Executive as of the Termination Date
for the year preceding the year of termination but not yet paid; (iii) reimbursement for any unreimbursed business expenses incurred in accordance with Section 3(e) prior to the Termination Date; (iv) to the extent required by the
Company’s vacation policy as in effect on the Termination Date, any accrued but unpaid vacation pay; and (v) any amounts or benefits due under any equity or benefit plan, grant or program in accordance with the terms of said plan, grant or
program but without duplication, in each case as of the Termination Date (such amounts specified in clauses (i), (ii), (iii), (iv) and (v) referred to as “Accrued Obligations”). 

(2) In the event that: (i) the Executive’s employment hereunder is terminated by the Company without Cause, or (ii) the
Executive terminates his or her employment upon Relocation, in addition to the Accrued Obligations, and subject to the Executive’s continued compliance with the provisions of Section 7 below, the Company shall also pay or provide to the
Executive: (A) an amount equal to one (1) times the sum of (x) Executive’s then-current Base Salary plus (y) Executive’s target Annual Cash Incentive for the 

  

											
	KV:	 	
 

	  	Executive:	 	
 

	  	                6	  	

 
then-current year of the Term (provided, however, solely for purposes of this Section 4(f)(2), that in the event the Company has not adopted an annual cash incentive plan or similar policy
with respect to any applicable year, the Annual Cash Incentive for such year shall be an amount equal to 25 percent of the Executive’s then-current Base Salary; and, provided further, that if such termination occurs after the initial term of
this Agreement, the average of the Annual Cash Incentive earned by the Executive for the two calendar years immediately preceding the year of the Termination Date shall replace “target Annual Cash Incentive”), payable over a period of
twelve (12) months in equal bi-weekly installments, less deductions as required by law, the first installment to be paid on the first regular payroll date of the Company after the later of the date on which the general release of claims
provided for in Section 4(g) below is executed by the Executive and delivered to the Company and the date on which any revocation period in the general release of claims has expired without its being revoked (the “Release Effective
Date”) (the first such cash payment shall include payment of all amounts that otherwise would have been due prior to the Release Effective Date under the terms of this Agreement applied as though such payments commenced immediately upon the
Termination Date); and (B) continued participation in the Company’s plans providing medical, dental, and vision insurance benefits, as applicable for the eighteen (18) month period following the Termination Date; provided that, such
welfare plan coverage shall cease if the Executive obtains other full-time employment providing for comparable welfare plan benefits prior to the expiration of such eighteen (18) month period. Notwithstanding the foregoing, in the event that
Executive’s employment with the Company is terminated without Cause by the Company or upon Relocation by the Executive, in either case, following a Change of Control Event that results in a completed Change of Control, the Executive will be
entitled to the payments provided for in Section 4(f)(3) below, at the time or times specified in Section 4(f)(3) below, reduced by any payments already made to the Executive pursuant to this Section 4(f)(2). 

(3) In the event that the Executive’s employment with the Company is terminated without Cause by the Company or upon Relocation by
the Executive within twelve (12) months after the occurrence of a Change of Control, then in addition to the Accrued Obligations and in lieu of any other termination payment that would otherwise be payable to Executive hereunder, and subject to
the Executive’s continued compliance with the provisions of Section 7 below, the Company shall pay or provide to the Executive (A) an amount equal to the sum of (a) an amount equal to one (1) times the sum of (x) the
Executive’s then-current Base Salary, plus (y) Executive’s then-current target Annual Cash Incentive for the then-current year of the Term (provided, however, solely for purposes of this Section 4(f)(3), that in the event the
Company has not adopted an annual cash incentive plan or similar policy with respect to any applicable year, the Annual Cash Incentive for such year shall be an amount equal to 25 percent of the Executive’s then-current Base Salary; and,
provided further, that if such termination occurs after the initial term of this Agreement, the average of the Annual Cash Incentives earned by the Executive for the two calendar years immediately preceding the year of the Termination Date shall
replace “target Annual Cash Incentive”), payable in a lump sum no later than ten (10) days following the Release Effective Date, and (B) continued participation in the Company’s plans providing medical, dental, and vision
insurance benefits (as applicable) for the eighteen 

  

											
	KV:	 	
 

	  	Executive:	 	
 

	  	                7	  	

 
(18) month period following the Termination Date; provided that, such welfare plan coverage shall cease if the Executive obtains other full-time employment providing for comparable welfare plan
benefits prior to the expiration of such eighteen (18) month period. 
 (4) Notwithstanding anything herein to the
contrary, in the event that following a termination by the Company without Cause or a termination by the Executive upon Relocation, it is determined, in accordance with the procedures set forth in Section 4(b) above, that the Executive
committed acts during the Term that constitute Cause, the payments provided for in Sections 4(f)(2) or (3) shall immediately cease. 
 (g) General Release of Claims. No payments will be made or benefits will be provided under Sections 4(f)(2) or (3), unless (x) the Executive first executes and delivers to the Company a
general release of claims in substantially the same form as attached as Appendix A to this Agreement, and (y) to the extent any portion of such general release of claims is subject to the seven-day revocation period prescribed by the Age
Discrimination in Employment Act, as amended, or to any similar revocation period in effect on the Termination Date, such revocation period has expired without the general release of claims being revoked. Such general release of claims shall be
provided to Executive within five (5) days of his or her Termination Date and he or she shall execute the general release of claims within thirty (30) days. The Executive will forfeit all rights to the severance payments if the Executive
fails to execute and deliver to the Company the general release of claims within 30 days of its delivery to the Executive or the Executive revokes the general release of claims. In the event the last sentence of Section 4(f)(2) becomes
effective, Executive shall be required to execute, deliver to the Company, and not revoke, a second general release of claims in the manner specified by this Section 4(g) in order to receive the payments and benefits described in
Section 4(f)(3). 
 (h) In no event shall Executive be obligated to seek other employment or take any other action by way
of mitigation of the amounts payable to Executive under any of the provisions of this Agreement, and such amounts shall not be reduced whether or not Executive obtains other employment. 

5. Maximum Payment. In the event Executive becomes entitled to any amounts or benefits payable in connection with a Change of
Control or other change of control (whether or not such amounts are payable pursuant to this Agreement) (the “Total Payments”), if any of such Total Payments are subject to the tax (the “Excise Tax”) imposed by
Section 4999 of the Internal Revenue Code of 1986, as amended (the “Code”) (or any similar federal, state or local tax that may hereafter be imposed), the Company shall pay to Executive an additional amount (the
“Gross-Up Payment”) such that the net amount retained by Executive, after deduction of any Excise Tax on the Total Payments and any federal, state and local income tax and Excise Tax upon the Gross-Up Payment, shall be equal to the
Total Payments; provided, however that in the event the aggregate value of the Total Payments exceeds three times the Executive’s “base amount,” as defined in Section 280G(b)(3) of the Code, (the “Parachute
Threshold”) by less than 10%, one or more of the Total Payments shall be reduced so that the 

  

											
	KV:	 	
 

	  	Executive:	 	
 

	  	                8	  	

 
aggregate value of the Total Payments is $1.00 less than the Parachute Threshold. The Company shall reduce or eliminate the Total Payments by first reducing or eliminating the portion of the
Total Payments which are payable in cash and then by reducing or eliminating Total Payments which are not payable in cash, in each case in reverse order beginning with payments or benefits which are to be paid the farthest in time from the Change of
Control. The preceding sentence shall take precedence over the provisions of any other plan, arrangement or agreement governing the Executive’s rights and entitlements to any benefits or compensation. For the avoidance of doubt, in no event
shall the Company be required to pay to Executive any amount under this Section 5 with respect to any taxes or interest that may arise as a result of Section 409A (as defined herein). Any Gross-Up Payment, as determined pursuant to this
Section 5 shall be paid by the Company to the Executive within five days of receipt of the determination of liability for an Excise Tax, but in no event later than the end of the taxable year following the taxable year in which the related
taxes are remitted by the Executive. 
 6. Section 409A. 

(a) With respect to payments under this Agreement, for purposes of Section 409A of the Code (“Section 409A”), each
severance payment and COBRA continuation reimbursement payment will be considered one of a series of separate payments. 
 (b)
The Executive will be deemed to have a termination of employment for purposes of determining the timing of any payments that are classified as deferred compensation only upon a “separation from service” within the meaning of
Section 409A. 
 (c) If at the time of Executive’s separation from service, (i) Executive is a specified
employee (within the meaning of Section 409A and using the identification methodology selected by the Company from time to time), and (ii) the Company makes a good faith determination that an amount payable hereunder constitutes deferred
compensation (within the meaning of Section 409A) the payment of which is required to be delayed pursuant to the six-month delay rule set forth in Section 409A in order to avoid taxes or penalties under Section 409A, then the Company
will not pay such amount on the otherwise scheduled payment date but will instead pay it in a lump sum on the first business day after such six-month period, together with interest for the period of delay, compounded annually, equal to the prime
rate (as published in the Wall Street Journal) in effect as of the dates the payments should otherwise have been provided. 

(d) Any amount that Executive is entitled to be reimbursed under this Agreement will be reimbursed to Executive as promptly as practical
and in any event not later than the last day of the calendar year after the calendar year in which the expenses are incurred, and the amount of the expenses eligible for reimbursement during any calendar year will not affect the amount of expenses
eligible for reimbursement in any other calendar year. 

  

											
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	  	Executive:	 	
 

	  	                9	  	

 (e) Whenever a payment under this Agreement specifies a payment period with reference to a
number of days (e.g., “payment shall be made within thirty (30) days following the date of termination”), the actual date of payment within the specified period shall be within the sole discretion of the Company. 

(f) Notwithstanding any other provision of this Agreement to the contrary, in no event shall any payment under this Agreement that
constitutes “deferred compensation” for purposes of Section 409A be subject to offset, counterclaim or recoupment by any other amount payable to the Executive unless otherwise permitted by Section 409A. 

(g) To the extent the Executive would be subject to the additional 20% tax imposed on certain deferred compensation arrangements
pursuant to Section 409A as a result of any provision of this Agreement, such provision shall be deemed amended to the minimum extent necessary to avoid application of such tax and the parties shall promptly execute any amendment reasonably
necessary to implement this Section 6. The Executive and the Company agree to cooperate to make such amendments to the terms of this Agreement as may be necessary to avoid the imposition of penalties and additional taxes under Section 409A
to the extent possible; provided however, that the Company agrees that any such amendment shall provide the Executive with economically equivalent payments and benefits, and the Executive agrees that any such amendment will not materially increase
the cost to, or liability of, the Company with respect to any payments. 
 (h) Notwithstanding the foregoing, for purposes of
the payment of any deferred compensation to Executive, an event shall not be considered to be a Change of Control hereunder unless such event is also a “change in ownership,” a “change in effective control” or a “change in
the ownership of a substantial portion of the assets” of the Company within the meaning of Section 409A. 
 7.
Protection of the Company’s Interests. 
 (a) The parties agree that as of the Effective Date, the business of the
Company was the development, manufacture, licensing and sale of pharmaceutical products using drug delivery technologies (hereafter “the business of the Company”). Executive agrees that during the thirty-six (36) consecutive months
immediately following the Termination Date, regardless of how, when or why the Executive’s employment ends, Executive will not in any manner or in any capacity, directly or indirectly, for himself or any other person or entity, actually or
attempt to do any of the following: 
 (1) Perform any of the same or similar responsibilities as Executive performed for the
Company on behalf of a competitor that engages in the business of the Company. 

  

											
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	  	Executive:	 	
 

	  	                10	  	

 (2) Solicit, contact, divert, interfere with or take away any customer of the Company
and/or any of its parents, subsidiaries or affiliates (collectively, the “Company Entities,” and individually, a “Company Entity”) that has conducted business or negotiations with any Company Entity during the twelve
(12) months immediately preceding the Termination Date. 
 (3) Interfere with any of the suppliers of any Company Entity,
including, without limitation, reducing in any material way the willingness or capability of any supplier to continue supplying any Company Entity with their present or contemplated requirements. 

(4) Solicit or interfere with any Company Entity’s relationship with any of its employees or agents, or provide the names of any
Company Entity’s employees or agents, to any third party. 
 (5) Acquire any interest in any business that markets or
sells any product or product line that is competitive with any product or product line the Company sold during the twelve (12) months immediately preceding the termination of employment, except as permitted in Section 8 below. 

(b) Executive further agrees that he will not engage in any of the activities listed above while employed by the Company. 

(c) Executive acknowledges and agrees that his experience, knowledge and capabilities are such that he can obtain employment in
unrelated pharmaceutical, chemical, nutritional, food, industrial, household, confectionery or other businesses, and that the enforcement of this Section 7 by way of injunction would not prevent Executive from earning a livelihood. Executive
further agrees that if he has any question(s) regarding the scope of activities restricted by this Section 7, he will, to avoid confusion or misunderstanding, submit the question(s) in writing to the Director, Human Resources of the Company for
a written response. Executive additionally agrees to promptly inform and keep the Company advised of the identity of his employer (including any unit or division to which Executive is assigned), his work location, and his title and work
responsibilities during the period covered by this Section 7. 
 (d) Executive agrees to fully disclose the terms of this
Agreement to any person or entity by which or with whom he may hereafter become employed or to which he may hereafter render services, and agrees that the Company may, if desired, send a copy of this Agreement, or otherwise make the provisions
hereof known, to any such entity. 
 (e) In the event of a breach by Executive of any of the terms of Section 7, the
period of time the obligations hereunder apply will be automatically extended for a period of time equal to the length of time Executive is in breach. 

  

											
	KV:	 	
 

	  	Executive:	 	
 

	  	                11	  	

 (f) The Executive recognizes and acknowledges that in the course of the Executive’s
employment with the Company the Executive has obtained, or may obtain, confidential information, whether specifically designated as such or not, and the Executive agrees to maintain in confidence any confidential information obtained by or from the
Company and will not, during the Term or any time thereafter, either directly or indirectly, disclose or use confidential information except with the prior written consent of the Company or until such confidential information will be in the public
domain (other than as a result of an unauthorized disclosure by the Executive). For the avoidance of doubt, the parties agree that this Section 7(f) shall survive the termination or expiration of this Agreement for any reason. 

(g) The Executive agrees not to publicly or privately disparage the Company or any of the Company’s products, services, divisions,
affiliates, related companies or current or former officers, directors, trustees, employees, agents, administrators, representatives or fiduciaries. The Company agrees that it will not issue any official statements disparaging the Executive and will
instruct its officers not to disparage the Executive. Notwithstanding the foregoing, neither the Executive nor the Company will be restricted from providing information about the other as required by a court or governmental agency or by applicable
law. Further, the Company and the Executive shall not be restricted from reporting information regarding his or her performance while employed by the Company to internal or external auditors, special counsel or investigators, any applicable
enforcement agencies, regulatory agencies, insurance carriers or in litigation involving the Executive or the Company. The parties agree that this Section 7(g) shall survive the termination or expiration of this Agreement for any reason.

 (h) Remedies. 
 (i) The Executive acknowledges that a breach of any of the covenants contained in Sections 7(a), (f) or (g) may result in material irreparable injury to the Company for which there is no
adequate remedy at law, that it will not be possible to measure damages for such injury precisely and that, in the event of such a breach or threat thereof, the Company shall be entitled to a temporary restraining order and/or a preliminary or
permanent injunction, restraining the Executive from engaging in such prohibited activities or such other relief as may be required specifically to enforce any of the covenants contained therein. Nothing herein shall be construed as prohibiting the
Company from pursuing any other remedies for such breach or threatened breach, including, without limitation, terminating payments to the Executive under Sections 4(f)(2) and (3). 

(ii) The restrictions set forth in Sections 7(a), (f) and (g) are considered by the parties hereto to be reasonable for the
purposes of protecting the business of the Company, However, if any such restriction is found by a court of competent jurisdiction to be unenforceable because it extends for too long a period of time or over too great a range of activities or in too
broad a geographic area, it is the intention of the parties that such restriction shall be interpreted to extend only over the maximum period of time, range of activities or geographic area as to which it may be enforceable. 

  

											
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	  	Executive:	 	
 

	  	                12	  	

 8. Investment Securities. Nothing in this Agreement shall limit the right of the
Executive to hold or acquire the stock or other investment securities of any business entity that is registered on a national securities exchange or regularly traded on a generally recognized over-the-counter market, so long as the Executive’s
interest in any such business entity does not exceed five percent (5%) of such entity’s ownership. 
 9.
Indemnification. The Company agrees to indemnify, defend and hold harmless the Executive from and against any and all liabilities to which he or she may be subject as a result of his or her employment hereunder (as a result of his or her
service as an officer or director of the Company or as an officer or director of any of its subsidiaries or affiliates), as well as the costs, including attorney’s and other professional fees and disbursements, of any legal action brought or
threatened against him or her as a result of such employment in accordance with the indemnification policies of the Company to the fullest extent permitted by, and subject to the limitations of, applicable corporate law. 

10. Arbitration. 
 (a) General. Except for an action for equitable relief that is permitted to be sought pursuant to Section 7(h), any controversy, dispute, or claim between the parties to this Agreement,
including any claim arising out of, in connection with, or in relation to the formation, interpretation, performance or breach of this Agreement shall be settled exclusively by arbitration, before a single arbitrator, in accordance with this
Section 10 and the then most applicable rules of the American Arbitration Association. Judgment upon any award rendered by the arbitrator may be entered by any state or federal court having jurisdiction thereof. Such arbitration shall be
administered by the American Arbitration Association. Arbitration shall be the exclusive remedy for determining any such dispute, regardless of its nature. Notwithstanding the foregoing, either party may in an appropriate matter apply to a court for
provisional relief, including a temporary restraining order or a preliminary injunction, on the ground that the award to which the applicant may be entitled in arbitration may be rendered ineffectual without provisional relief. Unless mutually
agreed by the parties otherwise, any arbitration shall take place in St. Louis, Missouri. 
 (b) Selection of
Arbitrator. In the event the parties are unable to agree upon an arbitrator, the parties shall select a single arbitrator from a list of nine persons (who shall be retired judges or corporate attorneys experienced in executive employment
matters) provided by the office of the American Arbitration Association having jurisdiction over St. Louis, Missouri. If the parties are unable to agree upon an arbitrator from the list so drawn, then the parties shall each strike names alternately
from the list, with the first to strike being determined by lot. After each party has used four strikes, the remaining name on the list shall be the arbitrator. If such person is unable to serve for any reason, the parties shall repeat this process
until an arbitrator is selected. 

  

											
	KV:	 	
 

	  	Executive:	 	
 

	  	                13	  	

 (c) Applicability of Arbitration; Remedial Authority. This agreement to resolve any
disputes by binding arbitration shall extend to claims against any parent, subsidiary or affiliate of each party, and, when acting within such capacity, any officer, director, stockholder, employee or agent of each party, or of any of the above, and
shall apply as well to claims arising out of state and federal statutes and local ordinances as well as to claims arising under the common law. In the event of a dispute subject to this section the parties shall be entitled to reasonable discovery
subject to the discretion of the arbitrator. The remedial authority of the arbitrator (which shall include the right to grant injunctive or other equitable relief) shall be the same as, but no greater than, would be the remedial power of a court
having jurisdiction over the parties and their dispute. The arbitrator shall, upon an appropriate motion, dismiss any claim without an evidentiary hearing if the party bringing the motion establishes that he or it would be entitled to summary
judgment if the matter had been pursued in court litigation. In the event of a conflict between the applicable rules of the American Arbitration Association and these procedures, the provisions of these procedures shall govern. 

(d) Award Final and Binding. The arbitrator shall render an award and written opinion, and the award shall be final and binding
upon the parties. If any of the provisions of this paragraph, or of this Agreement, are determined to be unlawful or otherwise unenforceable, in whole or in part, such determination shall not affect the validity of the remainder of this Agreement,
and this Agreement shall be reformed to the extent necessary to carry out its provisions to the greatest extent possible and to insure that the resolution of all conflicts between the parties, including those arising out of statutory claims, shall
be resolved by neutral, binding arbitration. If a court should find that the arbitration provisions of this Agreement are not absolutely binding, then the parties intend any arbitration decision and award to be fully admissible in evidence in any
subsequent action, given great weight by any finder of fact, and treated as determinative to the maximum extent permitted by law. 
 11. Reimbursement of Legal and Related Expenses. 
 (a) In the event that
any dispute shall arise between the Executive and the Company relating to his or her rights under this Agreement on or after a Change of Control, the Company shall reimburse Executive for one-half of all reasonable legal fees and expenses incurred
in connection with such dispute, provided, that if it is finally determined that the Executive has substantially prevailed in such dispute, the Company shall reimburse Executive for all such reasonable legal fees and expenses. 

(b) In the event that any dispute shall arise between the Executive and the Company relating to his or her rights under this Agreement
prior to a Change of Control, the Company shall reimburse Executive for all reasonable legal fees and expenses incurred in connection with such dispute, so long as it is finally determined that the Executive has substantially prevailed with respect
to at least one material claim in such dispute. 

  

											
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	  	Executive:	 	
 

	  	                14	  	

 12. Successors, Binding Agreement. 

(a) Assumption by Successor. The Company will require any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business or assets of the Company expressly to assume and to agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if
no such succession had taken place; provided, however, that no such assumption shall relieve the Company of its obligations hereunder. As used in this Agreement, the “Company” shall mean the Company as hereinbefore defined and any
successor to its business and/or assets as aforesaid which assumes and agrees to perform this Agreement by operation of law or otherwise. 
 (b) Enforceability, Beneficiaries. This Agreement shall be binding upon and inure to the benefit of the Executive (and his or her personal representatives and heirs) and the Company and any
organization which succeeds to substantially all of the business or assets of the Company, whether by means of merger, consolidation, acquisition of all or substantially all of the assets of the Company or otherwise, including, without limitation,
by operation of law. This Agreement shall inure to the benefit of and be enforceable by the Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees or other beneficiaries.
If the Executive should die while any amount would still be payable to him or her hereunder if he or she had continued to live, all such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this Agreement to his
or her beneficiary. 
 13. Assignment. Neither party may assign this Agreement or any of his or her or its rights,
benefits, obligations or duties hereunder to any other person, firm, corporation or other entity. 
 14. Withholding.
The Company shall be authorized to withhold from any award or payment it makes under the Agreement, the amount of withholding taxes due with respect to such award or payment and to take such other action as may be necessary in the opinion of the
Company to satisfy all obligations for the withholding of such taxes. 
 15. Notices. All notices and other
communications required or permitted hereunder shall be in writing and shall be deemed to have been duly given when personally delivered or on the third business day after being placed in the mail, postage prepaid, addressed to the parties hereto as
follows (provided that notice of change of address shall be deemed given only when actually received): 
  

			
	As to the Company:	  	 K-V Pharmaceutical Company

One Corporate Woods Drive
 Bridgeton, MO
63044
 Attention: VP, Human Resources

  

											
	KV:	 	
 

	  	Executive:	 	
 

	  	                15	  	

			
		  	 As to the Executive: To the last known address of the Executive shown
 in the Company’s records

 The address of any of the parties may be changed
from time to time by such party serving notice upon the other parties. 
 16. Governing Law; Forum for Disputes. This
Agreement shall be governed by the laws of the State of Missouri (other than Missouri’s principles of conflicts of laws). 

17. Entire Agreement; Modification. Other than any stock option agreement between the Company and the Executive, this Agreement
constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes and cancels all prior or contemporaneous oral or written agreements and understandings between them with respect to the subject matter
hereof, including but not limited to any employment agreements and repayment agreements. This Agreement has been approved by the Company’s Board of Directors, and may not be amended or modified except by written amendment approved by the
Company’s Board of Directors and the Executive. 
 18. Benefits of Other Plans and Agreements. If the Executive
becomes entitled to receive severance benefits under the terms of this Agreement, such benefits will be reduced by other severance benefits payable under any plan, program, policy or practice of or agreement or other arrangement between the
Executive and the Company. It is intended that the Agreement provide benefits that are supplemental to severance benefits that are actually received by the Executive pursuant to any plan, program, policy or practice of or agreement or arrangement
between the Executive and the Company, such that the net effect to the Executive of entitlement to any similar benefits that are contained both in the Agreement and in any other existing plan, program, policy or practice of or agreement or
arrangement between the Executive and the Company will be to provide the Executive with the greater of the benefits under the Agreement or under such other plan, program, policy, practice, or agreement or arrangement. For the avoidance of doubt, the
Executive is not entitled to participate in that certain Special Retention Bonus Plan, made as of March 2009, or any similar plan. 
 19. Severability. Should any provision of this Agreement or any part thereof be held invalid or unenforceable, the same shall not affect or impair any other provision of this Agreement or any part
thereof and the invalidity or unenforceable of any provision of this Agreement shall not have any effect on or impair the obligations of the Company or the Executive. 
 20. Rules of Construction. The captions in this Agreement are for convenience of reference only and in no way define, limit or describe the scope or intent of any provisions or Sections of this
Agreement. All references in this Agreement to particular Sections are references to the Sections of this Agreement, unless some other reference is clearly indicated. 

  

											
	KV:	 	
 

	  	Executive:	 	
 

	  	                16	  	

 21. Execution. This Agreement may be executed in one or more counterparts, each of
which shall be deemed an original but all of which together shall constitute one and the same agreement. 
 [SIGNATURE PAGE
FOLLOWS] 

  

											
	KV:	 	
 

	  	Executive:	 	
 

	  	                17	  	

 IN WITNESS WHEREOF, the Company and the Executive have executed this Agreement as of the day
and year first above written. 
  

			
	K-V PHARMACEUTICAL COMPANY
		
	By:	 	 /s/ Gregory J. Divis

	Name:	 	Gregory J. Divis
	Title:	 	Interim President/Chief Executive Officer
	
	 /s/ Thomas S. McHugh

	Thomas S. McHugh

 [SIGNATURE
PAGE – EMPLOYMENT AGREEMENT] 

  

											
	KV:	 	
 

	  	Executive:

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