Document:

Exhibit 10.2

Exhibit 10.2

Execution Copy

First Amendment to Second Lien Credit Agreement

          This First Amendment, dated as of August 21, 2008 (this “Amendment”), to that certain Second
Lien Credit Agreement, dated as of September 5, 2006 (as the same may be amended, restated,
supplemented or otherwise modified from time to time, the “Second Lien Credit Agreement”), among
HBI Branded Apparel Limited, Inc., a Delaware corporation (the “Borrower”), Hanesbrands Inc., a
Maryland corporation (the “Company”), the various financial institutions and other persons from
time to time party thereto (the “Lenders”), HSBC Bank USA, National Association and LaSalle Bank
National Association and Barclays Bank PLC, as Co-Documentation Agents, Merrill Lynch, Pierce,
Fenner & Smith Incorporated and Morgan Stanley Senior Funding, Inc., as the Co-Syndication Agents,
Citicorp USA, Inc., as administrative agent (in such capacity, the “Administrative Agent”),
Citibank, N.A., as the collateral agent (in such capacity, the “Collateral Agent”) and Merrill
Lynch, Pierce, Fenner & Smith Incorporated and Morgan Stanley Senior Funding, Inc., as the Joint
Lead Arrangers and Joint Bookrunners. Capitalized terms used herein but not defined herein are
used as defined in the Second Lien Credit Agreement.

W i t n e s s e t h:

          Whereas, the Borrower has requested that the Lenders amend the Second Lien Credit
Agreement as set forth herein to increase the unsecured Indebtedness debt basket to provide
additional flexibility for the Borrower;

          Whereas, the Lenders signatory to an acknowledgment and consent to amendment in the
form attached as Exhibit A hereto (an “Acknowledgment and Consent to Amendment”) and the
Administrative Agent have consented to this Amendment on the terms and subject to the conditions
herein provided.

          Now, Therefore, in consideration of the foregoing, the mutual covenants and
obligations herein set forth and other good and valuable consideration, the adequacy and receipt of
which is hereby acknowledged, and in reliance upon the representations, warranties and covenants
herein contained, the parties hereto, intending to be legally bound, hereby agree as follows:

     Section 1. Amendment.

     (a) As of the First Amendment Effective Date (as defined below), the Administrative Agent (on
behalf of the Required Lenders), the Borrower, the Company and the Lenders hereby agree that the
Second Lien Credit Agreement shall be amended as set forth below:

          (i) Section 1.1 (Defined Terms) of the Second Lien Credit Agreement is hereby amended
by inserting the following definitions in the appropriate alphabetical order:

          “First Amendment” means the First Amendment to this Agreement, dated as of August 21,
2008 by and among the Borrower, the Company, the Administrative Agent and the Subsidiary
Guarantors.

          “First Amendment Effective Date” means the First Amendment Effective Date as defined
in the First Amendment.

 

 

          (ii) The definition of “Loan Documents” in Section 1.1 (Defined Terms) of the Second
Lien Credit Agreement is hereby amended and restated in its entirety as follows:

          “Loan Documents” means, collectively, this Agreement, the First Amendment, the Notes,
the Fee Letter, the Intercreditor Agreement, the Security Agreement, each Mortgage, each Foreign
Pledge Agreement, each other agreement pursuant to which the Collateral Agent is granted by the
Borrower or its Subsidiaries a Lien to secure the Obligations, the Guaranty and each other
agreement, certificate, document or instrument delivered in connection with any Loan Document,
whether or not specifically mentioned herein or therein.

          (iii) Section 7.2.2(b) is hereby amended and restated in its entirety as follows:

               (b) unsecured Indebtedness of the Obligors (i) under the Senior Note Documents and the Bridge
Loan Documents in an aggregate principal amount not to exceed $500,000,000, as such amount is
reduced on or after the Closing Date in accordance with the terms hereof and (ii) under senior
notes whether issued pursuant to a supplement to the Senior Note Indenture or any other senior note
indenture, the terms of which are reasonably satisfactory to the Administrative Agent, so long as
(x) the aggregate principal amount thereunder does not exceed $1,000,000,000 and (y) the proceeds
therefore are applied to repay Loans in accordance with clause (f) of Section 3.1.1;

          (iv) The introductory paragraph to Section 10.3 is hereby amended by deleting the words
“Mayer, Brown, Rowe & Maw LLP,”.

     Section 2. Conditions Precedent. This Amendment shall become effective as of the
date (the “First Amendment Effective Date”) on which each of the following conditions precedent
shall have been satisfied or duly waived:

     (a) Certain Documents. The Administrative Agent shall have received each of the following:

          (i) this Amendment, duly executed by the Borrower, the Company, each Subsidiary Guarantor and
the Administrative Agent; and

          (ii) an Acknowledgment and Consent to Amendment, in the form set forth hereto as Exhibit A,
duly executed by the Required Lenders.

     (b) Payment of Costs and Expenses. The Administrative Agent and the Lenders shall have
received payment of all fees and reasonable out-of-pocket costs and expenses as required by Section
4 hereof.

     (c) Representations and Warranties. Each of the representations and warranties contained in
Section 3 below shall be true and correct.

     Section 3. Representations and Warranties. The Borrower, the Company and each
Subsidiary Guarantor hereby represents and warrants to the Administrative Agent and each Lender, as
follows:

     (a) After giving effect to this Amendment, each of the representations and warranties in the
Second Lien Credit Agreement and in the other Loan Documents are true and correct in all

2

 

material respects (except to the extent that such representation or warranty is qualified as
to materiality, in which case it shall be true and correct in all respects) on and as of the date
hereof as though made on and as of such date, except to the extent that any such representation or
warranty expressly relates to an earlier date, in which case such representation or warranty shall
be true and correct in all material respects (except to the extent that such representation or
warranty is qualified as to materiality, in which case it shall be true and correct in all
respects) as of such earlier date;

     (b) The Borrower, the Company and each Subsidiary Guarantor has taken all necessary action to
authorize the execution, delivery and performance of this Amendment, this Amendment has been duly
executed and delivered by the Borrower, the Company and each Subsidiary Guarantor, and this
Amendment is the legal, valid and binding obligation of the Borrower, the Company and each
Subsidiary Guarantor, enforceable against it in accordance with its terms, except as enforceability
may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws
affecting the enforcement of creditors’ rights generally and by general equitable principles; and

     (c) At the time of and immediately after giving effect to this Amendment, no Default or Event
of Default has occurred and is continuing.

     Section 4. Costs and Expenses. The Borrower agrees to reimburse the Administrative
Agent for its costs and expenses in connection with this Amendment (and any other Loan Documents
delivered in connection herewith) as and to the extent provided in Section 10.3(a) (as amended
hereby) of the Second Lien Credit Agreement.

     Section 5. Reference to and Effect on the Loan Documents.

     (a) As of the Effective Date, each reference in the Second Lien Credit Agreement and the other
Loan Documents to “this Agreement,” “hereunder,” “hereof,” “herein,” or words of like import, and
each reference in the other Loan Documents to the Second Lien Credit Agreement (including, without
limitation, by means of words like “thereunder”, “thereof” and words of like import), shall mean
and be a reference to the Second Lien Credit Agreement as amended and as waived hereby with respect
to the certain requirements outlined above, and this Amendment and the Second Lien Credit Agreement
shall be read together and construed as a single instrument.

     (b) Except as expressly amended hereby, all of the terms and provisions of the Second Lien
Credit Agreement and all other Loan Documents are and shall remain in full force and effect and are
hereby ratified and confirmed.

     (c) The execution, delivery and effectiveness of this Amendment shall not, except as expressly
provided herein, operate as a waiver of any right, power or remedy of the Administrative Agent, any
Lender or any Issuer under the Second Lien Credit Agreement or any Loan Document, or constitute a
waiver or amendment of any other provision of the Second Lien Credit Agreement or any Loan Document
(as amended hereby) except as and to the extent expressly set forth herein.

     (d) Each of the Borrower, the Company and (by its acknowledgment hereof as set forth on the
signature pages hereto) each Subsidiary Guarantor, hereby confirms that the guaranties, security
interests and liens granted pursuant to the Loan Documents (as amended

3

 

hereby) continue to guarantee and secure the Obligations as set forth in the Loan Documents
(as amended hereby) and that such guaranties, security interests and liens remain in full force and
effect.

     Section 6. Counterparts. This Amendment may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of which when so
executed shall be deemed to be an original and all of which taken together shall constitute one and
the same agreement. Receipt by the Administrative Agent of a facsimile (or other electronic
transmission) copy of an executed signature page hereof shall constitute receipt by the
Administrative Agent of an executed counterpart of this Amendment.

     Section 7. Governing Law. This Amendment and the rights and obligations of the
parties hereto shall be governed by, and construed and interpreted in accordance with, the law of
the State of New York.

     Section 8. Loan Document and Integration. This Amendment is a Loan Document, and
together with the other Loan Documents, incorporates all negotiations of the parties hereto with
respect to the subject matter hereof and is the final expression and agreement of the parties
hereto with respect to the subject matter hereof.

     Section 9. Headings. Section headings contained in this Amendment are included
herein for convenience of reference only and shall not constitute a part of this Amendment for any
other purposes.

     Section 10. Waiver of Jury Trial. Each Of The Parties Hereto Irrevocably Waives
Trial By Jury In Any Action Or Proceeding With Respect To This Amendment Or Any Other Loan
Document.

[Signature Pages Follow]

4

 

     In Witness Whereof, the parties hereto have caused this Amendment to be executed by
their respective officers and members thereunto duly authorized, as of the date indicated above.

	 	 	 	 	 
	 	HBI Branded Apparel Limited, Inc.

        as Borrower

 	 
	 	By:  	/s/ Catherine A. Meeker
 	 
	 	 	Name:  	Catherine A. Meeker 	 
	 	 	Title:  	Vice President and Secretary 	 
	 

	 	 	 	 	 
	 	Hanesbrands Inc.

as Company

 	 
	 	By:  	/s/ Richard D. Moss
 	 
	 	 	Name:  	Richard D. Moss 	 
	 	 	Title:  	Senior Vice President and Treasurer 	 
	 

	 	 	 	 	 
	 	Citicorp USA, Inc.,

as Administrative Agent

 	 
	 	By:  	/s/ David Leland
 	 
	 	 	Name:  	David Leland 	 
	 	 	Title:  	Vice President 	 
	 

[Signature Page — First Amendment to Second Lien Credit Agreement]

 

 

     For the purposes of Sections 3 and 5(d) hereof, the Company and each Subsidiary Guarantor set
forth below (i) makes the representations set forth in Section 3 hereof on the Effective Date and
(ii) hereby consents to this Amendment and confirms that all guaranties, security interest and
Liens granted by it, and all its other obligations, pursuant to the Loan Documents (as amended
hereby) remain in full force and effect.

BA International, L.L.C. 

Caribesock, Inc. 

Caribetex, Inc. 

Casa International, LLC

Ceibena Del, Inc. 

Hanes Menswear, LLC

Hanes Puerto Rico, Inc. 

Hanesbrands inc.

Hanesbrands Direct, LLC

Hanesbrands Distribution, Inc. 

HBI Branded Apparel Enterprises, LLC

HBI International, LLC

HBI Sourcing, LLC

Inner Self LLC

Jasper-Costa Rica, L.L.C.

Playtex Dorado, LLC

Playtex Industries, Inc. 

Seamless Textiles, LLC

UPCR, Inc. 

UPEL, Inc.

	 	 	 	 	 
	 	 	 
	 	By:  	                                                  /s/ Richard D. Moss
 	 
	 	 	Name:  	Richard D. Moss 	 
	 	 	Title:  	Treasurer 	 
	 

[Signature Page — First Amendment to Second Lien Credit Agreement]

 

 

Exhibit A

 

 

Acknowledgement and Consent to Amendment

	 	 	 
	To:

	 	Citicorp USA, Inc., as Administrative Agent
	 

	 	388 Greenwich Street
	 

	 	New York, New York 10013
	 
	 	 
	 

	 	Attention: [                    ]

               Re: HBI Branded Apparel Limited, Inc. and Hanesbrands Inc. 

               Reference is made to that certain Second Lien Credit Agreement, dated as of September 5, 2006
(as the same may be amended, restated, supplemented or otherwise modified from time to time, the
"Second Lien Credit Agreement”), among HBI Branded Apparel Limited, Inc., a Delaware corporation
(the “Borrower”), Hanesbrands Inc., a Maryland corporation (the “Company”), the various financial
institutions and other persons from time to time party thereto (the “Lenders”), HSBC Bank USA,
National Association and LaSalle Bank National Association and Barclays Bank PLC, as
Co-Documentation Agents, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Morgan Stanley
Senior Funding, Inc., as the Co-Syndication Agents, Citicorp USA, Inc., as administrative agent (in
such capacity, the “Administrative Agent”), Citibank, N.A., as the collateral agent (in such
capacity, the “Collateral Agent”) and Merrill Lynch, Pierce, Fenner & Smith Incorporated and Morgan
Stanley Senior Funding, Inc., as the Joint Lead Arrangers and Joint Bookrunners. Capitalized terms
used herein but not defined herein are used as defined in the Second Lien Credit Agreement.

              The Borrower has requested that the Lenders consent to an amendment to the Second Lien Credit
Agreement on the terms described in the First Amendment (the “Amendment”), the form of which is
attached hereto.

              Pursuant to Section 10.1 of the Second Lien Credit Agreement, the undersigned Lender hereby
consents to the terms of the Amendment and authorizes the Administrative Agent to execute and
deliver the Amendment on its behalf.

	 	 	 	 	 	 	 
	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	Name of Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

Dated as of                     , 2008

[Lender
Acknowledgment to First Amendment to Second Lien Credit Agreement]Ex-10.1

Exhibit 10.1

EXECUTION COPY

IN THE CHANCERY COURT FOR

SULLIVAN COUNTY AT BRISTOL, TENNESSEE

	 	 	 
	IN RE: KING PHARMACEUTICALS, INC.
	 	 
	DERIVATIVE LITIGATION

	 	Lead Case No. BOO19077(M)
	 
	 	 
	This document relates to:

	 	(Derivative Action)
	ALL ACTIONS
	 	 

STIPULATION OF SETTLEMENT

 

 

EXECUTION COPY

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	I.
	 	THE LITIGATION	 	 	1	 
	 
	 	 	 	 	 	 
	II.
	 	CLAIMS OF THE REPRESENTATIVE PLAINTIFFS  AND BENEFITS OF SETTLEMENT	 	 	2	 
	 
	 	 	 	 	 	 
	III.
	 	DEFENDANTS’ DENIALS OF WRONGDOING AND LIABILITY	 	 	2	 
	 
	 	 	 	 	 	 
	IV.
	 	POSITION OF KING PHARMACEUTICALS, INC.  REGARDING THE SETTLEMENT	 	 	3	 
	 
	 	 	 	 	 	 
	V.
	 	TERMS OF STIPULATION AND AGREEMENT OF SETTLEMENT	 	 	3	 
	 
	 	 	 	 	 	 
	 
	 	A. Definitions	 	 	3	 
	 
	 	 	 	 	 	 
	 
	 	B. Terms of the Settlement	 	 	7	 
	 
	 	 	 	 	 	 
	 
	 	C. Stay of Proceedings,
Preliminary Approval of Settlement, Notice Order, Final Approval Hearing, and Final Approval of Settlement	 	 	9	 
	 
	 	 	 	 	 	 
	 
	 	D. Award of Attorneys’ Fees and Expenses to Plaintiffs’ Counsel	 	 	10	 
	 
	 	 	 	 	 	 
	 
	 	E. Releases	 	 	13	 
	 
	 	 	 	 	 	 
	 
	 	F. Conditions of Settlement, Effect of Disapproval, Cancellation, or Termination	 	 	14	 
	 
	 	 	 	 	 	 
	 
	 	G. Miscellaneous Provisions	 	 	15	 

i

 

EXECUTION COPY

TABLE OF DEFINED TERMS

	 	 	 	 	 
	Term	 	Where Defined	 
	Action
	 	 	I	 
	Agreed Fee and Expense Amount
	 	 	V.D.1	 
	Board
	 	 	V.A.1	 
	Company
	 	Preamble
	Complaint
	 	 	I.	 
	Court
	 	 	V.A.2	 
	Defendants
	 	 	V.A.3	 
	Effective Date
	 	 	V.A.4	 
	Escrow Account
	 	 	V.D.2	 
	Escrow Agents
	 	 	V.A.5	 
	Fee and Expense Award
	 	 	V.D.3	 
	Final
	 	 	V.A.6	 
	Final Approval Hearing
	 	 	V.C.1	 
	Governance Improvements
	 	 	V.B.1	 
	Individual Defendants
	 	 	V.A.7	 
	Judgment
	 	 	V.A.8	 
	King
	 	Preamble
	King Shareholder
	 	 	V.A.9	 
	Net Escrow Account Interest
	 	 	V.A.10	 
	Notice
	 	 	V.C.1	 
	Person
	 	 	V.A.11	 
	Plaintiffs’ Counsel
	 	 	V.A.12	 
	Preliminary Approval Order
	 	 	V.C.1	 
	PwC
	 	 	I.	 
	Related Persons
	 	 	V.A.13	 
	Released Claims
	 	 	V.A.14	 
	Released Persons
	 	 	V.A.15	 
	Representative Plaintiffs
	 	 	V.A.16	 
	Settlement
	 	 	V.A.17	 
	Settling Parties
	 	Preamble
	Stipulation
	 	Preamble
	Unknown Claims
	 	 	V.A.18	 

ii

 

EXECUTION COPY

INDEX TO EXHIBITS

	 	 	 
	Certain Governance Improvements Instituted by King Since March 2003

	 	Exhibit A
	Additional Governance Improvements To Be Adopted by King

	 	Exhibit B
	Form of Preliminary Approval Order

	 	Exhibit C
	Notice of Settlement of Derivative Action

	 	Exhibit D
	Form of Final Judgment

	 	Exhibit E

iii

 

EXECUTION COPY

     This Stipulation of Settlement (the “Stipulation”) is entered into by and among (i)
the Representative Plaintiffs (as defined in Section V.A herein) on behalf of themselves and
derivatively on behalf of King Pharmaceuticals, Inc. (“King” or the “Company”);
(ii) the Individual Defendants (as defined in Section V.A herein); and (iii) nominal party King.
The Representative Plaintiffs, the Individual Defendants, and nominal party King are referred to
herein collectively as the “Settling Parties.” This Stipulation is intended by the
Settling Parties to fully, finally, and forever resolve, discharge, and settle the Released Claims
(as defined in Section V.A herein), upon and subject to the terms and conditions hereof.

I.

THE LITIGATION

     Nominal defendant King is a pharmaceutical company that develops, manufactures and markets
therapies and technologies primarily in specialty-driven markets including neuroscience, hospital
and acute care medicines. King was founded in 1994, and its headquarters is located in Bristol,
Tennessee.

     This consolidated shareholder derivative action (the “Action”) was initiated in March
2003. As set forth in the Second Amended Consolidated Complaint filed in the Action on December
21, 2007 (the “Complaint”), the Representative Plaintiffs allege that the Individual
Defendants engaged in breaches of fiduciary duty and other violations of law during their service
as directors and/or officers of King between June 1998 and the present. The Representative
Plaintiffs also allege that defendant PricewaterhouseCoopers LLC (“PwC”) engaged in aiding
and abetting breaches of fiduciary duty.

     The Action has been vigorously prosecuted by the Representative Plaintiffs and vigorously
defended by the Individual Defendants. The parties have engaged in full document

1

 

EXECUTION COPY

discovery, taken over sixty depositions, and undertaken extensive motions practice, including
pending cross-motions for summary judgment. The Settling Parties are thus each in a position to
assess fully the strengths and weaknesses of the claims and defenses asserted in the Action, and to
determine that the Settlement described herein is fair and reasonable under the circumstances.

II.

CLAIMS OF THE REPRESENTATIVE PLAINTIFFS

AND BENEFITS OF SETTLEMENT

     The Representative Plaintiffs believe that the claims asserted in the Action have merit and
that their investigation and analysis of the facts and the law in this matter support the claims
asserted. However, Representative Plaintiffs and their counsel recognize and acknowledge the
expense and length of continued proceedings necessary to prosecute the Action against the
Defendants through trial and through appeals. Representative Plaintiffs and their counsel also
have taken into account the uncertain outcome and the risk of any litigation, especially in complex
lawsuits such as this Action, as well as the difficulties, expense and delays inherent in such
litigation. Representative Plaintiffs and their counsel also are mindful of the inherent problems
of proof and possible defenses to the claims asserted in the Action. Representative Plaintiffs and
their counsel believe, and the Company and Individual Defendants acknowledge, that the settlement
set forth in this Stipulation confers substantial benefits upon King. Based on their evaluation,
Representative Plaintiffs and their counsel have determined that the settlement set forth in the
Stipulation is in the best interests of King.

III.

DEFENDANTS’ DENIALS OF WRONGDOING AND LIABILITY

     The Individual Defendants have denied and continue to deny all allegations of wrongdoing or
liability asserted against them in the Action, believe that the claims asserted in the

2

 

EXECUTION COPY

Action lack any merit, and contend that they would ultimately prevail were this case litigated
to a final conclusion on the merits. The Individual Defendants further believe that with respect
to the matters at issue in the Action each of them at all times acted reasonably, appropriately, in
good faith, and in a manner he or she believed to be in the best interests of King and its
shareholders. Nonetheless, the Individual Defendants recognize that further conduct of the Action
would be protracted and expensive, and believe that given the terms and conditions set forth in
this Stipulation it is desirable and in the best interests of both the Individual Defendants and
King that the Action be fully and finally settled in the manner set forth herein.

IV.

POSITION OF KING PHARMACEUTICALS, INC.

REGARDING THE SETTLEMENT

     The board of directors of nominal party King has determined that the Settlement set forth in
this Stipulation confers substantial benefits upon King and that consummation of the settlement is
in the best interests of King and its current shareholders.

V.

TERMS OF STIPULATION AND AGREEMENT OF SETTLEMENT

     NOW, THEREFORE, IT IS HEREBY STIPULATED AND AGREED by and among the Settling Parties that the
Action shall be fully and finally settled on and subject to the terms and conditions set forth
below.

A. Definitions

     The following terms have the meanings specified below:

     1. “Board” means the board of directors of King.

     2. “Court” means the Tennessee Chancery Court for Sullivan County.

3

 

EXECUTION COPY

     3. “Defendants” means, collectively, King (including its subsidiaries) and the
Individual Defendants.

     4. “Effective Date” means the first date by which all of the events and conditions
specified in Section V.F.1 of the Stipulation have occurred and been met.

     5. “Escrow Agents” means Branstetter, Stranch & Jennings PLLC; Robbins Umeda & Fink,
LLP; Coughlin Stoia Geller Rudman & Robbins, LLP; and Shine & Mason. All amounts held by the
Escrow Agent shall be held in custodia legis and disbursed only pursuant to the Order of the Court.

     6. “Final,” with respect to the Judgment, means the later of: (a) if no appeal is
filed, the expiration date for filing of any appeal from the Court’s Judgment approving the
Stipulation; (b) the date of final affirmance on an appeal of the Judgment, the expiration of the
time for a petition for or a denial of such writ of review of the Judgment or, if such writ is
granted, the date of final affirmance of the Judgment following review pursuant to that grant; or
(c) the date of final dismissal of any appeal from the Judgment or the final dismissal of any
proceeding on writ of review to review the Judgment. “Final,” with respect to the Fee and
Expense Award, means the later of: (a) if no appeal is filed, the expiration date for filing of any
appeal from the Fee and Expense Award; (b) the date of a final ruling on appeal regarding the Fee
and Expense Award, the expiration of the time for a petition for or a denial of such writ of review
of the Fee and Expense Award or, if such writ is granted, the date of a final ruling regarding the
Fee and Expense Award following review pursuant to that grant; or (b) the date of final dismissal
of any appeal regarding the Fee and Expense Award or the final dismissal of any proceeding on writ
of review to review the Fee and Expense Award.

4

 

EXECUTION COPY

     7. “Individual Defendants” means John M. Gregory, Joseph R. Gregory, Jefferson J.
Gregory, James E. Gregory, D. Greg Rooker, Kyle P. Macione, Ted G. Wood, Earnest W. Deavenport,
Jr., Gregory D. Jordan, R. Charles Moyer, James R. Lattanzi, Ernest C. Bourne, Frank W. DeFriece,
Jr., Lois A. Clarke, and Richard C. Williams.

     8. “Judgment” means the final judgment, substantially in the form of Exhibit E hereto,
to be entered by the Court.

     9. “King Shareholder” means any person or entity who is or was a record or beneficial
owner of King common stock during the period from March 1, 2003 through the Effective Date.

     10. “Net Escrow Account Interest” means all interest earned on funds in the Escrow
Account less any fees charged, which shall be paid from the Escrow Fund.

     11. “Person” means an individual, corporation, limited liability corporation,
professional corporation, partnership, limited partnership, limited liability partnership,
association, joint stock company, estate, legal representative, trust, unincorporated association,
government or any political subdivision or agency thereof, and any business or legal entity and
their spouses, heirs, predecessors, successors, representatives, or assignees.

     12. “Plaintiffs’ Counsel” means the law firms of Branstetter, Stranch & Jennings PLLC;
Robbins Umeda & Fink, LLP; Coughlin Stoia Geller Rudman & Robbins, LLP; Shine & Mason; and all
attorneys at those law firms.

     13. “Related Persons” means King’s past or present directors, officers, employees,
controlling shareholders, attorneys, accountants (including PwC), insurers, reinsurers, and
co-insurers, legal representatives, predecessors, successors, subsidiaries, spouses, heirs, any
entity in which an Individual Defendant controls or has a controlling interest, any member of an

5

 

EXECUTION COPY

Individual Defendants’ immediate family, or any trust of which any Individual Defendant is the
settlor or which is for the benefit of any Individual Defendant and/or member(s) of his/her family.
Related Persons shall also include The United Company.

     14. “Released Claims” shall collectively mean all claims (including Unknown Claims as
defined below), demands, rights, actions, liabilities, damages, losses, obligations, or causes of
action, in law or in equity, whether known or unknown, contingent or absolute, suspected or
unsuspected, disclosed or undisclosed, hidden or concealed, matured or unmatured, accrued or which
may hereafter accrue, that have been or could have been asserted through the Effective Date by (i)
King, (ii) the Representative Plaintiffs, (iii) the Representative Plaintiffs on behalf of King, or
(iv) any other King Shareholder on behalf of King, against the Released Persons, or any of them,
that are based upon, arise out of, or are related to the acts, events, facts, statements,
omissions, or failures to act which were alleged or could have been alleged in the Action through
the Effective Date. It is the intent of the Settling Parties that no action may hereafter be
brought or prosecuted derivatively on behalf of King which arises from or relates to the subject
matter of the Action, including any other pending cases which are based on the subject of the
Action. “Released Claims” shall not include any rights or claims by the Defendants under any
policies of insurance or by the Individual Defendants against King for indemnification,
reimbursement and/or advancement of expenses.

     15. “Released Persons” means each and all of the Defendants and the Related Persons.

     16. “Representative Plaintiffs” means Barbara Wright, Fred McMahan, Scott Franklin,
Jr. and Don J. Dennis.

6

 

EXECUTION COPY

     17. “Settlement” means the proposed settlement and compromise of the Action as
provided for in Section V(B) of this Stipulation.

     18. “Unknown Claims” means any Released Claim which any Settling Party does not know
or suspect to exist in such party’s favor at the time of the release of the Released Persons,
which, if known by such party, might have affected such party’s settlement with and release of the
Released Persons, or might have affected such party’s decision not to object to this settlement.
The Settling Parties may hereafter discover facts in addition to or different from those which such
party now knows or believes to be true with respect to the subject matter of the Released Claims,
but the Settling Parties, the King Shareholders, and King, upon the Effective Date, by operation of
the Judgment shall have fully, finally, and forever settled and released any and all Released
Claims, known or unknown, suspected or unsuspected, contingent or non-contingent, whether or not
concealed or hidden, that now exist, or heretofore have existed, upon any theory of law or equity
now existing or coming into existence in the future, including, but not limited to, conduct that is
negligent, reckless, intentional, with or without malice, or a breach of any duty, law, or rule,
without regard to the subsequent discovery or existence of such different or additional facts. The
Settling Parties specifically waive the provisions, rights, and benefits of Section 1542 of the
Civil Code of the State of California, and of any law of any state or territory of the United
States, federal law, or principle of common law, which is similar, comparable, or equivalent to
California Civil Code Section 1542.

B. Terms of the Settlement

     1. The Settling Parties agree to resolve the Action through the adoption and maintenance by
King of substantial and material corporate governance improvements for the benefit of King and its
shareholders (the “Governance Improvements”), as set forth in Exhibit A and
Exhibit B hereto. Execution of the Stipulation by counsel for nominal defendant King shall

7

 

EXECUTION COPY

constitute confirmation that King’s board of directors has approved of all the settlement
terms contained herein.

     2. The Governance Improvements set forth in Exhibit A have been instituted by King after the
commencement of this Action in March 2003. King and Defendants acknowledge and agree that the
pendency and prosecution of this Action, together with the related federal securities litigation,
was a significant factor underlying the decision by King’s Board to adopt the Governance
Improvements set forth in Exhibit A.

     3. The Governance Improvements set forth in Exhibit B shall be adopted by King’s Board within
90 days of the Effective Date, by means of, as appropriate, (a) changes to King’s bylaws, (b)
changes to King’s corporate governance guidelines, and/or (c) changes to Board committee charters.

     4. King agrees that the Governance Improvements set forth in Exhibit A and Exhibit B shall not
be diminished or removed for a period of three years from the Effective Date, unless either (a) the
Board determines, in good faith and upon advice of counsel, that a particular Governance
Improvement conflicts or will conflict with any applicable law, regulation, or rule (including the
NYSE rules), agreement with any governmental entity, or corporate policy approved by the Company’s
shareholders; or (b) such alteration or removal is approved by a vote of the Company’s
shareholders.

     5. This Court shall retain jurisdiction over the parties to the Stipulation to resolve any
disputes between any of the Settling Parties with respect to the Governance Improvements set forth
in Exhibit A and Exhibit B.

8

 

EXECUTION COPY

			
	C.	 	Stay of Proceedings, Preliminary Approval of Settlement, Notice Order, Final
Approval Hearing, and Final Approval of Settlement

     1. Promptly after execution of this Stipulation by all parties, the Settling Parties shall
submit the Stipulation together with its Exhibits to the Court and the Representative Plaintiffs
shall file a motion for preliminary approval of the Settlement requesting that the Court enter as
soon as practicable an order, substantially in the form of Exhibit C hereto (the
“Preliminary Approval Order”) hereto, granting preliminary approval of the Settlement,
staying all proceedings in this action pending the Court’s consideration of the proposed
Settlement, scheduling a hearing (the “Final Approval Hearing”) to consider objections
filed in response to the Notice, if any, and final approval of the Settlement, and granting
approval for the Notice of Settlement of Derivative Action substantially in the form of Exhibit
D (the “Notice”) to be published in Investor’s Business Daily and furnished to the
United States Securities and Exchange Commission, along with a copy of the Stipulation, as exhibits
to a current report on Form 8-K and providing that publication and filing of the Notice
substantially in the manner set forth in the Notice Order constitutes adequate notice to the King
stockholders pursuant to Tenn. Code Ann. § 48-17-401(c) and other applicable law.

     2. King shall be responsible for the costs incurred in connection with providing notice of the
Settlement to current King shareholders as set forth above. Prior to the Final Approval Hearing,
King shall file with the Court an appropriate Declaration with respect to the preparation and
publishing of the Notice.

     3. Prior to the Final Approval Hearing, Representative Plaintiffs shall file a timely motion
for final approval of the Settlement and for entry of the Judgment, the terms of which is to be
considered by the Court at the Final Approval Hearing.

9

 

EXECUTION COPY

D. Award of Attorneys’ Fees and Expenses to Plaintiffs’ Counsel

     1. In consideration of the benefits conferred on King in this Settlement, King has agreed,
subject to Court approval, to cause its D&O insurers to pay the sum of $13.5 million in aggregate
(plus Net Escrow Account Interest on that sum) to Plaintiffs’ Counsel as full and complete
compensation for all of Plaintiffs’ Counsel’s services (including reimbursement for costs and
expenses) in the Action (the “Agreed Fee and Expense Amount”). Court approval of the
Agreed Fee and Expense Amount shall be requested at the Final Approval Hearing. Plaintiffs’
counsel agree not to seek or accept any award in excess of the Agreed Fee and Expense Amount.
Defendants agree not to oppose any fee and expense award that does not exceed the Agreed Fee and
Expense Amount.

     2. The Escrow Agents shall establish a separate, segregated interest bearing escrow account
(the “Escrow Account”) to receive payment of the Agreed Fee and Expense Amount. Within ten
business days after (a) execution of this Stipulation on behalf each of the Settling Parties, or
(b) receipt by counsel for King of specific payment instructions from Plaintiffs’ Counsel
(including bank account and tax ID information), whichever date is later, King shall cause its
insurers to deposit the Agreed Fee and Expense Amount into the Escrow Account. Within five
business days after receipt of the Agreed Fee and Expense Amount, the Escrow Agents shall invest
those funds in short-term instruments backed by the full faith and credit of the United States
Government or fully insured by the United States Government with a maturity date of less than 181
days, and thereafter shall reinvest the proceeds of those instruments as they mature in similar
instruments at their then-current market rates for so long as funds remain in the Escrow Account.
All risks related to the investment of the Agreed Fee and Expense Amount shall be borne by the
Escrow Agents, and not by King, its insurers, any defendant, or any other Released Persons.

10

 

EXECUTION COPY

     3. Within five business days of the Court’s entry of an order granting a fee and expense award
to Plaintiffs’ Counsel (the “Fee and Expense Award”), the Fee and Expense Award shall be
paid from the Escrow Account to Plaintiffs’ Counsel.

     4. Any modification, alteration, or denial of the Agreed Fee and Expense Award by the Court
shall not void the Settlement, render it voidable by any party, or otherwise affect the finality of
the Settlement. Additionally, any order, appeal or other proceeding related solely to the Agreed
Fee and Expense Amount and/or the Fee and Expense Award shall not operate to modify, terminate or
cancel this Stipulation, affect the obligations of plaintiffs or defendants under this Stipulation,
or affect the finality of the Court’s Judgment approving this Stipulation and the Settlement set
forth herein.

     5. Any disputes by and among Plaintiffs’ Counsel regarding allocation of the Fee and Expense
Award by and among them shall be resolved by the Court on noticed motion, or in such other manner
as shall be agreed in writing among the affected Plaintiffs’ Counsel.

     6. Subject to the limitations set forth in Paragraph 8 below, in the event that the amount of
the Fee and Expense Award is increased on or after appeal, Plaintiffs’ Counsel shall be paid the
appropriate additional amount from the Escrow Fund, up to but in no event exceeding the remaining
funds in the Escrow Account.

     7. In the event that any funds remain in the Escrow Account after the Fee and Expense Award
becomes Final and has been paid to Plaintiffs’ Counsel, all such funds shall be paid to King, or as
King shall otherwise direct in writing, within (a) five business days after the Fee and Expense
Award (as modified on or after appeal, if applicable) becomes Final, or (b) five business days
after receipt of specific payment instructions from King or its counsel, whichever date is later.

11

 

EXECUTION COPY

     8. In no event shall King or its insurers be responsible for paying any amount to Plaintiffs’
Counsel for fees and expenses beyond the $13,500,000 paid into the Escrow Account pursuant to
paragraph V.D.1, above. Plaintiffs’ Counsel agrees that the Fee and Expense Award (as modified on
or after appeal, if applicable), shall not exceed the Agreed Fee and Expense Amount and shall
constitute full and adequate compensation for the efforts and benefits they have expended in
serving as counsel for the Representative Plaintiffs in the Action. Upon payment of the Fee and
Expense Award (as modified on or after appeal, if applicable) King and its insurers shall be
discharged from any further liability to the Representative Plaintiffs or to Plaintiffs’ Counsel
for payment of attorneys fees, costs or expenses in connection with the Action.

     9. In no event shall any of the Individual Defendants or Related Persons be responsible for
paying any amount to Plaintiffs’ Counsel for fees and expenses.

     10. In the event that the Settlement is not ultimately consummated, any Fee and Expense Award
paid to Plaintiffs’ Counsel from the Escrow Fund, together with interest at the federal rate of
interest from the date of payment to Plaintiffs’ Counsel from the Escrow Fund, shall be repaid to
King (or such other entities as King may designate) within (a) five business days after written
notification of such event is sent by counsel for King, or (b) five business days after receipt of
specific payment instructions from King or its counsel, whichever date is later.

     11. In the event that the Fee and Expense Award is reduced or disallowed in whole or in part
on or after appeal, the amount by which the Fee and Expense Award previously paid to Plaintiffs’
Counsel exceeds the amount (if any) ultimately approved and awarded, together with interest at the
federal rate of interest from the date of payment to Plaintiffs’ Counsel from the Escrow Fund,
shall be repaid to King (or such other entities as King may designate) within (a)

12

 

EXECUTION COPY

five business days after written notification of such event is sent by counsel for King, or
(b) five business days after receipt of specific payment instructions from King or its counsel,
whichever date is later.

     12. Each Plaintiffs’ Counsel’s law firm, as a condition of receiving any portion of the Fee
and Expense Award, on behalf of itself and each partner and/or shareholder of it, agrees that the
law firm and each and every one of its partners and/or shareholders (a) shall be jointly and
severally liable for any payments due under paragraphs V.D.10 or V.D.11 above, without regard to
what portion of the Fee and Expense Award, if any, has been received by that law firm, partner, or
shareholder; and (b) shall be subject to the jurisdiction of the Court for the purpose of enforcing
this obligation.

E. Releases

     1. Upon the Effective Date, the Representative Plaintiffs, individually and derivatively on
behalf of the King Shareholders and by operation of the Judgment, shall be deemed to have fully,
finally, and forever released, relinquished, and discharged all Released Claims and any and all
claims arising out of, relating to, or in connection with the settlement or resolution of the
Action against the Released Persons.

     2. Upon the Effective Date, King, for itself and by operation of the Judgment, shall be deemed
to have fully, finally, and forever released, relinquished, and discharged all Released Claims and
any and all claims arising out of, relating to, or in connection with the settlement or resolution
of the Action against the Released Persons.

     3. Upon the Effective Date, King and each of the Released Persons shall be deemed to have, and
by operation of the Judgment shall have, fully, finally and forever released, relinquished, and
discharged each and all of the Representative Plaintiffs, and counsel to the Representative
Plaintiffs, from all claims (including Unknown Claims) arising out of, relating to,

13

 

EXECUTION COPY

or in connection with the institution, prosecution, assertion, settlement, or resolution of
the Action or the Released Claims.

     4. Upon the Effective Date, Plaintiffs’ Counsel, individually and collectively and by
operation of the Judgment, shall be deemed to have fully, finally, and forever released,
relinquished, and discharged any and all claims against the Released Persons arising out of,
relating to, or in connection with the settlement or resolution of the Action, except that this
release shall not affect Plaintiff Counsel’s entitlement to payment of the Fee and Expense Award as
set forth in Section V.D., above.

F. Conditions of Settlement, Effect of Disapproval, Cancellation, or Termination

     1. The Effective Date of the Stipulation shall be conditioned on the occurrence of the
following events: (a) entry of the Judgment by this Court; and (b) the Judgment has become Final,
as defined above.

     2. If all the conditions specified in Section V.F.1 are not met, then the Stipulation shall be
terminated subject to Section V.F.3, unless all parties to this Stipulation mutually agree in
writing to waive or modify any conditions that are not satisfied and otherwise agree to proceed
with the Stipulation.

     3. If the Stipulation is not approved by the Court, or if the Settlement is terminated or
fails to become effective in accordance with its terms, all amounts in the Escrow Fund shall be
paid to King or as King shall so designate, and the Settling Parties shall be restored to their
respective positions in the Action as of July 1, 2008. In such event, the terms and provisions of
the Stipulation, with the exception of Sections V.A and V.F.2-3, shall have no further force and
effect with respect to the Settling Parties and shall not be used in the Action or in any other

14

 

EXECUTION COPY

proceeding for any purpose, and any judgment or order entered by the Court in accordance with
the terms of the Stipulation shall be treated as vacated, nunc pro tunc.

G. Miscellaneous Provisions

     1. Cooperation of the Parties. The Settling Parties (a) intend to consummate the
Settlement contemplated by and provided for in this Stipulation; and (b) will cooperate to the
extent reasonably necessary to effectuate and implement the Settlement and all terms and conditions
of the Stipulation.

     2. Full and Final Settlement. The Settling Parties intend this Stipulation to be a
final and complete resolution of all disputes between them with respect to the Action. This
Stipulation compromises claims that are contested and shall not be deemed an admission by any
Settling Party as to the merits of any claim, allegation or defense. While retaining their right
to deny that the claims advanced in the Action were meritorious, Defendants in any statement made
to any media representative (whether or not for attribution) will not deny that the Action was
filed, maintained, or settled in good faith. Any party to this Stipulation proposing to issue a
press release concerning the Settlement shall first circulate a draft of the proposed release to
counsel for each party at least forty-eight hours prior to its proposed issue date.

     3. Nondisparagement. The Settling Parties and their counsel agree not to disparage
any of the other parties or to state or imply that any of the other parties are guilty of or have
engaged in wrongdoing or misconduct of any sort or acted in a manner that was not in good faith in
any press release or other public communication.

     4. No Admissions. Neither this Stipulation nor any act performed or document executed
pursuant to or in furtherance of the Stipulation: (a) is or may be deemed to be or may be used as
an admission of, or evidence of, the validity of any Released Claim, or of any wrongdoing or
liability of the Individual Defendant and/or the Released Persons; or (b) is or may

15

 

EXECUTION COPY

be deemed to be or may be used as an admission of, or evidence of, any fault or omission of
any of the Individual Defendants and/or the Released Persons in any civil, criminal, or
administrative proceeding in any court, administrative agency, or other tribunal. The Defendants
and the Released Persons may file the Stipulation and/or the Judgment in any action that may be
brought against them in any state or federal court to support a defense or counterclaim based on
principles of res judicata, collateral estoppel, release, good faith settlement, judgment bar or
reduction, or any other theory of claim preclusion or issue preclusion or similar defense or
counterclaim.

     5. Exhibits. The Exhibits to this Stipulation are material and integral parts and are
fully incorporated by this reference.

     6. Modification. The Stipulation may be amended or modified only by a writing signed
by or on behalf of all Settling Parties or their respective successors-in-interest.

     7. Entire Agreement. This Stipulation and the attached Exhibits constitute the entire
agreement among the parties and no representations, warranties or inducements have been made to any
party concerning the Stipulation or its Exhibits, other than the representations, warranties, and
covenants in such documents. Except as otherwise provided, each party shall bear its own costs.

     8. Warrant of Authority. Each counsel or other Person executing the Stipulation or
its Exhibits on behalf of any party warrants that such Person has the full authority to do so.

     9. Counterparts. The Stipulation may be executed in one or more counterparts. Each
executed counterpart shall be deemed to be one and the same instrument. A complete set of original
executed counterparts shall be filed with the Court.

16

 

EXECUTION COPY

     10. Binding Effect. The Stipulation shall be binding up, and inure to the benefit of,
the successors and assigns of the parties hereto.

     11. Judicial Enforcement. The Court shall retain jurisdiction to implement and
enforce the terms of the Stipulation, and all parties submit to the jurisdiction of the Court for
such purposes.

     12. Choice of Law. This Stipulation and the Exhibits shall be considered to have been
negotiated, executed, and delivered, and to be wholly performed, in the State of Tennessee, and the
rights and obligations of the parties to the Stipulation shall be construed and enforced in
accordance with, and governed by, the internal, substantive laws of the State of Tennessee without
giving effect to that State’s choice of law principles.

17

 

EXECUTION COPY

     IN WITNESS WHEREOF, the parties hereto have caused the Stipulation to be executed, by their
duly authorized attorneys as of the date set forth above.

     FOR THE REPRESENTATIVE PLAINTIFFS:

	 	 	 	 	 
	 	 	 
	Executed:  August 21, 2008. 	/s/ James G. Stranch, III
 	 
	 	James G. Stranch, III 	 
	 	Joe P. Leniski, Jr.

BRANSTETTER, STRANCH & JENNINGS

227 Second Avenue, North 4th Floor

Nashville, TN 37201 	 
	 

Lead Counsel for Plaintiffs

Benjamin Rozwood

ROBBINS UMEDA & FINK LLP

601 West Ash Street, Suite 1800

San Diego, CA 92101

Darren J. Robbins

COUGHLIN STOIA GELLER RUDMAN

& ROBBINS LLP

655 West Broadway, Suite 1900

San Diego, CA 92101

D. Bruce Shine

SHINE & MASON

433 East Center Street

Kingsport, TN 37660

Liason Counsel for Plaintiffs

18

 

EXECUTION COPY

     FOR DEFENDANTS:

	 	 	 	 	 
	 	 	 
	Executed:  August 20, 2008. 	/s/ John C. Millian
 	 
	 	John C. Millian 	 
	 	Daniel A. Cantu

GIBSON, DUNN & CRUTCHER LLP

1050 Connecticut Avenue N.W.

Washington, DC 20036

(202) 955-8500 	 
	 

Andrew L. Colocotronis (BPR No. 017052)

Ashley M Lowe (BPR No. 20867)

BAKER, DONELSON, BEARMAN, CALDWELL &

BERKOWITZ, P.C.

900 S. Gay Street, Suite 2200

Knoxville, TN 37902

(865) 549-7000

Counsel for Defendants

19

 

EXECUTION COPY

	 
	EXHIBIT A TO

STIPULATION OF SETTLEMENT

CERTAIN GOVERNANCE IMPROVEMENTS

INSTITUTED BY KING SINCE MARCH 2003

     The Defendants acknowledge and agree that the pendency and prosecution of the shareholder
derivative litigation and related litigation in federal court were significant factors underlying
the decision by King Pharmaceuticals, Inc. to agree to the series of changes set forth below with
respect to the Company’s corporate governance practices.

     1. Declassified Board. By amending its charter on May 16, 2007, King provided for the
elimination of its classified Board structure and the institution of annual elections for all
members of the Board of Directors.

     2. Lead Independent Director. By amending its Corporate Governance Guidelines on
August 1, 2007, King established the position of Lead Independent Director on its Board of
Directors. According to the Corporate Governance Guidelines, the Lead Independent Director is
required to regularly meet with the Chairman of the Board, facilitate communications with members
of the Board, and assist in setting the agenda of Board and Committee meetings. The Lead
Independent Director may call for, set the agenda of, and preside over all meetings of
non-management directors. The Lead Independent Director responds to shareholders or other parties
wishing to communicate with the Board other than through King’s management. The Lead Independent
Director may coordinate the annual Board self-evaluation process.

     3. Internal Audit. As recognized by the Audit Committee Charter adopted on March 11,
2004, King now employs internal auditors. The internal auditors report to the Audit Committee on
the results of internal audits and any allegations regarding accounting, internal control, or
auditing matters.

A-1

 

EXECUTION COPY

     4. Corporate Compliance Officer. As recognized by the Form 10-Q filed September 30,
2003 and the Corporate Code of Conduct and Ethics adopted on October 23, 2003, King established the
position of Corporate Compliance Officer (“CCO”) on August 1, 2003. As stated by the Corporate
Code of Conduct and Ethics adopted on October 23, 2003, the CCO is responsible for preventing,
detecting and remedying violations of laws and corporate policies. As recognized by the Audit
Committee Charter adopted on March 11, 2004, the CCO has direct access to the Audit Committee, and
may not be terminated without the consent of the Audit Committee.

     5. Director Perquisites. As recognized by changes in the 2005 Proxy Statement, in
January 2004 King established policies limiting the use of corporate aircraft by non-management
directors.

A-2

 

EXECUTION COPY

	 
	EXHIBIT
B TO

STIPULATION OF SETTLEMENT

ADDITIONAL GOVERNANCE IMPROVEMENTS

TO BE ADOPTED BY KING

     1. The Board of Directors.

     (a) The Company shall, by the annual meeting of shareholders in 2010, declassify its Board and
have every Director serve one-year terms and stand for election or re-election each year;

     (b) No Director, other than the Chief Executive Officer (“CEO”), shall maintain a position on
the Board in excess of 15 consecutive one-year terms. One-year terms shall not be considered
“consecutive” if separated by at least one intervening term;

     (c) No Director shall sit on more than three public, for profit corporate boards at any one
time;

     (d) No Director who is a full-time employee shall sit on more than two other public,
for-profit company boards;

     (e) If the Chairman of the Board is not independent from King pursuant to the elements of the
Director Independence Guidelines, the Board shall appoint as Lead Independent Director a member of
the Board who meets the Board’s independence requirements.

     2. Director Independence.

     To be deemed “independent” in any calendar year, a Director must satisfy the following
qualifications:

     (a) Has not been employed by the Company or its subsidiaries or affiliates for the past 5
years;

B-1

 

EXECUTION COPY

     (b) Has not received, during the current calendar year or any of the three immediately
preceding calendar years, remuneration, directly or indirectly, other than de minimis remuneration
(less than $75,000), as a result of service as, or being affiliated with an entity that serves as
an advisor, consultant, or legal counsel to the Company or to a member of the Company’s senior
management;

     (c) Has no personal services contract(s) with the Company, or any member of the Company’s
senior management;

     (d) Is not an employee or officer with a not-for-profit entity that receives contributions
that exceed the greater of $750,000 or 1% of the not-for-profits’ annual revenue from the Company,
its Directors or executive officers;

     (e) Is not employed by a public company at which an executive officer of the Company serves as
a director;

     (f) Has not had any of the relationships described in subsections (a) — (e) above, with any
affiliate of the Company;

     (g) Is not a member of the immediate family of any person described in subsections (a) — (f)
above; and

     (h) Does not have beneficial ownership interest of 5% or more in an entity that has received
remuneration, directly or indirectly, other than de minimis remuneration, from the Company, its
subsidiaries, or affiliates. Remuneration is deemed de minimis remuneration if such remuneration
is $75,000 or less in any calendar year, or if such remuneration is paid to an entity, it (i) did
not for the calendar year exceed the greater of $1 million, or 2% of the gross revenues of the
entity; or (ii) did not result in an increase in the compensation received by the director from
that entity.

B-2

 

EXECUTION COPY

     3. Lead Independent Director.

     (a) As described above, if the Chairman of the Board is a non-management director, then he or
she will act as presiding director of, and establish the agendas for, meetings of non-management
directors. Otherwise, the independent directors will annually elect, via secret ballot, one of
their number to act as Lead Independent Director;

     (b) No Director may serve as Lead Independent Director for more than 6 consecutive years;

     (c) The Lead Independent Director shall regularly meet with the Chairman of the Board,
facilitate communications among members of the Board, and perform other functions as prescribed by
the Corporate Governance Guidelines, including the following:

     (i) Advise the Chairman of the Board as to an appropriate schedule of Board meetings;

     (ii) Consult with the Chairman of the Board in establishing agendas for Board meetings and
consult with the chair of each Committee in establishing agendas for Committee meetings; and

     (iii) Advise the Chairman of the Board as to the quality, quantity, and timeliness of the flow
of information from the Company’s management that is necessary for the Independent Directors to
effectively and responsibly perform their duties; the Lead Independent Director, like all
Directors, may specifically request the inclusion of certain material;

     (d) Recommend to the Chairman of the Board, or Committee chairs, the retention, at King’s
expense, of such independent legal, financial, or other advisors as deemed appropriate in
connection with the performance of the Board’s duties, subject to established procedures;

B-3

 

EXECUTION COPY

     (e) Assist, as a member or ex officio member of the Corporate Governance Committee, in
providing oversight of the corporate governance affairs of the Board;

     (f) Act as liaison between the Independent Directors and the Chairman of the Board on
sensitive issues;

     (g) Participate in evaluating, as a member or ex officio member of the Compensation and Human
Resources Committee, the performance of the CEO and meet with the CEO to discuss the Board’s
evaluations; and

     (h) Provide advice to the Board, as necessary, regarding Committee organization, structure,
charters, effectiveness and related matters.

     4. Compensation and Human Resources Committee (“Compensation Committee”).

     The Compensation Committee shall select and retain an independent compensation consultant to
provide advice and guidance to the committee as needed. The consultant shall, at such times as
requested by the Committee, conduct a comparative market study of the Company’s executive
compensation policies, practices and procedures. This study shall be delivered to the Compensation
Committee for its use in evaluating and revising, if necessary, the compensation structure for the
Company’s management;

     5. Nominating and Corporate Governance Committee (“Nominating Committee”).

     The Nominating Committee shall meet at least four times per year.

     6. Director Responsibilities. Within 24 months of the effective date of this
Agreement, each member of the Board of Directors shall attend a director education program through
an appropriate college or university (e.g., Stanford Law School Directors College, Vanderbilt
Directors College, Duke University or any other ISS-approved director education program). All new
Directors shall be required to attend a director education program within 12

B-4

 

EXECUTION COPY

months of election to the Board of Directors, unless such individual had already attended such
program within the previous 36 months.

     7. Internal Audit. The Internal Auditor, who shall be appointed by the Corporate
Compliance Officer and who will report to the Audit Committee at least twice a year, shall monitor
the Company’s internal control environment, revenue and expense recognition practices and its
accounting practices. The Internal Auditor shall be responsible for devising an Internal Audit
Plan for each fiscal year which will be presented to the Audit Committee. The Internal Audit Plan
shall include an assessment of the internal controls environment in order to ensure that
appropriate financial reporting procedures are in place and being followed by the Company’s
employees. The Company shall be subject to an internal audit review each year. A written report
shall be prepared for each internal audit performed describing the internal audit’s findings,
opinions and recommendations, if any. These written reports shall be directed to the CEO, Chief
Operating Officer, Chief Financial Officer, the Independent Directors and the Audit Committee of
the Board for their review. If King’s management or the Board determines that remedial action is
necessary, such remedial action shall be taken.

     8. Accounting Policies.

     (a) The Company’s revenue and expense recognition policies shall conform to the requirements
of Generally Accepted Accounting Principles (“GAAP”) as currently in effect or as amended. The CFO
shall report to the Board on an annual basis regarding the Company’s revenue and expense
recognition policies.

     (b) With respect to the Company’s recognition of revenues in its financial statements, any
material revenue recognition or expense reduction based upon non-recurring items shall be clearly
and prominently disclosed in the quarterly statements. To the extent revenue, net income

B-5

 

EXECUTION COPY

or expense were benefited by the material modification or adjustment of any reserve or
contingency amounts, such modification or adjustment shall be clearly disclosed in the Company’s
quarterly statements.

     (c) The Company will not report “pro forma” results without at the same time and in the same
document reporting its GAAP results.

     (d) At the regularly-scheduled Board meeting following each quarter, the Company’s Chief
Financial Officer or his designee shall provide a report as to the Company’s financial condition,
including, but not limited to, a discussion of material increases in expenses, if any, and material
decreases in revenues and earnings, if any.

B-6

 

EXECUTION COPY

	 
	EXHIBIT
C TO

STIPULATION OF SETTLEMENT

FORM OF PRELIMINARY APPROVAL ORDER

[PROPOSED] ORDER PRELIMINARILY APPROVING

SETTLEMENT AND PROVIDING FOR NOTICE

     WHEREAS, a derivative action is pending before this Court entitled In re: King
Pharmaceuticals, Inc. Derivative Litigation, Lead Case No. BOO19077(M) (the “Litigation”);

     WHEREAS, the parties having made application, pursuant to Rule 23.06 of the Tennessee Rules of
Civil Procedure (“TRCP”), for an order approving the settlement of this Litigation, in accordance
with a Stipulation of Settlement dated as of ___(the “Stipulation”), which, together with
the Exhibits annexed thereto sets forth the terms and conditions for a proposed settlement of the
Litigation and for dismissal of the Litigation with prejudice upon the terms and conditions set
forth therein; and the Court having read and considered the Stipulation and the Exhibits annexed
thereto; and

     WHEREAS, all defined terms contained herein shall have the same meanings as set forth in the
Stipulation.

     NOW, THEREFORE, IT IS HEREBY ORDERED:

     1. The Court does hereby preliminarily approve the Stipulation and the Settlement set forth
therein, subject to further consideration at the Settlement Hearing described below.

     2. The Court finds that, in accordance with TRCP 23.06, the representative Plaintiffs appear
to have fairly and adequately represented and protected the interests of shareholders of King
Pharmaceuticals, Inc. (“King” or “the Company”) in this litigation.

     3. The Court hereby stays all proceedings in this action pending the Court’s consideration of
the proposed Settlement and the Settlement Hearing.

C-1

 

EXECUTION COPY

     4. A hearing (the “Settlement Hearing”) shall be held before this Court on ___, 2008,
at ___., at the Chancery Court for Sullivan County at ___, Tennessee, to
determine whether the proposed Settlement of the derivative claims on the terms and condition
provided for in the Stipulation is fair, reasonable, adequate and in the best interests of the
Company and its shareholders; whether a Judgment as provided in Exhibit E to the Stipulation should
be entered herein; and to approve the award of fees and expenses to Plaintiffs’ Counsel. The Court
may adjourn the Settlement Hearing without further notice to King shareholders.

     5. The Court approves, as to form and content, the Notice of Settlement of Derivative Action
substantially in the form of Exhibit D (the “Notice”) to the Stipulation.

     6. Not later than ___, 2008 (the “Notice Date”), Defendants shall cause a copy of the
Notice to be published in Investor’s Business Daily and furnished to the United States Securities
and Exchange Commission, along with a copy of the Stipulation, as exhibits to a current report on
Form 8-K published by the Company.

     7. The Court finds that the distribution of the Notice substantially in the manner and form
set forth above in Paragraph 6 constitutes adequate and sufficient notice to the King stockholders
pursuant to Tenn. Code Ann. § 48-17-401(c), TRCP 23.06, due process, and all other applicable law.

     8. By ___, Defendants shall file with the Court an appropriate Declaration with
respect to the preparation and publishing of the Notice.

     9. King, its shareholders, Released Persons, and Representative Plaintiffs, individually and
derivatively on behalf of the King Shareholders and by operation of the

C-2

 

EXECUTION COPY

Judgment, shall be bound by all determinations and judgments in the Litigation concerning the
settlement.

     10. Any King shareholder may enter an appearance in the Litigation, at his, her or its own
expense, individually or through counsel of their own choice. If they do not enter an appearance,
they will be represented by Plaintiffs’ Counsel.

     11. Pending final determination of whether the settlement should be approved, neither the
Plaintiffs nor any King shareholder, either directly, representatively, or in any other capacity,
shall commence or prosecute against any of the Released Parties, any action or proceeding in any
court or tribunal asserting any of the Released Claims.

     12. Any King shareholder may appear and show cause, if he, she or it has any reason why the
proposed settlement of the Litigation should not be approved as fair, reasonable and adequate, or
why a Judgment should not be entered thereon, or why attorneys’ fees and expenses should not be
awarded to Plaintiffs’ Counsel as agreed between the parties; provided, however, that no King
shareholder or any other person shall be heard or entitled to contest the approval of the terms and
conditions of the proposed settlement, or, if approved, the Judgment to be entered thereon
approving the same, or the attorneys’ fees and expenses to be awarded Plaintiffs’ Counsel, unless
that person has served on the following counsel (delivered by hand or sent by first class mail)
written objections and copies of any papers and briefs in support thereof on or before
___: Branstetter, Stranch & Jennings PLLC, James G. Stranch, III, 227 Second Avenue,
North Nashville, TN 37201; Robbins Umeda & Fink, LLP, S. Benjamin Rozwood, 601 West Ash Street,
Suite 1800, San Diego, CA 92101; Coughlin Stoia Geller Rudman & Robbins LLP, Darren J. Robbins, 655
West Broadway, Suite 1900, San Diego, CA 92101; Gibson Dunn & Crutcher, LLP, John C. Millian,
Esq., 1050 Connecticut Avenue, N.W.,

C-3

 

EXECUTION COPY

Washington, D.C. 20036; and Baker, Donelson, Bearman, Caldwell & Berkowitz, PC, Andrew L.
Colocotronis, P.O. Box 1792, Knoxville, TN 37901, and filed said objections, papers and briefs with
the Clerk of the Chancery Court for Sullivan County, Tennessee on or before ___. Any
objection must contain a written notice of the grounds for opposing the Settlement and/or the award
of attorneys’ fees and expenses. In addition, any objecting shareholder must demonstrate the
objecting shareholder’s ownership of King stock by including:

          (a) the objecting person’s name, address and telephone number;

          (b) formal proof of the number of shares of King Pharmaceuticals common stock purchased and
owned by the objecting person as of the record date of ___and the date such shares were
acquired; and

          (c) a statement of the reasons for objection.

     13. Any shareholder who does not make his, her or its objection in the manner provided shall
be deemed to have waived such objection and shall forever be foreclosed from making any objection
to the fairness or adequacy of the proposed settlement as incorporated in the Stipulation unless
otherwise ordered by the Court.

     14. All papers in support of the settlement shall be filed with the Court and served by
___.

     15. Neither the Stipulation, nor any of its terms or provisions, nor any of the negotiations
or proceedings connected with it, shall be construed as an admission or concession by King or the
Released Persons, of the truth of any of the allegations in the Litigation, or of any liability,
fault, or wrongdoing of any kind.

     16. The Court reserves the right to adjourn the date of the Settlement Hearing without further
notice to King shareholders, and retains jurisdiction to consider all further applications

C-4

 

EXECUTION COPY

arising out of or connected with the proposed settlement. The Court may approve the
settlement, with such modifications as may be agreed to by the Settling Parties, if appropriate,
without further notice to King shareholders.

     IT IS SO ORDERED.

	 	 	 	 	 
	DATED:
	 	 	 	 
	 

	 	 
	 	 
	 

	 	 	 	THE HONORABLE JOHN S. McLELLAN, III

C-5

 

EXECUTION COPY

	 
	EXHIBIT
D TO

STIPULATION OF SETTLEMENT

NOTICE OF SETTLEMENT OF DERIVATIVE ACTION

NOTICE OF SETTLEMENT OF DERIVATIVE ACTION

TO: ALL HOLDERS OF THE COMMON STOCK OF KING PHARMACEUTICALS,

INC. AS OF [DATE OF SETTLEMENT]

     The purpose of this Notice is to inform you, as shareholders of King Pharmaceuticals, Inc.
(“King” or “the Company”), of the above-captioned shareholder derivative action (the “Litigation”)
pending in the Chancery Court for Sullivan County at Bristol, Tennessee (the “Court”), and of a
proposed settlement of the Litigation (the “Settlement”) pursuant to the terms of a Stipulation of
Settlement (the “Stipulation”) entered into between certain parties in the Litigation. This Notice
also informs you of your right to participate in a hearing to be held on [date] at [time] in
Courtroom [courtroom number] of the Sullivan County Chancery Court, 801 Anderson Street, Suite 239,
Bristol, Tennessee 37620 (the “Approval Hearing”) to consider: (a) whether the terms and conditions
of the Stipulation, including the negotiated payment of attorneys’ fees and expenses to Plaintiffs’
Counsel, are fair, reasonable, adequate, and in the best interests of King and its stockholders;
(b) whether to enter final judgment dismissing the Litigation with prejudice and extinguishing and
releasing any and all Released Claims as against the Released Persons (as those terms are defined
in the Stipulation); and such other matters as may properly come before the Court.

     In the Litigation, the Plaintiffs alleged, derivatively on behalf of King, that the
Defendants, current and former officers and directors of King, breached their fiduciary duties in
violation of Tenn. Code Ann. §§47-18-301 et seq. and 48-58-403, by causing the Company to underpay
rebates owed to the federal and state governments under Medicaid and other government programs from
1998 through 2003, and in causing the Company to adopt an improper methodology for establishing
accruals for product returns reserves from 2000 through 2002, which ultimately led the Company to
restate certain financial statements. Plaintiffs also allege that the Company’s independent
auditor, PricewaterhouseCoopers, LLC (“PwC”), aided and abetted the Defendants’ alleged breaches of
fiduciary duty. The Defendants have denied and continue to deny any wrongdoing or that they
breached their fiduciary duties or caused King to suffer any injury.

     Pursuant to the Stipulation and in consideration of the Settlement of the Litigation, the
Company has agreed to adopt certain corporate governance measures relating to: (1) the structure of
the Board of Directors, (2) the criteria for director independence, (3) the duties of the Lead
Independent Director, (4) the duties of various committees of the Board of Directors, (5) the
function of the Internal Auditor, and (6) certain accounting policies. The Company has also agreed
that the pendency and prosecution of the shareholder derivative litigation was a significant factor
underlying its decision to adopt numerous improvements to the Company’s corporate governance
practices between March of 2003, when the Litigation began, and July of

D-1

 

EXECUTION COPY

2008, when the parties entered a tentative settlement in this Litigation. These improvements
include: (1) a staged declassification of the Board; (2) establishment of the position of Lead
Independent Director; (3) employment of an internal auditor that reports directly to the Audit
Committee; and (4) establishing the position of Corporate Compliance Officer (“CCO”). In addition
to adopting significant corporate governance reforms, the Settlement provides for payment of
attorneys’ fees and expenses to plaintiffs’ counsel of $13.5 million.

     Any stockholder of King who objects to any aspect of the Settlement or who otherwise wishes to
be heard may appear in person or by his attorney at the Approval Hearing. To do so, however, an
objector must, no later than fourteen (14) days prior to the Approval Hearing, file with the Clerk
of Court a written objection setting forth the grounds for such objection and serve copies by hand
or overnight delivery to each of the following counsel:

James G. Stranch, III

BRANSTETTER, STRANCH & JENNINGS, PLLC

227 Second Avenue, North, 4th Floor

Nashville, TN 37201

S. Benjamin Rozwood

ROBBINS UMEDA & FINK, LLP

601 West Ash Street, Suite 1800

San Diego, CA 92101

Darren J. Robbins

COUGHLIN STOIA GELLER RUDMAN & ROBBINS LLP

655 West Broadway, Suite 1900

San Diego, CA 92101

John C. Millian

GIBSON, DUNN & CRUTCHER LLP

1050 Connecticut Ave., NW

Washington, D.C. 20036

     Attendance at the Approval Hearing is not necessary for the objection to be considered by the
Court; however, persons wishing to be heard orally in opposition to the approval of the Settlement
are required to indicate in their written objection their intention to appear at the hearing.

     Dated: __________________

D-2

 

EXECUTION COPY

	 
	EXHIBIT
E TO

STIPULATION OF SETTLEMENT

FORM OF FINAL JUDGMENT

     This matter came before the Court for hearing pursuant to the Order of this Court, dated
_________, on the application of the parties for approval of the Settlement set forth in
the Stipulation of Settlement dated August ___, 2008 (the “Stipulation”). The Court having
considered all matters submitted to it at the hearing and having considered all papers filed and
proceedings had herein and otherwise being fully informed in the premises and good cause appearing
therefore, the respective parties having appeared by their attorneys of record; the Court having
heard and considered evidence in support of the proposed Settlement; the attorneys for the
respective parties having been heard; an opportunity to be heard having been given to all other
persons requesting to be heard in accordance with the Preliminary Approval Order; the Court having
determined that the notice to King Pharmaceuticals, Inc. (“King” or “the Company”) shareholders,
preliminarily certified pursuant to the aforesaid Preliminary Approval Order, and to all others
entitled to receive notice, was adequate and sufficient for all purposes; and the entire matter of
the proposed Settlement having been heard and considered by the Court,

     IT IS HEREBY ORDERED, ADJUDGED AND DECREED that:

     1. This Judgment incorporates by reference the definitions in the Stipulation, and all terms
used herein shall have the same meanings as set forth in the Stipulation.

     2. This Court has jurisdiction over the subject matter of this Action and over all parties to
this Action, including all shareholders of King.

     3. The Notice of Settlement of Derivative Litigation (the “Notice”) has been given to the
shareholders, pursuant to and in the manner directed by the Preliminary Approval Order, proof of
publication of the Notice to the Class was filed with the Court, and full opportunity to

E-1

 

EXECUTION COPY

be heard has been offered to all parties, shareholders, and persons in interest. The form and
manner of the Notice is hereby determined to have been the best notice practicable under the
circumstances and to have been given in full compliance with each of the requirements of Tenn. Code
Ann. § 48-17-401(c), Tennessee Rules of Civil Procedure (“TRCP”) 23.06,due process, and any other
applicable law, and it is further determined that all shareholders and the Company are bound by
this Order and Final Judgment.

     4. Based on the record in the Action, the provisions of TRCP 23.06 have been satisfied and the
Action has been properly maintained according to the provisions of TRCP 23.06, as this Court finds
that the representative Plaintiffs have fairly and adequately represented and protected the
interests of King’s shareholders.

     5. The Court adjudges the terms of the Settlement to be fair, reasonable, adequate, and in the
best interests of the King and its shareholders. The parties to the Stipulation are hereby
authorized and directed to comply with and to consummate the Settlement in accordance with its
terms and provisions.

     6. This Order and Final Judgment shall not constitute any evidence of or admission by any
party herein that any wrongdoing has been committed by any of the parties to the Action and shall
not be deemed to create any inference that any liability exists there for.

     7. Upon the Effective Date, King, the Representative Plaintiffs, the Representative Plaintiffs
on behalf of King, and any other King Shareholder on behalf of King shall be deemed to have and by
operation of this Order and Final Judgment fully, finally, and forever released, relinquished and
discharged all Released Claims against the Released Persons.

     8. Upon the Effective Date, King and each of the Released Persons shall be deemed to have, and
by operation of the Judgment shall have, fully, finally and forever released,

E-2

 

EXECUTION COPY

relinquished, and discharged each and all of the Representative Plaintiffs, and counsel to the
Representative Plaintiffs, from all claims (including Unknown Claims) arising out of, relating to,
or in connection with the institution, prosecution, assertion, settlement, or resolution of the
Action or the Released Claims.

     9. The releases contemplated by the Stipulation extend to claims that any person granting a
release (the “Releasing Person”) does not know or suspect to exist at the time of the release,
which, if known, might have affected the Releasing Person’s decision to enter into this release.
The Releasing Person will be deemed to relinquish, to the extent it is applicable, and to the full
extent permitted by law, the provisions, rights, and benefits of § 1542 of the California Civil
Code which provides:

A general release does not extend to claims which the creditor does not know
or suspect to exist in his or her favor at the time of executing the
release, which if known by him or her must have materially affected his or
her settlement with the debtor.

In addition, the Releasing Person will be deemed to relinquish, to the extent they are applicable,
and to the full extent permitted by law, the provisions, rights, and benefits of any law of any
state or territory of the United States, federal law, or principle of common law, which is similar,
comparable, or equivalent to § 1542 of the California Civil Code.

     10. The Action is dismissed with prejudice, subject only to compliance by the parties with the
terms of the Stipulation and this Order, and the Clerk of the Court is directed to enter and docket
this Order and Final Judgment. Plaintiffs, King, all shareholders of King, their representative
affiliates, and anyone claiming through or for the benefit of any of them are permanently enjoined
from asserting, commencing, prosecuting, assisting, instigating, or in any way participating in the
commencement or prosecution of any action or other proceeding, in any

E-3

 

EXECUTION COPY

forum, asserting against any of the Released Persons any Settled Claims, either directly,
representatively, derivatively, or in any other capacity.

     11. Plaintiffs’ Counsel are awarded attorneys’ fees and reimbursement of expenses incurred in
connection with the Action in the total amount of $13,500,000.00, plus Net Escrow Account Interest
on that amount (the “Fee and Expense Award”), which sum the Court finds to be fair and reasonable.

     12. The Fee and Expense Award shall be paid by the Escrow Agent to Plaintiffs’ Counsel, as
instructed by James Stranch of Branstetter, Stranch & Jennings, PLC, within (5) business days from
the date of this Judgment. In the event that the Settlement is not ultimately consummated, or in
the event the Fee and Expense Award is reduced or disallowed in whole or in part on or after
appeal, the Fee and Expense Award paid to Plaintiffs’ Counsel from the Escrow Fund (or if
applicable the amount by which the Fee and Expense Award previously paid to Plaintiffs’ Counsel
exceeds the amount ultimately approved and awarded), shall together with interest or other earnings
on that amount (or if applicable, excess amount) shall be repaid to King or such other entities as
King may designate within (a) five business days after written notification of such event is sent
by counsel for King, or (b) five business days after receipt of specific payment instructions from
King or its counsel, whichever date is later.

     13. The Court finds that during the course of the Action, the parties and their counsel at all
times complied with TRCP 11.

     14. In the event that the Settlement does not become effective in accordance with the terms of
the Stipulation, then this Order and Final Judgment shall be rendered null and void to the extent
provided by and in accordance with the Stipulation and shall be vacated and, in such

E-4

 

EXECUTION COPY

event, all orders entered and releases delivered in connection herewith shall be null and void
to the extent provided by and in accordance with the Stipulation.

     15. Without affecting the finality of this Order and Final Judgment in any way, this Court
hereby retains continuing jurisdiction over: (a) implementation of this settlement; and (b) all
parties thereto and all Class Members thereto for the purpose of construing, enforcing and
administering the Stipulation.

     16. There is no just reason for delay in the entry of this Order and Final Judgment and
immediate entry by the Clerk of the Court is expressly directed pursuant to TRCP 54.02.

     IT IS SO ORDERED.

	 	 	 	 	 
	DATED:
	 	 	 	 
	 

	 	 
	 	 
	 

	 	 	 	THE HONORABLE JOHN S. McLELLAN, III

E-5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}]]