Document:

exv10w1

Exhibit 10.1

KING PHARMACEUTICALS, INC.

INCENTIVE PLAN

OPTION CERTIFICATE

     This Certificate, when executed by a duly authorized officer of King Pharmaceuticals, Inc.
(the “Company”), evidences the grant to the Participant named below of an Option to purchase shares
of the Common Stock of the Company.

	 	 	 	 	 
	1.

	 	Name of Participant:
	 	[Participant Name]
	 
	 	 	 	 
	2.

	 	Social Security Number of Participant:
	 	[Social Security Number]
	 
	 	 	 	 
	3.

	 	Date of Grant:
	 	[Grant Date]
	 
	 	 	 	 
	4.

	 	Type of Grant:
	 	[Grant Type]
	 
	 	 	 	 
	5.

	 	Maximum Number of Shares for
which this Option is exercisable:
	 	[Number of Shares Granted]
	 
	 	 	 	 
	6.

	 	Exercise (purchase) price per share:
	 	[Grant Price]
	 
	 	 	 	 
	7.	 	Vesting Schedule: This Option shall become exercisable (and the Shares issued upon exercise shall be vested) as follows:

     On or after the first anniversary of the date of grant, up to 33% of the Shares

     On or after the second anniversary of the date of grant, an additional 33% of the Shares

     On or after the third anniversary of the date of grant, an additional 34% of the Shares

The number of shares included in the first two tranches shall be rounded down to the nearest
whole number, while the number of shares included in the third and final tranche shall be
the remaining unvested balance of the Shares.

This Option is subject to and governed by the terms of this Option Certificate, the Option
Agreement attached hereto and incorporated by reference herein and the Company’s Incentive Plan.

	 	 	 	 	 
	 	KING PHARMACEUTICALS, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	Brian A. Markison 	 
	 	 	Title:  	President and Chief Executive Officer 	 
	 

FORM
SO-3-2010

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KING PHARMACEUTICALS, INC.

NONSTATUTORY STOCK OPTION AGREEMENT

     AGREEMENT made as of the Date of Grant set forth on the Option Certificate attached hereto,
between King Pharmaceuticals, Inc. (the “Company”), a Tennessee corporation having a principal
place of business at 501 Fifth Street, Bristol, Tennessee 37620, and the individual identified on
the Option Certificate (the “Participant”).

     WHEREAS, the Company desires to grant to the Participant an Option to purchase shares of its
common stock, no par value per share (the “Shares”), under and for the purposes set forth in the
Company’s Incentive Plan (the “Plan”) with the specific terms of such Option grant as set forth on
the Option Certificate attached hereto;

     WHEREAS, the Company and the Participant understand and agree that any terms used and not
defined herein have the same meanings as in the Plan; and

     WHEREAS, the Company and the Participant each intend that the Option granted herein shall be a
Nonstatutory Stock Option.

     NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth and for other
good and valuable consideration, the parties hereto agree as follows:

     1. GRANT OF OPTION.

     The Company hereby grants to the Participant the right and option to purchase all or any part
of an aggregate of the number of Shares listed on the Option Certificate attached hereto, subject
to adjustment upon an Adjustment Event after the date hereof as provided in the Plan, on the terms
and conditions and subject to all the limitations set forth herein, under United States securities
and tax laws, and in the Plan, which is incorporated herein by reference. The Participant
acknowledges receipt of a copy of the Plan.

     2. PURCHASE PRICE.

     The purchase price of the Shares covered by the Option shall be the price per Share as set
forth on the Option Certificate attached hereto, subject to adjustment upon an Adjustment Event
after the date hereof as provided in the Plan (the “Purchase Price”). Payment shall be made in
accordance with Section 6.4 of the Plan.

     3. EXERCISABILITY OF OPTION.

     Subject to the terms and conditions set forth in this Agreement and the Plan, the Option
granted hereby shall become exercisable as set forth on the Option Certificate attached hereto
which rights are cumulative and are subject to the other terms and conditions of this Agreement and
the Plan.

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     4. TERM OF OPTION.

     The Option shall terminate ten years from the Date of Grant set forth on the Option
Certificate attached to this Agreement, but shall be subject to earlier termination as provided
herein or in the Plan.

     If the Participant ceases to be an employee of the Company or of a Subsidiary (for any reason
other than the death, Disability or Approved Retirement of the Participant or termination of the
Participant for Cause (as defined in the Plan)), the Option may be exercised, if it has not
previously terminated, at any time within three months of the date the Participant ceases to be an
employee of the Company or a Subsidiary, or within the originally prescribed term of the Option,
whichever is earlier, but may not be exercised thereafter. In such event, the Option shall be
exercisable only to the extent that the Option has become exercisable and is in effect at the date
of such cessation of employment.

     Notwithstanding the foregoing, in the event of the Participant’s Disability or death within
three months after the termination of employment, the Participant or the Participant’s Survivors
may exercise the Option within one year after the date of the Participant’s termination of
employment, but in no event after the date of expiration of the term of the Option.

     In the event the Participant’s employment is terminated by the Company or a Subsidiary for
Cause, the Participant’s right to exercise any unexercised portion of this Option shall cease
immediately as of the time the Participant is notified his or her employment is terminated for
Cause, and this Option shall thereupon terminate. Notwithstanding anything herein to the contrary,
if subsequent to the Participant’s termination, but prior to the exercise of the Option or any
portion thereof, the Committee determines that, either prior or subsequent to the Participant’s
termination, the Participant engaged in conduct which would constitute Cause, then the Participant
shall immediately cease to have any right to exercise all or any portion of the Option and this
Option shall thereupon terminate.

     In the event of the Disability of the Participant, as determined in accordance with the Plan,
the Option shall become immediately vested in full and may be exercised within one year after the
Participant’s termination of employment or, if earlier, within the term originally prescribed by
the Option.

     In the event of the death of the Participant while an employee of the Company or of a
Subsidiary, the Option shall become immediately vested in full and may be exercised by the
Participant’s Survivors within two years after the date of death of the Participant or, if earlier,
within the originally prescribed term of the Option.

     In the event a Participant’s employment terminates by reason of Approved Retirement in
accordance with the Plan, the Participant may exercise the Option at any time within the originally
prescribed term of the Option. In such event, the Option shall be exercisable only to the extent
that the Option has become exercisable and is in effect at the date of such cessation of
employment.

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     5. METHOD OF EXERCISING OPTION.

     Subject to the terms and conditions of this Agreement, the Option may be exercised by written
notice to the Company or its designee, in such form or by such electronic method as the Company
shall from time to time determine. Such notice shall state the number of Shares with respect to
which the Option is being exercised and shall be signed by the person exercising the Option.
Payment of the purchase price for such Shares shall be made in accordance with Section 6.4 of the
Plan. The Company shall deliver such Shares as soon as practicable after the notice shall be
received, provided, however, that the Company may delay issuance of such Shares until completion of
any action or obtaining of any consent, which the Company deems necessary under any applicable law
(including, without limitation, state securities or “blue sky” laws). The Shares as to which the
Option shall have been so exercised shall be registered in the Company’s share register in the name
of the person so exercising the Option (or, if the Option shall be exercised by the Participant and
if the Participant shall so request in the notice exercising the Option, shall be registered in the
Company’s share register in the name of the Participant and another person jointly, with right of
survivorship) and shall be delivered as provided above to or upon the written order of the person
exercising the Option. In the event the Option shall be exercised, pursuant to Section 4 hereof,
by any person other than the Participant, such notice shall be accompanied by appropriate proof of
the right of such person to exercise the Option. All Shares that shall be purchased upon the
exercise of the Option as provided herein shall be fully paid and nonassessable.

     6. PARTIAL EXERCISE.

     Exercise of this Option to the extent above stated may be made in part at any time and from
time to time within the above limits, except that no fractional share shall be issued pursuant to
this Option.

     7. NON-ASSIGNABILITY.

     The Option shall not be transferable by the Participant otherwise than by will or by the laws
of descent and distribution or pursuant to a qualified domestic relations order as defined by the
Code or Title I of the Employee Retirement Income Security Act or the rules thereunder. However,
the Participant, with the approval of the Committee, may transfer the Option for no consideration
to or for the benefit of a Family Member, subject to such limits as the Committee may establish,
and the transferee shall remain subject to all the terms and conditions applicable to the Option
prior to such transfer and each such transferee shall so acknowledge in writing as a condition
precedent to the effectiveness of such transfer. Except as provided in the previous sentence, the
Option shall be exercisable, during the Participant’s lifetime, only by the Participant (or, in the
event of legal incapacity or incompetency, by the Participant’s guardian or representative) and
shall not be assigned, pledged or hypothecated in any way (whether by operation of law or
otherwise) and shall not be subject to execution, attachment or similar process. Any attempted
transfer, assignment, pledge, hypothecation or other disposition of the Option or of any rights
granted hereunder contrary to the provisions of this Section 7, or the levy of any attachment or
similar process upon the Option shall be null and void.

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     8. NO RIGHTS AS STOCKHOLDER UNTIL EXERCISE.

     The Participant shall have no rights as a stockholder with respect to Shares subject to this
Agreement until registration of the Shares in the Company’s share register in the name of the
Participant. Except as is expressly provided in the Plan with respect to certain changes in the
capitalization of the Company, no adjustment shall be made for dividends or similar rights for
which the record date is prior to the date of such registration.

     9. CHANGE OF CONTROL.

     Section 11 of the Plan contains provisions covering the vesting of and treatment of Options
upon a Change of Control and is incorporated herein by reference.

     10. TAXES.

     The Participant acknowledges that upon exercise of the Option the Participant will be deemed
to have taxable income measured by the difference between the then fair market value of the Shares
received upon exercise and the price paid for such Shares pursuant to this Agreement. The
Participant acknowledges that any income or other taxes due from him or her with respect to this
Option or the Shares issuable pursuant to this Option shall be the Participant’s responsibility.

     The Participant agrees that the Company may withhold from the Participant’s remuneration, if
any, the minimum statutory amount of federal, state and local withholding taxes attributable to
such amount that is considered compensation includable in such person’s gross income. At the
Company’s discretion, the amount required to be withheld may be withheld in cash from such
remuneration, or in kind from the Shares otherwise deliverable to the Participant on exercise of
the Option. The Participant further agrees that, if the Company does not withhold an amount from
the Participant’s remuneration sufficient to satisfy the Company’s income tax withholding
obligation, the Participant will reimburse the Company on demand, in cash, for the amount
under-withheld.

     11. PURCHASE FOR INVESTMENT.

     Unless the offering and sale of the Shares to be issued upon the particular exercise of the
Option shall have been effectively registered under the Securities Act of 1933, as now in force or
hereafter amended (the “1933 Act”), the Company shall be under no obligation to issue the Shares
covered by such exercise unless and until the following conditions have been fulfilled:

	 	(a)	 	The person(s) who exercise the Option shall warrant to the Company, at the time
of such exercise, that such person(s) are acquiring such Shares for their own
respective accounts, for investment, and not with a view to, or for sale in connection
with, the distribution of any such Shares, in which event the person(s) acquiring such
Shares shall be bound by the provisions of the following legend which shall be endorsed
upon the certificate(s) evidencing the Shares issued pursuant to such exercise:

	 	 	 	“The shares represented by this certificate have been taken for investment
and they may not be sold or otherwise transferred by any person, including

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	 	 	 	a pledgee, unless (1) either (a) a Registration Statement with respect to
such shares shall be effective under the Securities Act of 1933, as amended,
or (b) the Company shall have received an opinion of counsel satisfactory to
it that an exemption from registration under such Act is then available, and
(2) there shall have been compliance with all applicable state securities
laws;” and

	 	(b)	 	If the Company so requires, the Company shall have received an opinion of its
counsel that the Shares may be issued upon such particular exercise in compliance with
the 1933 Act without registration thereunder. Without limiting the generality of the
foregoing, the Company may delay issuance of the Shares until completion of any action
or obtaining of any consent, which the Company deems necessary under any applicable law
(including without limitation state securities or “blue sky” laws).

     12. RESTRICTIONS ON TRANSFER OF SHARES.

     The Participant acknowledges and agrees that neither the Company, its shareholders nor its
directors and officers, has any duty or obligation to disclose to the Participant any material
information regarding the business of the Company or affecting the value of the Shares before, at
the time of, or following a termination of the employment of the Participant by the Company,
including, without limitation, any information concerning plans for the Company to make a public
offering of its securities or to be acquired by or merged with or into another firm or entity.

     13. NO OBLIGATION TO MAINTAIN RELATIONSHIP.

     The Company is not by the Plan or this Option obligated to continue the Participant as an
employee of the Company or a Subsidiary. The Participant acknowledges: (i) that the Plan is
discretionary in nature and may be suspended or terminated by the Company at any time; (ii) that
the grant of the Option is a one-time benefit which does not create any contractual or other right
to receive future grants of options, or benefits in lieu of options; (iii) that all determinations
with respect to any such future grants, including, but not limited to, the times when options shall
be granted, the number of shares subject to each option, the option price, and the time or times
when each option shall be exercisable, will be at the sole discretion of the Company; (iv) that the
Participant’s participation in the Plan is voluntary; (v) that the value of the Option is an
extraordinary item of compensation which is outside the scope of the Participant’s employment
contract, if any; and (vi) that the Option is not part of normal or expected compensation for
purposes of calculating any severance, resignation, redundancy, end of service payments, bonuses,
long-service awards, pension or retirement benefits or similar payments.

     14. NOTICES.

     Any notices required or permitted by the terms of this Agreement or the Plan shall be given by
recognized courier service, facsimile, registered or certified mail, return receipt requested,
addressed as follows:

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If to the Company:

King Pharmaceuticals, Inc.

400 Crossing Boulevard

Bridgewater, NJ 08807

Attention: Human Resources

If to the Participant:

at the last address for Participant appearing in the Company’s records

or to such other address or addresses of which notice in the same manner has previously been given.
Any such notice shall be deemed to have been given upon the earlier of receipt, one business day
following delivery to a recognized courier service or three business days following mailing by
registered or certified mail.

     15. GOVERNING LAW.

     This Agreement shall be construed and enforced in accordance with the law of the State of
Tennessee, without giving effect to the conflict of law principles thereof. For the purpose of
litigating any dispute that arises under this Agreement, the parties hereby consent to exclusive
jurisdiction in the State of Tennessee and agree that such litigation shall be conducted in the
state courts of Tennessee or the federal courts of the United States for the District of Tennessee.

     16. BENEFIT OF AGREEMENT.

     Subject to the provisions of the Plan and the other provisions hereof, this Agreement shall be
for the benefit of and shall be binding upon the heirs, executors, administrators, successors and
assigns of the parties hereto.

     17. ENTIRE AGREEMENT.

     This Agreement, together with the Option Certificate and the Plan, embodies the entire
agreement and understanding between the parties hereto with respect to the subject matter hereof
and supersedes all prior oral or written agreements and understandings relating to the subject
matter hereof. No statement, representation, warranty, covenant or agreement not expressly set
forth in this Agreement shall affect or be used to interpret, change or restrict, the express terms
and provisions of this Agreement, provided, however, in any event, this Agreement shall be subject
to and governed by the Plan.

     18. MODIFICATIONS AND AMENDMENTS.

     The terms and provisions of this Agreement may be modified or amended as provided in the Plan.

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     19. WAIVERS AND CONSENTS.

     Except as provided in the Plan, the terms and provisions of this Agreement may be waived, or
consent for the departure therefrom granted, only by written document executed by the party
entitled to the benefits of such terms or provisions. No such waiver or consent shall be deemed to
be or shall constitute a waiver or consent with respect to any other terms or provisions of this
Agreement, whether or not similar. Each such waiver or consent shall be effective only in the
specific instance and for the purpose for which it was given, and shall not constitute a continuing
waiver or consent.

     20. DATA PRIVACY.

     The Participant: (i) authorizes the Company and each Subsidiary, and any agent of the Company
or any Subsidiary administering the Plan or providing Plan recordkeeping services, to disclose to
the Company or any of its Subsidiaries such information and data as the Company or any such
Subsidiary shall request in order to facilitate the grant of options and the administration of the
Plan; (ii) waives any data privacy rights he or she may have with respect to such information; and
(iii) authorizes the Company and each Subsidiary to store and transmit such information in
electronic form.

     21. APPROVED RETIREMENT.

     “Approved Retirement” means, with respect to the interpretation of the Plan and this
Agreement, with the express consent of the Company at or before the time of such Approved
Retirement, which consent may be withheld for any or no reason, any voluntary termination of
employment by the Participant after having reached the age of fifty-five (55) years and after
having completed at least fifteen (15) years of continuous employment with the Company.

FORM SO-3-2010

8exv10w2

Exhibit 10.2

KING PHARMACEUTICALS, INC.

INCENTIVE PLAN

RESTRICTED STOCK CERTIFICATE

     This Certificate, when executed by a duly authorized officer of King Pharmaceuticals, Inc.
(the “Company”), evidences the grant to the Participant named below of Restricted Common Stock of
the Company.

	 	 	 	 	 
	1.

	 	Name of Participant:
	 	[Participant Name]
	 
	 	 	 	 
	2.

	 	Social Security Number of Participant:
	 	[Social Security Number]
	 
	 	 	 	 
	3.

	 	Date of Grant:
	 	[Grant Date]
	 
	 	 	 	 
	4.

	 	Type of Grant:
	 	[Grant Type]
	 
	 	 	 	 
	5.

	 	Number of Shares:
	 	[Number of Shares Granted]
	 
	 	 	 	 
	6.

	 	Vesting Schedule:
	 	The restrictions upon the
Restricted Stock shall
lapse upon the
3rd anniversary
of the date of grant.
	 
	 	 	 	 
	7.

	 	Purchase Price:
	 	$0.00 

This Restricted Stock is subject to and governed by the terms of this Restricted Stock Certificate,
the Restricted Stock Agreement attached hereto and incorporated by reference herein and the
Company’s Incentive Plan.

	 	 	 	 	 
	 	KING PHARMACEUTICALS, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	Brian A. Markison 	 
	 	 	Title:  	President and Chief Executive Officer 	 
	 

FORM RS-3-2010

 

RESTRICTED STOCK GRANT AGREEMENT

PURSUANT TO THE KING PHARMACEUTICALS, INC.

INCENTIVE PLAN

     This Restricted Stock Grant Agreement (the “Agreement”) is made as of the date set forth on
the Restricted Stock Certificate attached hereto (the “Grant Date”) by King Pharmaceuticals, Inc.
(the “Company”) and the individual identified on the Restricted Stock Certificate (the
“Participant”) to effect an award of restricted stock by the Company to the Participant on the
terms and conditions set forth below:

     1. AWARD OF RESTRICTED STOCK.

     As of the Grant Date, subject to the terms, conditions and restrictions set forth herein, the
Company grants and issues to the Participant the number of shares of the Company’s common stock
indicated on the Restricted Stock Certificate (the “Restricted Stock”).

     2. GOVERNING PLAN.

     The Restricted Stock shall be granted pursuant to and (except as specifically set forth
herein) subject in all respects to the applicable provisions of the King Pharmaceutical, Inc.
Incentive Plan (“Plan”), which are incorporated herein by reference. Terms not otherwise defined in
this Agreement have the meanings ascribed to them in the Plan.

     3. RESTRICTIONS ON THE RESTRICTED STOCK.

     (a) No Transfer. The shares of Restricted Stock (including any shares received
by the Participant with respect to shares of Restricted Stock as a result of stock
dividends, stock splits or any other form of recapitalization or a similar transaction
affecting the Company’s securities without receipt of consideration) may not be sold,
assigned, transferred, pledged, hypothecated or otherwise disposed of, alienated or
encumbered during the Restricted Period.

     (b) Vesting. The restrictions imposed under Section 3(a) will be removed from
the Restricted Stock at the end of the applicable Restricted Period. Removal of the
restrictions imposed under Section 3(a) from particular shares of Restricted Stock is
referred to as “vesting” of those shares and shares from which the restrictions have been
removed are referred to as “vested.”

     4. VOTING AND OTHER RIGHTS.

     During the period prior to vesting, except as otherwise provided herein, the Participant will
have all of the rights of a shareholder with respect to all of the Restricted Stock, including
without limitation the right to vote such Restricted Stock and the right to receive all dividends
or other distributions with respect to such Restricted Stock. In connection with the payment of
such

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dividends or other distributions, the Company will be entitled to deduct from any amounts
otherwise payable by the Company to Participant (including without limitation salary or other
compensation) any taxes or other amounts required by any governmental authority to be withheld and
paid over to such authority for Participant’s account.

     5. CERTIFICATION, ESCROW AND DELIVERY OF SHARES.

     (a) Certificates. Each certificate representing the Restricted Stock will be
endorsed with a legend substantially as set forth below, as well as such other legends as
the Company may deem appropriate to comply with applicable laws and regulations:

The securities evidenced by this certificate are subject to certain limitations on
transfer and other restrictions as set forth in that certain Restricted Stock Grant
Agreement, dated as of                     , 20___, between the Company and the
holder of such securities, pursuant to the King Pharmaceuticals, Inc. Incentive Plan
(copies of which are available for inspection at the offices of the Company).

     (b) Escrow. With respect to the Restricted Stock (including any shares
received by Participant with respect to shares of Restricted Stock that have not yet vested
as a result of stock dividends, stock splits or any other form of recapitalization or a
similar transaction affecting the Company’s securities without receipt of consideration),
the Secretary of the Company, or such other escrow holder as the Secretary may appoint, will
retain physical custody of the certificate representing such share until such share vests.

     (c) Delivery of Certificates. As soon as reasonably practicable after the
vesting of any Restricted Stock, the Company will release the certificate(s) representing
such vested Restricted Stock to Participant. If other still unvested shares of Restricted
Stock are also represented by the same stock certificate as vested shares, then such
certificate will be retired and new certificates representing the vested and unvested
portions of the Restricted Stock will be issued in place of the existing certificate. The
certificate representing the vested Restricted Stock will be delivered to Participant and
the certificate representing the still unvested shares of Restricted Stock will be retained
by the escrow holder.

     6. ADDITIONAL AGREEMENTS.

     (a) Tax Matters. The Restricted Stock is subject to appropriate income tax
withholding and other deductions required by applicable laws or regulations, and Participant
and his successors will be responsible for all income and other taxes payable as a result of
grant or vesting of the Restricted Stock or otherwise in connection with this Agreement.
The Company is not required to provide any gross-up or other tax assistance. Participant
understands that Participant may make an election pursuant to Section 83(b) of the Internal
Revenue Code (the “Code”) within thirty (30) days after the date Participant acquired the
Restricted Stock hereunder, or comparable provisions of any state tax law, to include in
Participant’s gross income the fair market value (as of the date

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of acquisition) of the Restricted Stock. Participant may make such an election only
if, prior to making any such election, Participant (a) notifies the Company of Participant’s
intention to make such election, by delivering to the Company a copy of a fully-executed
Section 83(b) election form such as the Company may from time to time prescribe, and (b)
pays to the Company an amount sufficient to satisfy any taxes or other amounts required by
any governmental authority to be withheld or paid over to such authority for Participant’s
account, or otherwise makes arrangements satisfactory to the Company for the payment of such
amounts through withholding or otherwise. Participant understands that if Participant does
not make a proper and timely Section 83(b) election, generally under Section 83 of the Code,
at the time the Restricted Period lapses with respect to any portion of the Restricted
Stock, Participant will recognize ordinary income and be taxed in an amount equal to the
fair market value (as of the date the forfeiture restrictions lapse) of the Restricted Stock
less the purchase price paid for the Restricted Stock. Participant acknowledges that it is
Participant’s sole responsibility, and not the Company’s, to file a timely election under
Section 83(b). Participant is relying solely on Participant’s advisors with respect to the
decision as to whether or not to file a Section 83(b) election.

     (b) Independent Advice; No Representations. Participant acknowledges that (i)
(s)he was free to use professional advisors of his choice in connection with this Agreement,
has received advice from her/his professional advisors in connection with this Agreement,
understands its meaning and import, and is entering into this Agreement freely and without
coercion or duress; and (ii) (s)he has not received and is not relying upon any advice,
representations or assurances made by or on behalf of the Company or any Company affiliate
or any employee of or counsel to the Company regarding any tax or other effects or
implications of the Restricted Stock or other matters contemplated by this Agreement.

     (c) Value of Restricted Stock. No representations or promises are made to
Participant regarding the value of the Restricted Stock or Company’s business prospects.
Participant acknowledges that information about investment in Company stock, including
financial information and related risks, is contained in Company’s SEC reports which have
been made available for Participant’s review at any time before Participant’s acceptance of
this Agreement. Further, Participant understands that the Company does not provide tax or
investment advice and acknowledges Company’s recommendation that Participant consult with
independent specialists regarding such matters. Sale or other transfer of the Company stock
may be limited by and subject to Company policies as well as applicable securities laws and
regulations.

     (d) Adjustment in Capitalization. In the event of an Adjustment Event that is
a merger, consolidation, reorganization, liquidation, dissolution or other similar
transaction, then the Award pursuant to Section 1 of this Agreement shall be deemed to
pertain to the securities and other property, including cash, to which a holder of the
number of shares equal to the Restricted Stock would have been entitled to receive in
connection with such Adjustment Event; provided, that any securities issued to Participant
in respect of unvested Granted Shares will be subject to the same restrictions

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and vesting provisions that were applicable to the Restricted Stock in exchange for
which the securities were issued.

     (e) Change of Control. Upon a Change of Control, vesting shall occur with
respect to the Restricted Stock in accordance with Article 11 of the Plan.

     (f) Termination of Employment. Upon a Termination of Employment, vesting or
forfeiture of the Restricted Stock shall be determined according to Section 8.7 of the Plan.

     (g) No Right to Continued Employment. This Agreement does not confer upon
Participant any right to continue as an employee of the Company or its subsidiary or to any
particular employment tenure, nor does it limit in any way the right of Company or its
subsidiary to terminate Participant’s services to the Company or its subsidiary at any time,
with or without cause.

     (h) Approved Retirement. “Approved Retirement” means, with respect to the
interpretation of the Plan and this Agreement, with the express consent of the Company at or
before the time of such Approved Retirement, which consent may be withheld for any or no
reason, any voluntary termination of employment by the Participant after having reached the
age of fifty-five (55) years and after having completed at least fifteen (15) years of
continuous employment with the Company.

     7. GENERAL.

     (a) Successors and Assigns. This Agreement is personal in its nature and
Participant may not assign or transfer his/her rights under this Agreement.

     (b) Notices. Any notices, demands or other communications required or desired
to be given by any party shall be in writing and shall be validly given to another party if
served either personally or if deposited in the United States mail, certified or registered,
postage prepaid, return receipt requested. If such notice, demand or other communication
shall be served personally, service shall be conclusively deemed made at the time of such
personal service. If such notice, demand or other communication is given by mail, such
notice shall be conclusively deemed given forty-eight (48) hours after the deposit thereof
in the United States mail addressed to the party to whom such notice, demand or other
communication is to be given as hereinafter set forth:

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	To the Company:

	 	King Pharmaceuticals, Inc.
	 

	 	400 Crossing Boulevard
	 

	 	Bridgewater, NJ 08807
	 

	 	Attention: Human Resources

     To Participant: At his/her address of record as maintained in the Company’s files.

Any party may change its address for the purpose of receiving notices, demands and other
communications by providing written notice to the other party in the manner described in this
paragraph.

     (c) Entire Agreement. Except as this Agreement may expressly provide
otherwise, this Agreement, the Restricted Stock Certificate and the Plan constitute the
entire agreement and understanding of the Company and Participant with respect to the
subject matter hereof and thereof, and supersede all prior written or verbal agreements and
understandings between Participant and the Company relating to such subject matter. Except
as required by applicable law, this Agreement may only be amended by written instrument
signed by Participant and an authorized officer of the Company.

     (d) Governing Law; Severability. This Agreement will be construed and
interpreted under the laws of the State of Tennessee applicable to agreements executed and
to be wholly performed within the State of Tennessee. If any provision of this Agreement as
applied to any party or to any circumstance is adjudged by a court of competent jurisdiction
to be void or unenforceable for any reason, the invalidity of that provision shall in no way
affect (to the maximum extent permissible by law) the application of such provision under
circumstances different from those adjudicated by the court, the application of any other
provision of this Agreement, or the enforceability or invalidity of this Agreement as a
whole. If any provision of this Agreement becomes or is deemed invalid, illegal or
unenforceable in any jurisdiction by reason of the scope, extent or duration of its
coverage, then such provision shall be deemed amended to the extent necessary to conform to
applicable law so as to be valid and enforceable or, if such provision cannot be so amended
without materially altering the intention of the parties, then such provision will be
stricken and the remainder of this Agreement shall continue in full force and effect.

     (e) Remedies. All rights and remedies provided pursuant to this Agreement or
by law shall be cumulative, and no such right or remedy shall be exclusive of any other. A
party may pursue any one or more rights or remedies hereunder or may seek damages or
specific performance in the event of another party’s breach hereunder or may pursue any
other remedy by law or equity, whether or not stated in this Agreement.

     (f) Interpretation. Headings herein are for convenience of reference only, do
not constitute a part of this Agreement, and will not affect the meaning or interpretation
of this Agreement. References herein to Sections are references to the referenced Section
hereof, unless otherwise specified.

FORM RS-3-2010

6

 

     (g) Waivers; Amendments. The waiver by either party of a breach of any
provision of this Agreement shall not operate or be construed as a waiver of any later
breach of that provision. Except as required by applicable law, this Agreement may be
modified only by written agreement signed by Participant and the Company.

FORM RS-3-2010

7

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