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Affiliate Agreement [Form]

 

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Title:

Affiliate Agreement [Form]

Entities:

Jones Pharma Inc.; King Pharmaceuticals Inc.

Date:

2000

Size:

Preview shows 4KB of 12KB total

Price:

$31

ID:

#305232

 

 

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FORM OF JONES AFFILIATE AGREEMENT

July 13, 2000


Jones Pharma Incorporated
1945 Craig Road
St. Louis, Missouri 63146

King Pharmaceuticals, Inc.
501 Fifth Street
Bristol, Tennessee 37620


RE: AFFILIATE AGREEMENT

Ladies and Gentlemen:

The undersigned is a stockholder of Jones Pharma Incorporated, a
Delaware corporation ("Jones"), and will become a stockholder of King
Pharmaceuticals, Inc., a Tennessee corporation ("King"), pursuant to the
transactions described in the Agreement and Plan of Merger, dated as of July 13,
2000 (the "Merger Agreement"), by and among King, Spirit Acquisition Corp., a
Delaware corporation and a wholly-owned subsidiary of King ("Merger Sub") and
Jones. Under the terms of the Merger Agreement, the Merger Sub will be merged
with and into Jones and the shares of common stock of Jones, par value $.04 per
share (the "Jones Common Stock"), will be converted into and exchanged for
shares of common stock of King, no par value per share (the "King Common
Stock"). This Affiliate Agreement represents an agreement by and among the
undersigned, Jones and King regarding certain rights and obligations of the
undersigned in connection with the (a) shares of Jones Common Stock beneficially
owned by the undersigned and (b) shares of King Common Stock into which such
shares of Jones Common Stock are to be converted as a result of the merger (the
"Merger") of the Merger Sub with and into Jones. In consideration of the Merger
and the mutual covenants contained herein, the undersigned, Jones and King
hereby agree as follows:

1. Affiliate Status. The undersigned understands and agrees that as to
Jones he or she may be deemed to be an "affiliate" as that term is used in SEC
Accounting Series Release ("ASR") Nos. 130 and 135 and Rule 145 of the rules and
regulations of the Securities and Exchange Commission ("SEC") under the
Securities Act of 1933, as amended (the "1933 Act"), and the undersigned
anticipates that the undersigned will be deemed to be such an "affiliate" at the
time of the Merger and, as such, the undersigned agrees that all shares of Jones
Common Stock beneficially owned by the undersigned, and all shares of King
Common Stock into which such shares are converted in the Merger, shall be
subject to the terms and conditions of this Affiliate Agreement.

2. Restriction on Disposition. The undersigned agrees that during the
Pooling Period (as defined below) he or she will not sell, transfer, or
otherwise dispose of his or her interests in, or reduce his or her risk relative
to, any of the (a) shares of Jones Common Stock over which the undersigned has
or shares voting or dispositive power with respect thereto or (b) shares of King
Common Stock into which such shares of Jones Common Stock are converted upon
consummation of the Merger or upon the exercise of any King options. For
purposes of this Affiliate Agreement, "Pooling Period" shall mean the period
commencing thirty-five (35) days prior to the Effective Time (as defined in the
Merger Agreement) and ending on the date which is two (2) business days after
publication by King of its results of post-Merger operations for the period
which includes at least thirty (30) days of post-Merger combined operations of
King and Jones whether by issuance of an earnings report on Form 10-K, 10-Q, 8-K
or other public issuance (such as a press release) that includes such
information. The undersigned understands that reducing his or her risk relative
to such shares of Jones Common Stock or King Common Stock includes, but is not
limited to, using such shares to secure a non-recourse loan, purchasing a put

 

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