THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

K-V Pharmaceutical Company (KVA)

6/26/2006 Proxy Information

David S. Hermelin is the son of Marc S. Hermelin.

Victor M. Hermelin, the Chairman of the Board of the Company (until August 4, 2006), has a license agreement with the Company pursuant to which he has licensed the use of technology subject to a patent application. Royalties paid to him under the terms of this agreement were $167,155 for fiscal year 2006. Also, in fiscal 2006, Victor M. Hermelin received a salary, consulting fees and other compensation of $129,590, $63,486 and $8,884, respectively.

Marc S. Hermelin, the Vice Chairman and Chief Executive Officer of the Company, is a partner in a partnership that leases certain real property to the Company. Lease payments made by the Company to the partnership for this property during fiscal year 2006 totaled $286,089. The Company believes that the terms and conditions of the transactions with the affiliated person described above were more favorable to the Company than those that would have been available to the Company in comparable transactions with unaffiliated persons.

David S. Hermelin, the son of Marc S. Hermelin and grandson of Victor M. Hermelin, is a director and is employed by the Company as Vice President, Corporate Strategy and Operations Analysis. For fiscal year 2006, David S. Hermelin received a salary, earned incentive and other compensation of $237,981, $75,000 and $4,083, respectively, from the Company.

Mitchell I. Kirschner, the brother-in-law of Marc S. Hermelin and son-in-law of Victor M. Hermelin, was formerly employed by the Company as Vice President, New Business Development from July 3, 1974 until January 20, 2006. For fiscal year 2006, Mitchell I. Kirschner received salary and other compensation of $230,113, and $48,020, respectively, from the Company.

Sarah R. Weltscheff is employed by the Company as Vice President, Administration and Corporate Communications. Ms. Weltscheff and Marc Hermelin are married under religious law. For fiscal 2006, Ms. Weltscheff received a salary, earned incentive and other compensation of $275,072, $106,500, and $7,710, respectively, from the Company. Also, Ms. Weltscheff exercised options in fiscal 2006 to acquire 44,974 shares of Class A Common Stock and 2,203 shares of Class B Common Stock. Using the March 31, 2006 closing price for Class A Common Stock of $24.12 and the March 31, 2006 closing price for Class B Common Stock of $24.10 as the fair value of the stock, Ms. Weltscheff's option exercise resulted in a realized value of $981,333 and $45,492, respectively.

7/27/2005 Proxy Information

Victor M. Hermelin is the father of Marc S. Hermelin.

Victor M. Hermelin, the Chairman of the Board of the Company, has a license agreement with the Company pursuant to which he has licensed the use of technology subject to a patent application. Royalties paid to him under the terms of this agreement were $203,820 for fiscal year 2005. Also, in fiscal 2005, Victor M. Hermelin received a salary, bonus, consulting fees and other compensation of $125,456, $60,000, $139,859 and $8,789, respectively.

Marc S. Hermelin, the Vice Chairman and Chief Executive Officer of the Company, is a partner in a partnership that leases certain real property to the Company. Lease payments made by the Company to the partnership for this property during fiscal year 2005 totaled $276,881. The Company believes that the terms and conditions of the transactions with the affiliated person described above were more favorable to the Company than those that would have been available to the Company in comparable transactions with unaffiliated persons.

David S. Hermelin, the son of Marc S. Hermelin and grandson of Victor M. Hermelin, is a director and is employed by the Company as Vice President, Corporate Strategy and Operations Analysis. For fiscal year 2005, David S. Hermelin received a salary, earned incentive and other compensation of $217,484, $50,625 and $5,199, respectively, from the Company. Also, in fiscal 2005, David S. Hermelin was granted options to acquire 50,000 shares of Class B Common Stock that had a grant date present value of $206,642.

Mitchell I. Kirschner, the brother-in-law of Marc S. Hermelin and son-in-law of Victor M. Hermelin, is employed by the Company as Vice President, New Business Development. For fiscal year 2005, Mitchell I. Kirschner received salary, earned incentive and other compensation of $262,909, $40,000 and $5,560, respectively, from the Company.

Sarah R. Weltscheff is employed by the Company as Vice President, Administration and Corporate Communications. Ms. Weltscheff and Marc Hermelin are married under religious law. For fiscal 2005, Ms. Weltscheff received a salary, earned incentive and other compensation of $255,984, $77,000 and $6,912, respectively, from the Company. Also, in fiscal 2005, Ms. Weltscheff was granted options to acquire 5,000 shares of Class B Common Stock that had a grant date present value of $18,786. In addition, Ms. Weltscheff exercised options in fiscal 2005 to acquire 5,922 shares of Class A Common Stock. Using the March 31, 2005 closing price for Class A Common Stock of $23.20 as the fair value of the stock, Ms. Weltscheff’s option exercise resulted in a realized value of $125,228.