via the LA Kings,

The Los Angeles Kings have reached an agreement with Mike Richards to resolve the grievance filed in relation to the termination of his NHL Standard Players Contract. The terms are agreeable to all parties. We will not be commenting further on the terms.

via TSN,

According to TSN Hockey Insider Bob McKenzie, the Kings will pay a cap recapture penalty for the next five years. He adds that the team will face an annual cap hit equal to the dollars being paid out annually to Richards, while the cap hit will last as long as the payment schedule.

The Kings terminated Richards' contract in June after he was arrested at the U.S.-Canadian border and later charged with illegal possession of a controlled substance, seemingly alleviating themselves of the $22 million and five years left on his deal at a $5.75 million cap hit.