The Kings terminated Richards' contract over a "material breach" and the NHLPA filed a grievance. That would have sent it to arbitration, which might not have upheld the termination, so the Kings and Richards both hedged their bets and settled on 60% of what he was owed (he had 5 years/22m left). The Kings got a 10.5m cap hit over 17 years for the settlement cost ("termination fee") and a separate 5 year/1.3m "recapture penalty".
I think the Kings settled because there was a real chance they could lose in arbitration while Richards settled just to end the legal hassle, get his money risk free and play somewhere else. The criminal charges were everything in Richards case though, especially it being boo hiss evil drug charges, which gave them a chance to try to wiggle out of a bad contract by f***ing over a guy who was addicted to painkillers after numerous injuries.
An example: While in Philly, Richards played 79 games in 2008-09 and then had shoulder surgery on both his shoulders, one with a torn labrum, after the season was over. He suffered both injuries early in the season and "underwent cortisone treatments to manage the pain" (wink wink).
I'm getting side tracked a little but my point is while Kane has done a lot of dumb shit there hasn't been any criminal charges and you can't count on a "dumb shit out clause" in a guaranteed contract. The Kings managing to terminate-then-settle with Richards was an anomaly that managed to piss off just about everybody (players, NHLPA, other teams) but the Kings and NHL went to great pains to make it clear that it wasn't a precedent. There were rumors that Sharks floated the idea of a Richards-style settlement with Kane but without the threat of a contract termination there was no sale. Unless Kane wants to break away this contract will live on.
Flyers' Mike Richards Needs Surgery On Both Shoulders
Deep Blue Sea: Mike Richards case unlikely to be precedent for Evander Kane