Document:

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                                                                   EXHIBIT 10.12

LAND CONTRACT
47-040-023 (10/21/03)                       Philip R. Seaver Title Company, Inc.
--------------------------------------------------------------------------------

THIS CONTRACT is effective as of this 15th day of July, 2004 (the "Effective
Date"), between Meadowbrook Insurance Group, Inc., a Michigan corporation,
hereinafter referred to as "SELLER", whose address is 26600 Telegraph Road,
Southfield, Michigan 48034-2438, and MB Center II LLC, a Michigan limited
liability company, hereinafter referred to as "PURCHASER", whose address is 101
West Big Beaver Road, Suite 200, Troy, Michigan 48084-5255.

         WITNESSETH:

1. SELLER AGREES AS FOLLOWS:

         (a) To sell and convey to Purchaser land in the City of Southfield,
Oakland County, Michigan, the Property ("Property") described as:

                            See Attached Exhibit "A"

             Tax Parcel No.:                           Common Address:

             Tax Parcel ID# Part of 24-18-451-003      Vacant Property

together with all tenements, hereditaments, improvements and appurtenances now
on the Property, and subject to all applicable building and use restrictions,
easements, and other matters of record, if any, affecting the Property as of the
date hereof, but free of liens and mortgages other than liens created by
Purchaser.

         (b) That the consideration for the sale of the above described Property
to Purchaser is Three Million Three Hundred Fifty-Five Thousand Three Hundred
Ten and 00/100 ($3,355,310.00) Dollars, of which the sum of Six Hundred
Thirty-Three Thousand Two Hundred and 00/100 ($633,200.00) Dollars, has
heretofore been paid to Seller, the receipt of which is hereby acknowledged, and
the balance of Two Million Seven Hundred Twenty-Two Thousand One Hundred Ten and
00/100 ($2,722,110.00) Dollars ("Principal"), is to be paid to Seller, with
interest on any part thereof at any time unpaid at the rate of seven percent
(7%) per annum, simple interest. Purchaser shall make monthly payments of
interest only to the extent accrued on the first day of each calendar month.
Purchaser shall pay all accrued interest as of the Effective Date, in its first
monthly payment which is due and payable as of September 1, 2004 or the first
day of the month following the date the escrow is released, whichever is later.
This balance of purchase money and interest shall be paid in a balloon payment
prior to, but in no event later than thirty-six (36) months after the effective
date of this Land Contract.

         (c) Upon receiving payment in full of all sums owing herein, less the
amount then due on any existing mortgage or mortgages, and the surrender of the
duplicate of this contract, to execute and deliver to Purchaser or Purchaser's
assigns, a good and sufficient Warranty Deed, subject to aforesaid restrictions,
easements, and matters of record as of the date hereof, and free from all other
encumbrances, except such as may be herein set forth, and except such
encumbrances as shall have accrued or attached since the date hereof through the
acts or omissions of persons other than Seller cr its assigns.

         (d) To deliver to Purchaser as evidence of title, a Policy of Title
Insurance insuring Purchaser, the effective date of the policy to be the date of
this contract, and issued by PHILIP R. SEAVER TITLE COMPANY in the amount of the
purchase price without standard exceptions.

2. PURCHASER AGREES AS FOLLOWS:

         (a) To purchase said land and pay Seller the sum aforesaid, with the
interest thereon as above provided.

         (b) To use, maintain and occupy said Property in accordance with any
and all restrictions thereon.

         (c) To keep the Property in accordance with all police, sanitary and
other regulations imposed by any governmental authority.

         (d) To pay all taxes and assessments hereafter levied on said Property
before any penalty for non-payment attaches thereto. If separate tax bills are
not available, Seller will provide to Purchaser a notice of taxes due, in a
timely manner after the taxing authority has issued the bill to Seller. Seller
shall reasonably calculate the taxes due from Purchaser based on the square
footage of the Property and the cost of any improvements if separate tax bills
are not available. During the term of the Land Contract, Purchaser shall procure
and maintain public liability insurance with commercially reasonable coverage
amounts. Said insurance policy shall name Seller as an additional insured and
shall have policy limits of not less than Three Million Dollars ($3,000,000) per
occurrence. Proof of such insurance shall be delivered to Seller annually and
upon request. The insurance certificate shall state that it shall not be
terminated without at least thirty (30) days' prior notice to Seller.

                                   Page 1 of 5

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         (e) That it has examined a Title Insurance Commitment dated effective
May 24, 2004, covering the above described Property, and is satisfied with the
marketability of the title shown thereby.

         (f) To keep and maintain the Property in as good condition as it is at
the date hereof and not to commit waste, remove or demolish any improvements
thereon, or otherwise diminish the value of Seller's security, without the
written consent of Seller. Construction of improvements to the Property will not
constitute waste.

3. SELLER AND PURCHASER MUTUALLY AGREE AS FOLLOWS:

         (a) That Seller may, at any time during the continuance of this
contract encumber said land by mortgage or mortgages, provided, at no time shall
the sum secured by the mortgage exceed eighty percent (80%) of the unpaid
balance of this land contract.

         (b) That if Sellers interest in the land is now or hereafter encumbered
by mortgage, Seller shall meet the payments of principal and interest thereon as
they mature and produce evidence thereof to Purchaser on demand, and in default
of Seller, said Purchaser may pay the same. Such payments by Purchaser shall be
credited on the sums first maturing hereon, with interest at the rate provided
in paragraph 1(b) on payments so made. If proceedings are commenced to recover
possession or to enforce the payment of such contract or mortgage because of
Seller's default, Purchaser may, at any time thereafter while such proceedings
are pending, encumber said land by mortgage, securing such sum as can be
obtained, upon such terms as may be required, and with the proceeds, pay and
discharge such mortgage, or purchase money line. Any mortgage so given shall be
a first lien upon the land superior to the rights of Seller therein and
thereafter Purchaser shall pay the principal and interest on such mortgage so
given as they mature, which payments shall be credited on the sums matured or
first maturing hereon. Seller shall be responsible for payment of any prepayment
premium due under Seller's mortgage or the note it secures.

         (c) That if default is made by Purchaser in the payment of any taxes,
assessments or insurance premiums, or in the delivery of any policy as
hereinbefore provided, and if Purchaser fails to cure the same within fifteen
(15) days after Seller serves notice reasonably describing Purchaser's default,
Seller may pay such taxes or premiums or procure such insurance and pay the
premium or premiums thereon, and any sum or sums so paid shall be a further lien
on the land and promises, payable by Purchaser to Seller forthwith with interest
at the rate as set forth in paragraph l(b) hereof.

         (d) No assignment or conveyance by Purchaser shall create any liability
whatsoever against Seller until a duplicate thereof, duly witnessed and
acknowledged, together with the residence address of such assignee, shall be
delivered to Seller. Purchaser's liability hereunder shall not be released or
affected in any way by delivery of such assignment, or by Seller's endorsement
of receipt and/or acceptance thereon.

         (e) Purchaser shall have the right to possession of the Property.
During the term of the Land Contract, Purchaser and its agents shall have
possession of the property and shall be permitted to conduct construction
activities as necessary for Purchasers development of the property in conformity
with all recorded restrictions, including, but not limited to, those
restrictions reflected in the Master Deed recorded in Liber 18714, Pages
477-520, inclusive, provided, however, Purchaser assumes all liability for
Purchaser's acts and omissions and the acts and omissions of any of its agents
who enter the Property and shall indemnify, defend and hold Seller harmless from
any loss, cost, damage or expense incurred by Seller as a result of such acts.
Purchaser shall maintain appropriate builders' risk insurance and workman's
compensation insurance and shall exhibit such to Seller upon request. In the
event Purchaser defaults under the Land Contract and the property is forfeited
back to Seller, Purchaser agrees that title to all improvements shall be vested
in Seller.

         (f) If Purchaser shall fail to perform this contract or any part
thereof, Seller immediately after such default shall have the right to declare
the same forfeited and void by written notice in the form described below, and
retain whatever may have been paid hereon, and all improvements that may have
been made upon the Property, together with additions and accretions thereto, and
consider and treat Purchaser as its tenant holding over without permission and
may take immediate possession of the Property, and Purchaser and each and every
other occupant remove and put out. Every notice of forfeiture relied upon by
Seller to terminate rights hereunder shall specify all unpaid monies and other
breaches of this contract and shall declare forfeiture of this contract to be
effective fifteen (15) days after service, unless such money is paid and any
other breaches of this contract are cured within that time. The parties have
signed and recorded a memorandum of this Agreement, and Purchaser shall be
deemed to be in actual and constructive possession of the Property for all
purposes including the Michigan Summary Proceedings Act.

         (g) If default is made by Purchaser and such default continues for a
period of fifteen (15) days or more after Seller notifies Purchaser in writing
of the nature of the default and states Seller's intention to foreclose, and
Seller desires to foreclose this contract in equity, then Seller shall have, at
its option, the right to declare the entire unpaid balance hereunder to be due
and payable forthwith, notwithstanding anything herein contained to the
contrary.

         (h) Time shall be deemed to be of the essence of this contract.

         (i) The individual parties hereto represent themselves to be of full
age, and the corporate parties hereto represent themselves to be valid existing
corporations with their charters in full force and effect.

         (j) Replaced by paragraph (t).

         (k) From and after the thirty-sixth (36th) month due date maturity of
this Land Contract, the principal and interest accrued as of the date of such
maturity shall bear interest at eleven percent (11%) simple interest per annum.
KH060795

                                  Page 2 of 5

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         (l) If any action is brought by either party to enforce its rights
hereunder, the losing party shall pay the prevailing party's attorney fees and
court costs.

         (m) Purchaser and Seller's interest in this Land Contract may be
recorded in the form of a Memorandum of Land Contract.

         (n) No breach of any express or implied warranty shall entitle
Purchaser to any delay or set off with regard to payments due under the Land
Contract unless and until a judgment based upon such breach has been rendered by
a court of competent jurisdiction and has become unappealable.

         (o) Purchaser is acquiring the Property "As-Is" with all faults and
defects, and Purchaser acknowledges and agrees that Seller has not made, does
not make and specifically disclaims any representations, warranties, promises,
covenants, agreements or guarantees of any kind or character whatsoever whether
express or implied, oral or written, past, present or future, as to, concerning
or with respect to (A) the nature, quality or condition of the Property,
including, without limitation, the water, soil and geology, or the presence or
absence of any pollutant, hazardous waste, gas or substance or solid waste on or
about the Property, (B) the suitability of the Property for any and all
activities and uses which Purchaser may intend to conduct thereon, (C) the
compliance of or by the Property or its operation with any laws, rules,
ordinances or regulations of any governmental authority or body having
jurisdiction, including, without limitation, all applicable zoning laws, (D) the
habitability, merchantability or fitness for a particular purpose of the
Property, or (E) any other matter related to or concerning the Property, except
as expressly set forth in this Agreement; and Purchaser shall not seek recourse
against Seller on account of any loss, cost or expense suffered or incurred by
Purchaser with regard to any of the matters described in Clauses (A) through (E)
above. Purchaser acknowledges that Purchaser, having been given the opportunity
to inspect the Property, is relying solely on its own investigation of the
Property and not on any information provided or to be provided by or on behalf
of Seller. Purchaser further acknowledges that no independent investigation or
verification has been or will be made by Seller with respect to any information
supplied by or on behalf of Seller concerning the Property, and Seller makes no
representation as to the accuracy or completeness of such information, it being
intended by the parties that Purchaser shall verify the accuracy and
completeness of such information itself. Purchaser acknowledges that the
disclaimers, agreements and other statements set forth in this paragraph are an
integral portion of this Agreement and that Seller would not agree to sell the
Property to Purchaser for the purchase price without the disclaimers, agreements
and other statements set forth in this paragraph.

         (p) If required by any governmental authorities as a condition of
Purchaser's development of the Property as contemplated in the reciprocal
easement agreement signed simultaneously with this land contract or as shown in
the site plan approved by the parties prior to the date hereof, the parties will
join in the granting of easements to such governmental authorities for access
and public utilities.

         (q) Purchaser shall be entitled to receive all interest which has
accrued on its deposit of Fifty Thousand and 00/100 ($50,000.00) Dollars,
provided that such deposit was delivered into an interest bearing escrow
account.

         (r) Purchaser, in its first interest payment to Seller due and payable
September 1, 2004, shall include all interest accrued on the Principal beginning
on the Effective Date.

         (s) This Land Contract may be executed in one or more counterparts,
each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument.

         (t) Any notices or consents required or permitted to be given under the
terms of this Agreement shall be deemed delivered when actually received if
personally delivered; upon actual receipt at the addressee's fax machine (with
confirmation of successful transmission) if telecopied; or one (1) business day
after delivery of a copy to a nationally recognized overnight delivery service
which provides a receipt of service (other than an overnight delivery service
offered by the United States Postal Service), addressed to the respective
parties as follows:

           If to Seller:
                   Meadowbrook Insurance Group, Inc.
                   26600 Telegraph Road
                   Southfield, Michigan 48034-2438
                   Attn: General Counsel
                   Fax: (246) 358-1614

                   with a copy to:

                   Edward F. Kickham, Esq.
                   26862 Woodward Avenue, Suite 100
                   Royal Oak, Michigan 48067-0958
                   Fax: (248) 414-9906

           If to Purchaser:

                   Kirco Acquisition, LLC
                   Columbia Center-Suite 200
                   101 West Big Beaver Road
                   Troy, Michigan 48084-5255
                   Attn: Clifford D. Aiken
                         A. Mathew Kiriluk, II
                   Fax: (248) 680-7181

                                  Page 3 of 5

<PAGE>

                   with a copy to:

                   Butzel Long
                   100 Bloomfield Hills Parkway, Suite 200
                   Bloomfield Hills, Michigan 48034
                   Attn: D. Stewart Green
                   Fax: (248) 258-1439

or to such other party or address as shall be specified by like notice.

         Nouns and pronouns will be deemed to refer to the masculine, feminine,
neuter, singular and plural, as the identity of the person or persons, firm or
corporation may in the context require. The covenants herein shall bind the
heirs, devisees, legatees, assigns, and successors of the respective parties.

         IN WITNESS WHEREOF, the parties hereto have executed this contract in
duplicate the day and year first above written.

                           SELLER:

                           MEADOWBROOK INSURANCE GROUP, INC.,
                           a Michigan corporation

                           /s/ Robert S. Cubbin
                           --------------------------------------------
                           By: Robert S. Cubbin
                               Its: President & CEO

                           PURCHASER:

                           MB CENTER II, LLC, a Michigan limited liability
                           company

                           By: Kirco Development LLC, a Michigan limited
                           liability company
                           Its: Manager

                                ---------------------------------------
                                By: A. Mathew Kiriluk, II
                                       Its: President

State of Michigan            )
                             ) ss
County of Oakland            )
          -------------------

         The foregoing instrument was acknowledged before me this 23rd day of
July, 2004, by Robert S. Cubbin, the President & CEO of Meadowbrook Insurance
Group, Inc., a Michigan corporation, on behalf of said corporation.

                                            Sandra L. Ferrari
                                            ------------------------------------
                                                                 , Notary Public
                                            ---------------------
                                                                County, Michigan
                                            --------------------
                                            My commission expires
                                                                 ---------------
                                            Acting in the County of Oakland    .
                                                                    ------------

State of Michigan            )                     SANDRA L. FERRARI
                             ) ss              NOTARY PUBLIC OAKLAND CO., MI
County of                    )               MY COMMISSION EXPIRES MAY 2, 2006
          -------------------

         The foregoing instrument was acknowledged before me this    th day of
July, 2004, by A. Mathew Kiriluk, II, the President of Kirco Development LLC, a
Michigan limited liability company, the Manager of MB Center II, LLC, a Michigan
limited liability company, on behalf of said limited liability company.

                                            ------------------------------------
                                                                 , Notary Public
                                            ---------------------
                                                                County, Michigan
                                            --------------------
                                            My commission expires
                                                                 ---------------
                                            Acting in the County of            .
                                                                    ------------

DRAFTED BY:

Edward F. Kickham
KICKHAM HANLEY P.C.
26862 Woodward Avenue, Suite 100
Royal Oak, Michigan 48067-0958
(248) 414-9900
(248) 414-9906 (fax)

                                   Page 4 of 5

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                   with a copy to:

                   Butzel Long
                   100 Bloomfield Hills Parkway, Suite 200
                   Bloomfield Hills, Michigan 48034
                   Attn: D. Stewart Green
                   Fax: (248) 258-1439

or to such other party or address as shall be specified by like notice.

         Nouns and pronouns will be deemed to refer to the masculine, feminine,
neuter, singular and plural, as the identity of the person or persons, firm or
corporation may in the context require. The covenants herein shall bind the
heirs, devisees, legatees, assigns, and successors of the respective parties.

         IN WITNESS WHEREOF, the parties hereto have executed this contract in
duplicate the day and year first above written.

                           SELLER:

                           MEADOWBROOK INSURANCE GROUP, INC.,
                           a Michigan corporation

                           --------------------------------------------
                           By: Robert S. Cubbin
                               Its: President & CEO

                           PURCHASER:

                           MB CENTER II, LLC, a Michigan limited liability
                           company

                           By: Kirco Development LLC, a Michigan limited
                           liability company
                           Its: Manager

                                /s/ A. Mathew Kiriluk, II
                                ---------------------------------------
                                By: A. Mathew Kiriluk, II
                                       Its: President

State of Michigan            )
                             ) ss
County of                    )
          -------------------

         The foregoing instrument was acknowledged before me this    th day of
July, 2004, by Robert S. Cubbin, the President & CEO of Meadowbrook Insurance
Group, Inc., a Michigan corporation, on behalf of said corporation.

                                            ------------------------------------
                                                                 , Notary Public
                                            ---------------------
                                                                County, Michigan
                                            --------------------
                                            My commission expires
                                                                 ---------------
                                            Acting in the County of
                                                                    ------------

State of Michigan            )
                             ) ss
County of Oakland            )
          -------------------

         The foregoing instrument was acknowledged before me this 23th day of
July, 2004, by A. Mathew Kiriluk, II, the President of Kirco Development LLC, a
Michigan limited liability company, the Manager of MB Center II, LLC, a Michigan
limited liability company, on behalf of said limited liability company.

                                            Vicky Bednarczyk
                                            ------------------------------------
                                                                 , Notary Public
                                            ---------------------
                                                                County, Michigan
                                            --------------------
                                            My commission expires
                                                                 ---------------
                                            Acting in the County of            .
                                                                    ------------

                                                      VICKY BEDNARCZYK
                                                  NOTARY PUBLIC WAYNE CO., MI
                                             MY COMMISSION EXPIRES JUL 16, 2007
                                                 ACTING IN OAKLAND COUNTY, MI

DRAFTED BY:

Edward F. Kickham
KICKHAM HANLEY P.C.
26862 Woodward Avenue, Suite 100
Royal Oak, Michigan 48067-0958
(248) 414-9900
(248) 414-9906 (fax)

                                   Page 4 of 5

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                                   EXHIBIT "A"
                               LEGAL DESCRIPTION

Unit 14 of the American Commerce Centre, according to Master Deed recorded in
Liber 18714, Pages 477 through 520, inclusive, Oakland County Records, as
amended by First Amendment to Master Deed recorded in Liber 19915, Page 599,
Oakland County Records, Second Amendment to Master Deed recorded in Liber 20091,
Page 811, Oakland County Records, Third Amendment to Master Deed recorded in
Liber 20131, Page 335, Oakland County Records, Fourth Amendment to Master Deed
recorded in Liber 20998, Page 689, Oakland County Records, Fifth Amendment to
Master Deed recorded in Liber 22509, Page 798, Oakland County Records, and Sixth
Amendment to Master Deed to be recorded, Oakland County Records, and designated
as Oakland County Condominium Subdivision Plan No. 1121, together with rights in
common elements and limited common elements as set forth in the above described
Master Deed (and Amendment thereto) and as described in Act 59 of the Public
Acts of 1978, as amended.

City of Southfield, County of Oakland, Michigan

Tax Identification Number: Part of 24-18-451-003

                                   Page 5 of 5Ex-10.26

 

EXHIBIT 10.26

EXECUTIVE EMPLOYMENT AGREEMENT

     This Executive Employment Agreement (the “Agreement”), is dated as of June
29, 2004, by and between Mylan Laboratories Inc. (“Mylan” or “Company”) and
Margaret A. McKenna (“Executive”).

RECITALS

     WHEREAS, the Company wishes to employ Executive as Chief Business
Development Officer; and

     WHEREAS, Executive desires to assist the Company in said capacity;

     In consideration of the promises and mutual obligations of the parties
contained herein, and for other valuable considerations, the receipt and
sufficiency of which are hereby acknowledged, Mylan and Executive agree as
follows:

     1. Employment of Executive. Mylan agrees to employ Executive as Chief
Business Development Officer, and Executive accepts employment by Mylan during
the term of this Agreement for the consideration and on the terms and
conditions provided herein. Executive will report to the President of Mylan or
as otherwise designated by Mylan’s Chief Executive Officer.

     2. Effective Date: Term of Employment. This Agreement shall commence
and be effective for all purposes as of the date hereof and shall remain in
effect through July 1, 2007, unless earlier terminated, or extended or renewed,
as provided in Section 9 of this Agreement.

     3. Best Efforts. During the Term of this agreement, Executive shall
devote her full working time and attention to the business and affairs of Mylan
and the performance of her duties hereunder, serve Mylan faithfully and to the
best of her ability, and use her best efforts to promote Mylan’s interests.
During the term of this Agreement, Executive agrees to promptly and fully
disclose to Mylan, and not to divert to Executive’s own use or benefit or the
use or benefit of others, any business opportunities involving any existing or
prospective line of business, supplier, product or activity of Mylan or any
business opportunities which otherwise should rightfully be afforded to Mylan.

     4. Executive’s Compensation.

     (a) Base Salary. As Executive’s base compensation for all services to be
performed, Mylan shall pay Executive an annual salary of three hundred
twenty-five thousand dollars ($325,000) (the “Base Salary”), payable in
accordance with Mylan’s normal payroll practices for its executive officers.
This Base Salary may be increased from time to time at the discretion of the
Board of Directors, any committee that may be authorized by the Board or any
officer having authority over executive compensation.

 

 

     (b) Discretionary Bonus. Executive shall be eligible to receive an
annual discretionary bonus targeted at one hundred percent (100%) of
Executive’s Base Salary. Executive’s eligibility for a bonus and the amount of
the bonus, if any, shall be determined by the Board of Directors in its sole
discretion, or by any committee or officer having authority over executive
compensation.

     (c) Non-Qualified Stock Options. Subject to approval of the Compensation
Committee, Executive shall receive non-qualified stock options to purchase up
to two hundred thousand (200,000) shares of Mylan common stock under the 2003
Long-Term Incentive Plan (the “Plan”) in accordance with the following vesting
schedule, provided that Executive remains employed by Mylan on the following
vesting dates: on June 29, 2005, Executive shall vest in the first 50,000
shares; on June 29, 2006, Executive shall vest in an additional 50,000 shares;
on June 29, 2007, Executive shall vest in an additional 50,000 shares; and on
June 29, 2008, Executive shall vest in the remaining 50,000 shares. These
options will be subject to all terms of the Plan and the applicable stock
option agreement. Notwithstanding any term or provision to the contrary set
forth elsewhere herein, Executive shall be entitled to one hundred percent
(100%) vesting of the above-referenced options in the event Executive resigns
for Good Reason or is Terminated Without Cause, or the Agreement is not
extended or renewed, as provided in Section 9 herein.

     (d) Fringe Benefits. Executive shall receive fringe benefits of
employment, such as health insurance coverage, profit-sharing, short-term
disability benefits, 20 days vacation, expense reimbursement, automobile usage
and participation in a 401(k) plan, as are customarily provided to other senior
executive employees of Mylan in accordance with the plan documents or policies
that govern such benefits. Mylan reserves the right to unilaterally modify or
terminate benefits provided under any plan, and the Executive is entitled only
to such benefits as are available under the then-effective plan.

     5. Confidentiality. Executive recognizes and acknowledges that the
business interests of Mylan and its subsidiaries, parents and affiliates
(collectively the “Mylan Companies”) require a confidential relationship
between the Company and Executive and the fullest protection and confidential
treatment of the financial data, customer information, supplier information,
market information, marketing and/or promotional techniques and methods,
pricing information, purchase information, sales policies, employee lists,
policy and procedure information, records, advertising information, computer
records, trade secrets, know how, plans and programs, sources of supply, and
other knowledge of the business of the Mylan Companies (all of which are
hereinafter jointly termed “Confidential Information”) which have or may in
whole or in part be conceived, learned or obtained by Executive in the course
of Executive’s employment with the Mylan Companies. Accordingly, Executive
agrees to keep secret and treat as confidential all Confidential Information
whether or not copyrightable or patentable, and agrees not to use or aid others
in learning of or using any Confidential Information except in the ordinary
course of business and in furtherance of the Mylan Companies’ interests. During
the term of this Agreement and at all times thereafter:

2

 

     (a) Executive will not, directly or indirectly, disclose any Confidential
Information to anyone outside the Mylan Companies, without the approval of the
individual to whom Executive reports;

     (b) Executive will not make copies of or otherwise disclose the contents
of documents containing or constituting Confidential Information;

     (c) As to documents which are delivered to Executive or which are made
available to her as a necessary part of the working relationships and duties of
Executive within the business of the Mylan Companies, Executive will treat such
documents confidentially and will treat such documents as proprietary and
confidential, not to be reproduced, disclosed or used without the approval of
the individual to whom Executive reports;

     (d) Executive will not advise others that the information and/or know how
included in Confidential Information is known to or used by the Mylan
Companies; and

     (e) Executive will not in any manner disclose or use Confidential
Information for Executive’s own account and will not aid, assist or abet others
in the use of Confidential Information for their account or benefit, or for the
account or benefit of any person or entity other than the Mylan Companies.

The obligations set forth in this paragraph are in addition to any other
agreements the Executive may have with any of the Mylan Companies and any and
all rights the Mylan Companies may have under state or federal statutes or
common law.

     6. Non-Competition and Non-Solicitation. Executive agrees that during
the term of this Agreement and for a period ending one (1) year after
termination of Executive’s employment for any reason:

     (a) Executive shall not, directly or indirectly, whether for herself or
for any other person, company, corporation or other entity be or become
associated in any way (including but not limited to the association set forth
in i-vii of this subsection) with any business or organization which is
directly or indirectly engaged in the research, development, manufacture,
production, marketing, promotion or sale of any product the same as or similar
to those of the Mylan Companies, or which competes or intends to compete in any
line of business with the Mylan Companies. Notwithstanding the foregoing,
Executive may during the period in which this paragraph is in effect own stock
or other interests in corporations or other entities that engage in businesses
the same or substantially similar to those engaged in by the Mylan Companies
provided that Executive does not, directly or indirectly (including without
limitation as the result of ownership or control of another corporation or
other entity), individually or as part of a group (as that term is defined in
Section 13 (d) of the Securities Exchange Act of 1934, as amended, and the
rules and regulations promulgated thereunder) (i) control or have the ability
to control the corporation or other entity, (ii) provide to the corporation or
entity, whether as an Executive, consultant or otherwise, advice or
consultation, (iii) provide to

3

 

the corporation or entity any confidential or proprietary information
regarding the Mylan Companies or its businesses or regarding the conduct of
businesses similar to those of the Mylan Companies, (iv) hold or have the right
by contract or arrangement or understanding with other parties to hold a
position on the board of directors or other governing body of the corporation
or entity or have the right by contract or arrangement or understanding with
other parties to elect one or more persons to any such position, (v) hold a
position as an officer of the corporation or entity, (vi) have the purpose to
change or influence the control of the corporation or entity (other than solely
by the voting of her shares or ownership interest) or (vii) have a business or
other relationship, by contract or otherwise, with the corporation or entity
other than as a passive investor in it; provided, however, that Executive may
vote her shares or ownership interest in such manner as she chooses provided
that such action does not otherwise violate the prohibitions set forth in this
sentence.

     (b) Executive will not, either directly or indirectly, either for herself
or for any other person, partnership, firm, company, corporation or other
entity, contact, solicit, divert, or take away any of the customers or
suppliers of the Mylan Companies.

     (c) Executive will not solicit, entice or otherwise induce any employee
of the Mylan Companies to leave the employ of the Mylan Companies for any
reason whatsoever; nor will Executive directly or indirectly aid, assist or
abet any other person or entity in soliciting or hiring any employee of the
Mylan Companies, nor will Executive otherwise interfere with any contractual or
other business relationships between the Mylan Companies and its employees.

     7. Severability. Should a court of competent jurisdiction determine that
any section or sub-section of this Agreement is unenforceable because one or
all of them are vague or overly broad, the parties agree that this Agreement
may and shall be enforced to the maximum extent permitted by law. It is the
intent of the parties that each section and sub-section of this Agreement be a
separate and distinct promise and that unenforceability of any one subsection
shall have no effect on the enforceability of another.

     8. Injunctive Relief. The parties agree that in the event of Executive’s
violation of sections 5 and/or 6 of this Agreement or any subsection
thereunder, that the damage to Mylan will be irreparable and that money damages
will be difficult or impossible to ascertain Accordingly, in addition to
whatever other remedies Mylan may have at law or in equity, Executive
recognizes and agrees that Mylan shall be entitled to a temporary restraining
order and a temporary and permanent injunction enjoining and prohibiting any
acts not permissible pursuant to this Agreement.

     9. Termination of Employment.

     (a) Resignation. (i) Executive may resign from employment at any time
upon 90 days written notice to the Chief Executive Officer. During the 90 days
notice period Executive will continue to perform duties and abide by all other
terms and conditions of

4

 

this Agreement. Additionally, Executive will use her best efforts to
effect a smooth and effective transition to whomever will replace Executive.
Mylan reserves the right to accelerate the effective date of Executive’s
resignation, provided that Executive shall receive Executive’s salary and
benefits through the ninety (90) day period. (ii) If Executive resigns without
“Good Reason” (as defined below), Mylan shall have no liability to Executive
under this Agreement other than that the Company shall pay Executive’s wages
and benefits through the effective date of Executive’s resignation. Executive,
however, will continue to be bound by all provisions of this Agreement that
survive termination of employment. For purposes of this Agreement “Good Reason”
shall mean a reduction of Executive’s Base Salary below the Base Salary
stipulated in this Agreement, unless all other Chief officers of the Company
(other than the CEO) are required to accept a similar reduction, or the
assignment of duties to the Executive which are inconsistent with those of an
executive officer. (iii) If Executive resigns with Good Reason and complies in
all respects with her obligations hereunder, Mylan will pay Executive, within
30 days of her separation from the Company, a lump sum equal to her
then-current Base Salary. Mylan shall also pay the cost of continuing
Executive’s health insurance benefits for the 12 months following her
separation from the Company; provided, however, that in the case of health
insurance continuation, Mylan’s obligation to provide health insurance benefits
shall end at such time as Executive obtains health insurance benefits through
another employer or otherwise in connection with rendering services for a third
party. Executive will continue to be bound by all provisions of this Agreement
that survive termination of employment.

     (b) Termination for Cause. Mylan agrees not to terminate Executive’s
employment during the term of this Agreement except for Cause, as defined
herein, and agrees to give Executive written notice of its belief that acts or
events constituting Cause exist. Executive has the right to cure within five
(5) days of Mylan’s giving of such notice, the acts, events or conditions which
led to such notice being given. For purposes of this Agreement, “Cause” shall
mean: (i) Executive’s willful and gross misconduct with respect to Mylan’s
business or affairs; (ii) Executive’s gross neglect of duties, dishonesty or
deliberate disregard of any material rule or policy of Mylan, (iii) Executive’s
conviction of a crime involving moral turpitude; or (iv) Executive’s conviction
of any felony. If Mylan terminates Executive’s employment for Cause, the
Company shall have no liability to Executive other than to pay Executive’s
wages and benefits through the effective date of Executive’s termination.
Executive, however, will continue to be bound by all provisions of this
Agreement that survive termination of employment.

     (c) Termination Without Cause. If Mylan discharges Executive without
Cause following her permanent relocation to the vicinity of the Company’s
principal offices, Mylan will pay Executive, within 30 days of her separation
from the Company, a lump sum equal to her then-current Base Salary. Mylan
shall also pay the cost of continuing Executive’s health insurance benefits for
the 12 months following such termination without Cause; provided, however, that
in the case of health insurance continuation, Mylan’s obligation to provide
health insurance benefits shall end at such time as Executive obtains health
insurance benefits through another employer or otherwise in

5

 

connection with rendering services for a third party. Executive will
continue to be bound by all provisions of this Agreement that survive
termination of employment.

     (d) Death or Incapacity. The employment of Executive shall automatically
terminate upon Executive’s death or upon the occurrence of a disability that
renders Executive incapable of performing the essential functions of her
position within the meaning of the Americans With Disabilities Act of 1990.
For all purposes of this Agreement, any such termination following her
permanent relocation to the vicinity of the Company’s principal offices shall
be treated in the same manner as a termination without Cause, as described in
Section 9(c) above, and Executive, or Executive’s estate, as applicable, shall
receive all consideration, compensation and benefits that would be due and
payable to Executive for a termination without Cause.

     (e) Extension or Renewal. The Term of Employment may be extended or
renewed upon mutual agreement of Executive and the Company. If the Term of
Employment is not extended or renewed on terms mutually acceptable to Executive
and the Company, and if this Agreement has not been sooner terminated for
reasons stated in Section 9(a), (b), (c) or (d) of this Agreement, Executive
shall be paid severance, within 30 days of her separation from the Company, in
an amount equal to her then-current Base Salary, and Executive’s health
insurance benefits shall be continued for 12 months at the Company’s cost;
provided, however, that in the case of health insurance continuation, the
Company’s obligation to provide health insurance benefits shall end at such
time as Executive, at her option, voluntarily obtains heath insurance benefits.

     (f) Return of Company Property. Upon the termination of Executive’s
employment for any reason, Executive shall immediately return to Mylan all
records, memoranda, files, notes, papers, correspondence, reports, documents,
books, diskettes, hard drives, electronic files, and all copies or abstracts
thereof that Executive has concerning any or all of the Mylan Companies’
business. Executive shall also immediately return all keys, identification
cards or badges and other company property.

     (g) No Duty to Mitigate. There shall be no requirement on the part of
Executive to seek other employment or otherwise mitigate damages in order to be
entitled to the full amount of any payments and benefits to which Executive is
otherwise entitled under any contract and the amount of such payments and
benefits shall not be reduced by any compensation or benefits received by
Executive from other employment.

     10. Indemnification. In the event that Executive is made a party or is
threatened to be made a party to or is involved in any action, suit or
proceeding, whether civil, criminal, administrative or investigative
proceeding), by reason of the fact that she is or was an officer, employee or
agent of or is or was serving at the request of Mylan as a director or officer,
employee or agent or another corporation, or of a partnership, joint venture,
trust or other enterprise, including service with respect to employee benefit
plans, whether the basis of such proceeding is alleged action in an official
capacity as a director, officer, employee or agent or in any other capacity
while serving as a director, officer, employee or agent, Executive shall be
indemnified and held harmless by Mylan

6

 

to the fullest extent authorized by law against all expenses, liabilities
and losses (including attorneys fees, judgments, fines, ERISA excise taxes or
penalties and amounts paid or to be paid in settlement) reasonably incurred or
suffered by Executive in connection therewith. Such right shall be a contract
right and shall include the right to be paid by Mylan expenses incurred in
defending any such proceeding in advance of its final disposition; provided,
however, that the payment of such expenses incurred by Executive in her
capacity as a director or officer (and not in any other capacity in which
service was or is rendered by Executive while a director or officer, including,
without limitation, service to an employee benefit plan) in advance of the
final disposition of such proceeding will be made only upon delivery to Mylan
of an understanding, by or on behalf of Executive, to repay all amounts to so
advanced if it should be determined ultimately that Executive is not entitled
to be indemnified under this section or otherwise.

Promptly after receipt by Executive of notice of the commencement of any
action, suit or proceeding for which Executive may be entitled to be
indemnified, Executive shall notify Mylan in writing of the commencement
thereof (but the failure to notify Mylan shall not relieve it from any
liability which it may have under this Section 10 unless and to the extent that
it has been prejudiced in a material respect by such failure or from the
forfeiture of substantial rights and defenses). If any such action, suit or
proceeding is brought against Executive and she notifies Mylan of the
commencement thereof, Mylan will be entitled to participate therein, and, to
the extent it may elect by written notice delivered to Executive promptly after
receiving the aforesaid notice from Executive, to assume the defense thereof
with counsel of its choosing, which may be the same counsel as counsel to
Mylan. Mylan shall not be liable for any settlement of any claim or action
effected without its written consent.

     11. Notices. All notices hereunder to the parties hereto shall be in
writing sent by certified mail, return receipt requested, postage prepaid, and
by fax, addressed to the respective parties at the following addresses:

	 	 	 
	     If to the Company:

	 	Mylan Laboratories Inc.
	

	 	1500 Corporate Drive
	

	 	Canonsburg, Pennsylvania 15317
	

	 	Attention: Chief Executive Officer
	 
	 	 
	     If to Executive:

	 	at the most recent address on record at the Company.

Either party may, by written notice complying with the requirements of this
section, specify another or different person or address for the purpose of
notification hereunder. All notices shall be deemed to have been given and
received on the day a fax is sent or, if mailed only, on the third business day
following such mailing.

     12. Withholding. All payments required to be made by Mylan hereunder to
Executive or her dependents, beneficiaries, or estate will be subject to the
withholding of such amounts relating to tax and/or other payroll deductions as
may be required by law.

7

 

     13. Modification and Waiver. This Agreement may not be changed or
terminated orally, nor shall any change, termination or attempted waiver of any
of the provisions contained in this Agreement be binding unless in writing and
signed by the party against whom the same is sought to be enforced, nor shall
this section itself by waived verbally. This Agreement may be amended only by a
written instrument duly executed by or on behalf of the parties hereto.

     14. Construction of Agreement. This Agreement and all of its provisions
were subject to negotiation and shall not be construed more strictly against
one party than against another party regardless of which party drafted any
particular provision.

     15. Successors and Assigns. This Agreement and all of its provisions,
rights and obligations shall be binding upon and inure to the benefit of the
parties hereto and Mylan’s successors and assigns. This Agreement may be
assigned by Mylan to any person, firm or corporation which shall become the
owner of substantially all of the assets of Mylan or which shall succeed to the
business of Mylan. No right or interest to or in any payments or benefits
hereunder shall be assignable by Executive; provided, however, that this
provision shall not preclude her from designating one or more beneficiaries to
receive any amount that may be payable after her death and shall not preclude
the legal representative of her estate from assigning any right hereunder to
the person or persons entitled thereto under her will or, in the case of
intestacy, to the person or persons entitled thereto under the laws of
intestacy applicable to her estate. The term ‘beneficiaries” as used in this
Agreement shall mean a beneficiary or beneficiary or beneficiaries so
designated to receive any such amount, or if no beneficiary has been so
designated, the legal representative of the Executive’s estate. No right,
benefit, or interest hereunder, shall be subject to anticipation, alienation,
sale, assignment, encumbrance, charge, pledge, hypothecation, or set-off in
respect of any claim, debt, or obligation, or to execution, attachment, levy,
or similar process, or assignment by operation of law. Any attempt, voluntary
or involuntary, to effect any action specified in the immediately preceding
sentence shall, to the full extent permitted by law, be null, void, and of no
effect.

     16. Choice of Law and Forum. This Agreement shall be construed and
enforced according to, and the rights and obligations of the parties shall be
governed in all respects by, the laws of the State of Pennsylvania. Any
controversy, dispute or claim arising out of or relating to this Agreement, or
the breach hereof, including a claim for injunctive relief, or any claim which,
in any way arises out of or relates to, Executive’s employment with Mylan or
the termination of said employment, including but not limited to statutory
claims for discrimination, shall be resolved by arbitration in accordance with
the then current rules of the American Arbitration Association respecting
employment disputes. The hearing of any such dispute will be held in
Morgantown, West Virginia, or Pittsburgh, Pennsylvania, at Mylan’s discretion
and the parties shall bear their own costs, expenses and counsel fees. The
decision of the arbitrator(s) will be final and binding on all parties and any
award rendered shall be enforceable upon confirmation by a court of competent
jurisdiction. Executive and Mylan expressly consent to the jurisdiction of any
such arbitrator over them.

8

 

     17. Headings. The headings of the sections of this Agreement have been
inserted for convenience of reference only and shall in no way affect the
interpretation of any of the terms or conditions of this Agreement.

     18. Execution in Counterparts. This Agreement may be executed in one or
more counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

     IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the
day and year first above mentioned.

	 	 	 	 	 
	MYLAN LABORATORIES INC.	 	EXECUTIVE:
	 
 
	 	 	 	 
	     /s/  Robert J. Coury	 	     /s/  Margaret A. McKenna
	
 	 	
 
	By:

	 	Robert J. Coury
	 	Margaret A. McKenna
	Its:

	 	Vice Chairman and CEO	 	 

9

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