Document:

Exhibit 10.11

 

Exhibit 10.11

AMENDED AND RESTATED RETIREMENT BENEFIT AGREEMENT

       This Amended Retirement Benefit Agreement (the “Agreement”) is entered into as of the
31st day of December, 2004 (the “Effective Date”) by and between:

Mylan Laboratories Inc., a Pennsylvania corporation, with offices located at 1500 Corporate
Drive, Canonsburg, PA 15317 (hereinafter referred to as “Mylan” or “Company”).

and

John P. O’Donnell, an executive officer of Mylan (hereinafter referred to as “Executive”).

WHEREAS, the parties entered into a Retirement Benefit Agreement effective March 14, 1995
(the “Prior Agreement”);

WHEREAS, Executive performs valuable services for the Company;

       WHEREAS, in recognition of his continuing service to Mylan, the Company wishes to provide
Executive with financial assistance with respect to certain retirement and death; and

       WHEREAS, the parties wish to RESCIND, and REPLACE the Prior Agreement with this Agreement;

       WITNESSETH THEREFORE that in consideration of the additional benefits provided for hereunder,
the premises and covenants set forth herein, and other good and valuable consideration, the
sufficiency of which is hereby acknowledged, the Company and Executive, intending to be legally
bound, agree as follows:

	I.  	DEFINITIONS
	 
	   	Whenever used in the Agreement the following terms shall be defined as follows:

	 	(a)  	“Agreement” shall mean this Retirement Benefit Agreement
which is entered into as of the 2nd day of December, 2004.
	 
	 	(b)  	“At-Will” shall mean with respect to the period of
Executive’s employment with Mylan or any subsidiary thereof, that the Company
is under no obligation to continue to employ Executive for any period of time,
and can terminate his employment at any time without notice, subject to
certain statutory and regulatory requirements, and if applicable, any
contractual rights Executive
may have; and that Executive is under no obligation to remain employed by
the Company or any subsidiary thereof.

 

 

	 	(c)  	“Board” shall mean the Board of Directors of the Company.
	 
	 	(d)  	“Change in Control” shall mean:

	 	(1)  	The acquisition by any individual, entity
or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the
Exchange Act) (a “Person”) of beneficial ownership (within the
meaning of Rule 13d-3 promulgated under the Exchange Act or any
successor provision) of 20% or more of either (A) the
then-outstanding shares of common stock of the Company (the
“Outstanding Company Common Stock”) or (B) the combined voting power
of the then-outstanding voting securities of the Company entitled to
vote generally in the election of directors (the “Outstanding Company
Voting Securities”); provided, however, that the following
acquisitions shall not constitute a Change in Control: (i) any
acquisition directly from the Company or any of its subsidiaries,
(ii) any acquisition by the Company or any of its subsidiaries, (iii)
any acquisition by any employee benefit plan (or related trust)
sponsored or maintained by the Company or any subsidiary thereof,
(iv) any acquisition by a Person that is permitted to, and actually
does, report its beneficial ownership on Schedule 13G (or any
successor schedule); provided that, if any Person subsequently
becomes required to or does report its beneficial ownership on
Schedule 13D (or any successor schedule), then, for purposes of this
paragraph, such Person shall be deemed to have first acquired, on the
first date on which such Person becomes required to or does so
report, beneficial ownership of all of the Outstanding Company Common
Stock and Outstanding Company Voting Securities beneficially owned by
it on such date or (v) any acquisition pursuant to a transaction that
complies with (3)(A), (3)(B) and (3)(C) below; or
	 
	 	(2)  	Individuals who, as of Effective Date,
constitute the Board (the “Incumbent Board”) cease for any reason to
constitute at least a majority of the Board; provided, however, that
any individual becoming a director subsequent to the date hereof
whose election, or nomination for election by the Company’s
shareholders, was approved by a vote of at least two-thirds of the
directors then comprising the Incumbent Board shall be considered as
though such individual were a member of the Incumbent Board;
provided, however, the
term “Incumbent Board” as used in this Agreement shall not include
any individual whose initial assumption of office occurs as a
result of or an actual or threatened

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	 	   	election contest with respect
to the election or removal of directors or other actual or
threatened solicitation of proxies or consents by or on behalf of
a Person other than the Board; or
	 
	 	(3)  	Consummation of a reorganization, merger,
statutory share exchange or consolidation or similar corporate
transaction involving the Company or any of its subsidiaries, a sale
or other disposition of all or substantially all of the assets of the
Company, or the acquisition of assets or stock of another entity by
the Company or any of its subsidiaries (each, a “Business
Combination”), in each case unless, following such Business
Combination, (A) the Outstanding Company Common Stock and the
Outstanding Company Voting Securities immediately prior to such
Business Combination continue to represent (either by remaining
outstanding or being converted into voting securities of the
resulting or surviving entity or any parent thereof) more than 50% of
the then-outstanding shares of common stock and the combined voting
power of the then-outstanding voting securities entitled to vote
generally in the election of directors, as the case may be, of the
corporation resulting from such Business Combination (including,
without limitation, a corporation that, as a result of such
transaction, owns the Company or all or substantially all of the
Company’s assets either directly or through one or more
subsidiaries), (B) no Person (excluding any employee benefit plan (or
related trust) of the Company or such corporation resulting from such
Business Combination) beneficially owns, directly or indirectly, 20%
or more of, respectively, the then-outstanding shares of common stock
of the corporation resulting from such Business Combination or the
combined voting power of the then-outstanding voting securities of
such corporation, except to the extent that such ownership existed
prior to the Business Combination, and (C) individuals who comprise
the Incumbent Board immediately prior to such Business Combination
constitute at least a majority of the members of the board of
directors of the corporation resulting from such Business Combination
(including, without limitation, a corporation that, as a result of
such transaction, owns the Company or all or substantially of the
Company’s assets either directly or through one or more
subsidiaries); or
	 
	 	(4)  	Approval by the shareholders of the Company
of a complete liquidation or dissolution of the Company.

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	 	(e)  	“Code” shall mean the Internal Revenue Code of 1986, as
amended.
	 
	 	(f)  	“Exchange Act” shall mean the Securities Exchange Act of
1934, as amended.
	 
	 	(g)  	“Mylan” or “Company” shall mean Mylan Laboratories Inc. or
any Successor thereof.
	 
	 	(h)  	“NPV” shall mean the sum of the present value at any given
time of the monthly benefits to be paid, using a discount rate equal to the
long-term applicable federal rate then in effect (determined under Section
1274(d) of the Code), compounded semiannually. For purposes of calculating NPV
where monthly benefits have not yet commenced, it shall be assumed that such
benefits would have commenced immediately.
	 
	 	(i)  	“Party” or “Parties” shall mean the Company or Executive, or
both the Company and Executive depending upon which term is required by the
context in which it is used.
	 
	 	(j)  	“Retire” or “Retirement” shall mean the day and date on which
Executive’s employment with the Company is terminated by either Party for any
reason other than death of Executive.
	 
	 	(k)  	“Successor” shall mean any person, partnership, limited
partnership, joint-venture, corporation, trust or any other entity or
organization who, subsequent to the Effective Date, comes into possession of
or acquires, either directly or indirectly, all or substantially all of the
Company’s business, assets or voting stock, or the right to direct the
business activities and practices of the Company.

	II.  	RETIREMENT

	 	2.1  	Upon his Retirement from the Company on or after March 31, 2007 (the “Full
Vesting Date”), Executive shall receive an annual retirement benefit equal to one
hundred and fifty thousand dollars ($150,000) for a period of fifteen (15) years (the
“Retirement Benefit”); provided, however, that if Executive Retires before the Full
Vesting Date, Executive shall be entitled to receive an annual retirement benefits
equal to one-hundred thousand dollars ($100,000) for a period of ten (10) years
(“Partial Retirement Benefit”).
	 
	 	2.2  	The Retirement Benefit shall also become fully vested upon the occurrence of
a Change in Control prior to the Full Vesting Date if
Executive is employed by the Company or any subsidiary thereof immediately prior to
the date upon which the Change in Control occurs.

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	 	2.3  	Should Executive become unable to perform the material and substantial duties
of his position prior to the Full Vesting Date by reason of a mental or physical
incapacity, then, subject to receipt of the determination made pursuant to Section
2.4, Executive shall be fully vested in his Retirement Benefit. The date of receipt
of such determination shall be considered the date on which the Retirement Benefit
becomes fully vested.
	 
	 	2.4  	The certification of a licensed physician selected by the Company as to
Executive’s inability to perform the material and substantial duties of his position
shall be conclusive with respect to his status regarding the application of Section
2.3 hereof.
	 
	 	2.5  	Except as otherwise provided herein, the Company shall pay the amount due
hereunder in equal or substantially equal monthly installments. Subject to Article X
or as otherwise provided herein, the first payment of the Retirement Benefit or the
Partial Retirement Benefit, as the case may be, shall be made on the first day of the
month following the month in which Executive Retires, and each subsequent payment
shall be made on the first day of each successive month until Company’s obligations
with respect to such payments have been satisfied.

	III.  	DEATH BENEFIT

	 	3.1  	If, while employed by the Company or any subsidiary thereof, Executive dies
prior to Retirement, the Company shall pay Executive’s beneficiary, in a lump sum, one
million two hundred and fifty thousand dollars ($1,250,000).
	 
	 	3.2  	If Executive Retires, and thereafter dies before having received the entire
Retirement Benefit or Partial Retirement Benefit, as the case may be, the balance of
the payments due thereunder shall be paid to Executive’s beneficiary in a lump sum
payment equal to the NPV of the remaining payments.

	IV.  	CHANGE IN CONTROL

	 	4.1  	If Executive’s Retirement Benefit becomes vested as a result of a Change in
Control pursuant to Section 2.2 hereof, then upon Executive’s Retirement on or after
such Change in Control, Executive’s Retirement Benefit shall be paid to Executive in a
lump sum payment equal to the NPV of the Full Retirement Benefit. Subject to Article
X, such lump sum payment shall be paid to Executive as soon as practicable following
Retirement.
	 
	 	4.2  	If Executive Retires prior to the date of a Change in Control, then upon
occurrence of a Change in Control prior to Executive’s receipt of the entire
Retirement Benefit or Partial Retirement Benefit, as the case may be, the

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	 	   	balance of
the payments due hereunder shall be paid to Executive in a lump sum payment equal to
the NPV of the remaining payments. Subject to Article X, such lump sum payment shall
be paid to Executive as soon as practicable following the occurrence of the Change in
Control.
	 
	 	4.3  	Upon the occurrence of a Change in Control, Articles VII (Consulting
Services) and VIII (Eligibility for Payment) hereof shall no longer be of any force
and effect.

	V.  	SUCCESSORSHIP
	 
	   	This Agreement in its entirety shall be binding upon and enforceable against the Company
and its Successors.
	 
	VI.  	EXECUTIVE CONDUCT WITH RESPECT TO COMPETITORS

	 	6.1  	Executive agrees that he will not for a one year period commencing on the
date of his Retirement, without the prior written consent of the Company, directly or
indirectly, whether as an employee, officer, director, independent contractor,
consultant, stockholder, partner or otherwise, engage in or assist others to engage in
or have any interest in any business which competes with the Company in any geographic
area in which the Company markets or has marketed its products during the year
preceding Retirement; provided, however, that Executive shall not be subject to this
Article VI, if after the occurrence of a Change in Control, the Company refuses, fails
or disputes any payments to be made to Executive hereunder, whether or not Executive
subsequently receives the payments contemplated by this Agreement.
	 
	 	6.2  	Notwithstanding anything to the contrary set forth elsewhere herein, stock
ownership in a competing business shall not be a breach of this Agreement, provided
such stock is traded on a national exchange.
	 
	 	6.3  	The Parties agree and acknowledge that the time, scope and geographic area
and other provisions of this Agreement have been specifically negotiated by the
Parties, and Executive specifically hereby agrees that such time, scope and geographic
area and other provisions are reasonable under these circumstances. Executive further
agrees that if, despite the express agreement of the Parties to this Agreement, a
court should hold any portion of this Agreement unenforceable for any reason, the
maximum restrictions of time, scope and geographic area reasonable under the
circumstances, as determined by the court, will be substituted for the restrictions
herein which such court may find to be unreasonable or unenforceable.
	 
	 	6.4  	The Parties acknowledge that the breach of Section 6.1 will be such that the
Company will not have an adequate remedy at law because the rights

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	 	  	of the Company
under this Agreement are of a specialized and unique character, and that immediate and
irreparable damage will result to the Company if Executive breaches his obligations
under Section 6.1. The Company may, in addition to any other remedies and damages
available, seek an injunction to restrain any such breach. Executive represents and
warrants that his expertise and capabilities are such that his obligations under
Section 6.1 will not prevent him from earning a living.

	VII.  	CONSULTING SERVICES

	 	7.1  	During the five (5) year period beginning on the day following Executive’s
Retirement he shall, at the request of the Company, act in the capacity of a
consultant for the Company, performing such services as may be consistent with those
performed by him during Executive’s employment. These services may be designated by
the Board, or its authorized representative, and shall be reasonable in scope duration
and frequency. In no case shall Executive be required to devote in excess of twenty
(20) hours a month to the provision of consulting services hereunder.
	 
	 	7.2  	The Company shall pay Executive for such consulting services an hourly rate
to be determined by the Parties at such time, but not less than the rate of five
hundred dollars ($500) per hour, payable monthly.
	 
	 	7.3  	In addition to the foregoing, the Company shall reimburse Executive monthly
for any and all out-of-pocket expenses incurred by Executive directly for the benefit
of the business of the Company.

	VIII.  	ELIGIBILITY FOR PAYMENT

	 	8.1  	Any and all payments due hereunder may be denied if not already begun, or
terminated if they have begun, if in the Company’s sole judgment Executive is either
not eligible for such payments, or once such payments have begun is found to be or
found to have been ineligible.
	 
	 	8.2  	Executive shall not be eligible for any payments hereunder if the Company, in
its sole discretion, finds that during or subsequent to his employment with the
Company he:

	 	(a)  	breaches, or has breached any term, provision or obligation
enumerated herein;
	 
	 	(b)  	committed any act by commission or omission which materially
and substantially adversely affects the Company’s business or reputation; or
	 
	 	(c)  	is convicted of any violation of the Federal Food, Drug and
Cosmetic Act, or the violation of any other statute of material relevance to
the Company’s business.

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	 	8.3  	Should Executive be paid any benefits hereunder and thereafter be found
ineligible, or to have been ineligible, he must return to the Company that portion of
the benefit paid to him for the period of his ineligibility.

	IX.  	NO PROMISE OF CONTINUED EMPLOYMENT

	 	9.1  	Executive acknowledges his employment with the Company is AT-WILL.

	X.  	SECTION 409A OF THE CODE
	 
	   	Notwithstanding anything to the contrary herein, if Executive is a Specified Employee (as
defined in Section 409A of the Code) at the time he would otherwise be entitled to receive
any payment hereunder, any such payment shall be delayed until the earliest date permitted
by Section 409A(a)(2) of the Code.
	 
	XI.  	RESTRICTION OF ALIENABILITY
	 
	   	Benefits payable to Executive or beneficiary shall not be subject to assignment, transfer,
attachment, execution, garnishment, sequestration, or any other seizure under any legal or
equitable process, whether on account of Executive’s or beneficiary’s act or by operation
of the law.
	 
	XII.  	CONTRACT ADMINISTRATOR
	 
	   	The Vice President of Human Resources, or other officer of Mylan designated by the
Compensation Committee of the Company is hereby named the contract administrator for
purposes of assuring compliance with the terms and conditions set forth herein.
	 
	XIII.  	MODIFICATION
	 
	   	This Agreement may not be changed, amended or otherwise modified other than by a written
statement; provided, such statement is signed by both Parties, expresses their intent to
change the Agreement, and specifically describes such changes.
	 
	XIV.  	HEADINGS
	 
	   	Except when referenced in the body of this Agreement article headings are set forth herein
for the purpose of convenience only. Such headings shall not be considered or otherwise
referred to when any question or issue arises with respect to the application or
interpretation of any term or condition set forth herein.
	 
	XV.  	COUNTERPARTS
	 
	   	This Agreement may be executed in two or more counterparts, each of which is to be
considered an original, and taken together as one and the same document.

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	XVI.  	GOVERNING LAW
	 
	   	Any an all actions between the Parties regarding the interpretation or application of any
term or provision set forth herein shall be governed by and interpreted in accordance with
the substantive laws, and not the law of conflicts, of the Commonwealth of Pennsylvania.
The Company and Executive each do hereby respectively consent and agree that the courts of
Commonwealth of Pennsylvania shall have jurisdiction, and venue shall properly lie with the
courts of Commonwealth of Pennsylvania, with respect to any and all actions brought
hereunder. The Company agrees to pay as incurred (within 10 days following the Company’s
receipt of an invoice from Executive), to the full extent permitted by law, all legal fees
and expenses that Executive may reasonably incur as a result of any contest or disagreement
(regardless of the outcome thereof) by the Company, Executive or others of the validity or
enforceability of, or liability under, any provision of this Agreement or any guarantee of
performance thereof (including as a result of any contest by Executive about the amount of
any payment pursuant to this Agreement), plus, in each case, interest on any delayed
payment at the applicable federal rate provided for in Section 7872(f)(2)(A) of the Code.
No obligation of the Company under this Agreement to pay Executive’s fees or expenses shall
in any manner confer upon the Company any right to select or approve any of the attorneys
or accountants engaged by Executive.
	 
	XVII.  	SINGULAR OR PLURAL
	 
	   	The singular form of any noun or pronoun shall include the plural when the context in which
such word is used is such that it is apparent the singular is intended to include the
plural and vice versa.
	 
	XVIII.  	ASSIGNMENT
	 
	   	The Agreement may not be assigned by either Party, without the written authorization of the
other Party. A Successor shall not be considered an assignee for purposes of this Article.
	 
	XIX.  	ENTIRE AGREEMENT
	 
	   	The terms and conditions set forth herein contain the entire agreement between the Company
and Executive, and supersede any and all prior agreements (including the Prior Agreement)
or understandings (whether express or implied) between the Parties with respect to the
matters set forth herein.
	 
	XX.  	SURVIVAL
	 
	   	Except as otherwise provided herein, Articles VI and VII hereof shall survive any
expiration or termination of this Agreement.

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	XXI.  	TERM
	 
	   	The term of this Agreement shall begin on the Effective Date and shall end on the date on
which Mylan makes the last payment to which it is obligated hereunder.

           IN WITNESS of their agreement to the terms and conditions set forth herein the Company and
Executive have caused the following signatures to be affixed hereto, effective as of the date first
set forth above:

MYLAN LABORATORIES INC.

	 	 	 	 	 	 	 
	By:

	 	 /s/ Robert J. Coury
	 	 	 	  /s/ John P. O’Donnell
	

	 	 
	 	 	 	 
	

	 	Robert J. Coury
	 	 	 	John P. O’ Donnell
	

	 	Vice Chairman and CEO
	 	 	 	 

10Exhibit 10.12

 

EXHIBIT 10.12

MYLAN LABORATORIES INC.

SEVERANCE PLAN

          The Company hereby adopts the Mylan Laboratories Inc. Severance Plan for the benefit of
certain employees of the Company and its subsidiaries, on the terms and conditions hereinafter
stated. All capitalized terms used herein are defined in Section 1 hereof. The Plan, as set forth
herein, is intended to help retain qualified employees, maintain a stable work environment and
provide economic security to eligible employees in the event of certain terminations of employment.
The Plan, as a “severance pay arrangement” within the meaning of Section 3(2)(B)(i) of ERISA, is
intended to be excepted from the definitions of “employee pension benefit plan” and “pension plan”
set forth under section 3(2) of ERISA, and is intended to meet the descriptive requirements of a
plan constituting a “severance pay plan” within the meaning of regulations published by the
Secretary of Labor at Title 29, Code of Federal Regulations §2510.3-2(b).

SECTION 1. DEFINITIONS. As hereinafter used:

          1.1 “Board” means the Board of Directors of the Company.

          1.2 “Cause” means (a) for purposes of a termination of employment (other than during
the Change in Control Protection Period): (i) the failure by the Eligible Employee to substantially
perform the Eligible Employee’s duties (other than any such failure resulting from the Eligible
Employee’s incapacity due to physical or mental illness), (ii) the continued failure by the
Eligible Employee to perform his duties at a satisfactory level of performance after written
notification from his or her manager or supervisor of such failure and after having been provided
with a reasonable opportunity to cure such failure, or (iii) the engaging by the Eligible Employee
in conduct which is injurious to the Company, monetarily or otherwise; and (b) for purposes of a
termination during the Change in Control Protection Period: (x) the willful and continued failure
by the Eligible Employee to substantially perform the Eligible Employee’s duties (other than any
such failure resulting from the Eligible Employee’s incapacity due to physical or mental illness)
or (y) the willful engaging by the Eligible Employee in conduct which is injurious to the Company,
monetarily or otherwise. For purposes of clause (b) above, no act, or failure to act, on the
Eligible Employee’s part shall be deemed “willful” unless done, or omitted to be done, by the
Eligible Employee not in good faith or without reasonable belief that the Eligible Employee’s act,
or failure to act, was in the best interests of the Company.

          1.3 A “Change in Control” shall be deemed to have occurred if the event set forth in
any one of the following paragraphs shall have occurred:

     (1) The acquisition by any individual, entity or group (within the meaning of Section 13(d)(3)
or 14(d)(2) of the Exchange Act) (a “Person”) of beneficial ownership (within the meaning of Rule
13d-3 promulgated under the Exchange Act or any successor provision) of 20% or more of either (A)
the then-outstanding shares of common stock of the Company (the “Outstanding Company Common Stock”)
or (B) the combined voting

 

 

power of the then-outstanding voting securities of the Company entitled to vote generally in
the election of directors (the “Outstanding Company Voting Securities”); provided, however, that,
for purposes of this Section 1.4(1), the following acquisitions shall not constitute a Change in
Control: (i) any acquisition directly from the Company or any of its subsidiaries, (ii) any
acquisition by the Company or any of its subsidiaries, (iii) any acquisition by any employee
benefit plan (or related trust) sponsored or maintained by the Company or any subsidiary, (iv) any
acquisition by a Person that is permitted to, and actually does, report its beneficial ownership on
Schedule 13G (or any successor schedule); provided that, if such Person subsequently becomes
required to or does report its beneficial ownership on Schedule 13D (or any successor schedule),
then, for purposes of this paragraph, such Person shall be deemed to have first acquired, on the
first date on which such Person becomes required to or does so report, beneficial ownership of all
of the Outstanding Company Common Stock and Outstanding Company Voting Securities beneficially
owned by it on such date or (v) any acquisition pursuant to a transaction that complies with
Section 1.3 (3)(A), (3)(B) and (3)(C); or

     (2) Individuals who, as of the Effective Date, constitute the Board (the “Incumbent Board”)
cease for any reason to constitute at least a majority of the Board; provided, however, that any
individual becoming a director subsequent to the Effective Date whose election, or nomination for
election by the Company’s shareholders, was approved by a vote of at least two-thirds of the
directors then comprising the Incumbent Board shall be considered as though such individual were a
member of the Incumbent Board; provided, however, the term “Incumbent Board” as used in this Plan
shall not include any such individual whose initial assumption of office as a director occurs as a
result of an actual or threatened election contest with respect to the election or removal of
directors or other actual or threatened solicitation of proxies or consents by or on behalf of a
Person other than the Board; or

     (3) Consummation of a reorganization, merger, statutory share exchange or consolidation or
similar corporate transaction involving the Company or any of its subsidiaries, a sale or other
disposition of all or substantially all of the assets of the Company, or the acquisition of assets
or stock of another entity by the Company or any of its subsidiaries (each, a “Business
Combination”), in each case unless, following such Business Combination, (A) the Outstanding
Company Common Stock and the Outstanding Company Voting Securities immediately prior to such
Business Combination continue to represent (either by remaining outstanding or being converted into
voting securities of the resulting or surviving entity or any parent thereof) more than 50% of the
then-outstanding shares of common stock and the combined voting power of the then-outstanding
voting securities entitled to vote generally in the election of directors, as the case may be, of
the corporation resulting from such Business Combination (including, without limitation, a
corporation that, as a result of such transaction, owns the Company or all or substantially all of
the Company’s assets either directly or through one or more subsidiaries), (B) no Person (excluding
any employee benefit plan (or related trust) of the Company or such corporation resulting from such
Business Combination) beneficially owns, directly or indirectly, 20% or more of, respectively, the
then-outstanding shares of common stock of the corporation resulting from such Business Combination
or the combined voting power of the then-outstanding

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voting securities of such corporation, except to the extent that such ownership existed prior
to the Business Combination, and (C) individuals who comprise the Incumbent Board immediately prior
to such Business Combination constitute at least a majority of the members of the board of
directors of the corporation resulting from such Business Combination (including, without
limitation, a corporation that, as a result of such transaction, owns the Company or all or
substantially of the Company’s assets either directly or through one or more subsidiaries); or

     (4) Approval by the shareholders of the Company of a complete liquidation or dissolution of
the Company.

          1.4 “Change in Control Protection Period” shall mean the period commencing on the date
a Change in Control occurs and ending on the 2nd anniversary of such date.

          1.5 “COBRA” means the Consolidated Omnibus Budget Reconciliation Act of 1985, as from
time to time amended.

          1.6 “Code” means the Internal Revenue Code of 1986, as it may be amended from time to
time.

          1.7 “Company” means Mylan Laboratories Inc. or any successors thereto.

          1.8 “Disability” means a physical or mental condition entitling the Eligible Employee
to benefits under the applicable long-term disability plan of the Company or any its subsidiaries,
or if no such plan exists, causing the Eligible Employee to be unable to substantially perform his
or her duties for at least 6 months in any 12-month period.

          1.9 “Effective Date” shall mean the date on which the Board adopts this Plan.

          1.10 “Eligible Employee” means, (i) for purposes of terminations of employment (other
than during the Change in Control Protection Period), any full-time employee of the Company or any
subsidiary thereof who has completed at least two (2) Years of Service with the Company or any
subsidiary prior to his or her Severance Date and (ii) for purposes of terminations of employment
during the Change in Control Protection Period, any full-time employee of the Company or any
subsidiary thereof; provided, however, that Eligible Employees shall not include (1) any employees
in respect of whom the Company has entered into a collective bargaining agreement, (2) any
individual who is a party to a written employment agreement or is eligible under any other plan,
policy or arrangement sponsored or maintained by the Company or any subsidiary (including but not
limited to an entity that may become a subsidiary after the Effective Date) thereof (other than a
Transition and Succession Agreement) that provides for severance payment and benefits upon
termination of employment, unless such individual elects to waive all severance payments and
benefits under such agreement, plan, policy or arrangement in connection with such individual’s
termination of

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employment or (3) any individual who is actually entitled (i.e., not just eligible) to
receive severance payments and benefits pursuant to a Transition and Succession Agreement with the
Company.

          1.11 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

          1.12 “Exchange Act” means the Securities Exchange Act of 1934, as amended.

          1.13 “Excise Tax” shall mean any excise tax imposed under section 4999 of the Code or
any successor provision thereto.

          1.14 “Good Reason” for a Tier I Employee or a Tier II Employee means (i) a material
adverse alteration in the nature or status of the employee’s responsibilities with the Company or
any subsidiary thereof from those in effect immediately prior to the Change in Control, (ii) a
reduction in the employee’s annual salary or target bonus opportunity from those in effect
immediately prior to the Change in Control, or (iii) a relocation of the employee’s principal place
of employment that causes the employee’s commute from his or her principal residence to the new
work location to increase by 30 miles or more. “Good Reason” for any other Eligible
Employee means (x) a reduction in the employee’s annual base salary or (y) a relocation of the
employee’s principal place of employment that causes the employee’s commute from his or her
principal residence to the new work location to increase by 30 miles or more.

          1.15 “Plan” means the Mylan Laboratories Inc. Severance Plan, as set forth herein, as
it may be amended from time to time.

          1.16 “Plan Administrator” means the person or persons appointed from time to time by
the Board which appointment may be revoked at any time by the Board.

          1.17 A “Potential Change in Control” shall be deemed to have occurred if the event set
forth in any one of the following paragraphs shall have occurred:

     (1) The Company enters into a definitive agreement, the consummation of which would result in
the occurrence of a Change in Control;

     (2) Any Person (other than the Company or any of its subsidiaries) commences (within the
meaning of Regulation 14D promulgated under the Exchange Act or any successor regulation) a tender
or exchange offer which, if consummated, would result in a Change in Control;

     (3) Any Person (other than the Company or any of its subsidiaries) files with the Securities
and Exchange Commission a preliminary or definitive proxy statement relating to an election contest
with respect to the election or removal of directors of the Company which solicitation, if
successful, would result in a Change in Control;

4

 

     (4) The acquisition by any Person of beneficial ownership (within the meaning of Rule 13d-3
promulgated under the Exchange Act or any successor provision) of 15% or more of either (A) the
Outstanding Company Common Stock or (B) the combined voting power of the Outstanding Company Voting
Securities; provided, however, that, for purposes of this Section 1.17, the following acquisitions
shall not constitute a Potential Change in Control: (i) any acquisition directly from the Company
or any of its subsidiaries, (ii) any acquisition by the Company or any of its subsidiaries, (iii)
any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the
Company or any subsidiary; or (iv) any acquisition by a Person that is permitted to, and actually
does, report its beneficial ownership on Schedule 13G (or any successor schedule); provided that,
if such Person subsequently becomes required to or does report its beneficial ownership on Schedule
13D (or any successor schedule), and at the time has beneficial ownership of 15% or more of either
the Outstanding Company Common Stock or the combined voting power of the Outstanding Company Voting
Securities, then a Potential Change in Control shall be deemed to occur at such time; or

     (5) The Board adopts a resolution to the effect that a Potential Change in Control has
occurred.

          1.18 “Severance” means (1) the involuntary termination of an Eligible Employee’s
employment by the Company or any subsidiary thereof other than for Cause, death or Disability or
(2) a voluntary termination of an Eligible Employee’s employment for Good Reason during the Change
in Control Protection Period; provided, however, that a Severance shall not occur by reason of the
divestiture of a facility, sale of a business or business unit, or the outsourcing of a business
activity with which the Eligible Employee is affiliated if the Eligible Employee is offered
comparable employment by the entity which acquires such facility, business or business unit or
which succeeds to such outsourced business activity.

          1.19 “Severance Date” means the date on which an Eligible Employee incurs a Severance.

          1.20 “Tier I Employee” means an Eligible Employee in Pay Grade 17 or higher,
determined as of the Severance Date, or any other Eligible Employee designated by the Company as a
Tier I Employee.

          1.21 “Tier II Employee” means an Eligible Employee in Pay Grades 13 through 16,
determined as of the Severance Date, or any other Eligible Employee designated by the Company as a
Tier II Employee.

          1.22 “Tier III Employee” means an Eligible Employee in Pay Grade 7 through 12,
determined as of the Severance Date, or any other Eligible Employee designated by the Company as a
Tier III Employee.

          1.23 “Tier IV Employee” means an Eligible Employee in Pay Grades 5 through 6,
determined as of the Severance Date, or any other Eligible Employee designated by the Company as a
Tier IV Employee.

5

 

          1.24 “Tier V Employee” means an Eligible Employee who is not, as of his or her
Severance Date, a Tier I Employee, Tier II Employee, Tier III Employee, or Tier IV Employee.

          1.25 “Years of Service” shall mean an Eligible Employee’s number of continuous years
of employment with the Company and/or any subsidiary thereof since the Employee’s most recent hire
date. In computing Years of Service, a period between six full months of employment and one year
shall be deemed to be one full year, and a period of less than six full months shall be deemed to
be zero years. For example, nine years and six months will be deemed to be ten Years of Service
while nine years and anything less than six full months will be deemed to be nine Years of Service.
During the Change in Control Protection Period, any Eligible Employee who has fewer than two Years
of Service since his or her most recent hire date will be deemed to have two Years of Service for
purposes of this Plan.

SECTION 2. SEVERANCE BENEFITS (OTHER THAN DURING CHANGE IN CONTROL PROTECTION PERIOD).

          2.1 Tier I Employees. Each Tier I Employee who incurs a Severance other than during a
Change in Control Protection Period shall be entitled to (i) continuation of his or her annual base
salary, as in effect on the Severance Date, for a number of months equal to his or her Years of
Service, but with a minimum of nine (9) months and a maximum of twelve (12) months, (ii) a monthly
payment for the number of months he or she receives salary continuation pursuant to this Section
2.1 (or would have received such payments if the Company had not elected to make a lump sum payment
pursuant to Section 2.7), in an amount equal to the cost of premiums for continuation of coverage
under COBRA for such employee and his eligible dependents; provided, however, that payments
otherwise due to such Eligible Employee shall cease to the extent benefits of the same type are
received by or made available to such Eligible Employee by a subsequent employer, and (iii)
outplacement services for up to twelve (12) months following the Severance Date.

          2.2 Tier II Employees. Each Tier II Employee who incurs a Severance other than during
the Change in Control Protection Period shall be entitled to (i) continuation of his or her annual
base salary, as in effect on the Severance Date, for a number of months equal to his or her Years
of Service, but with a minimum of six (6) months and a maximum of nine (9) months, (ii) a monthly
payment for the number of months he or she receives salary continuation pursuant to this Section
2.2 (or would have received such payments if the Company had not elected to make a lump sum payment
pursuant to Section 2.7), in an amount equal to the cost of premiums for continuation of coverage
under COBRA for such employee and his eligible dependents; provided, however, that payments
otherwise due to such Eligible Employee shall cease to the extent benefits of the same type are
received by or made available to such Eligible Employee by a subsequent employer, and (iii)
outplacement services for up to nine (9) months following the Severance Date.

6

 

          2.3 Tier III and IV Employees. Each Tier III Employee and Tier IV Employee who incurs
a Severance other than during a Change in Control Protection Period shall be entitled to (i)
continuation of his or her annual base salary, as in effect on the Severance Date, for a number of
months equal to his or her Years of Service, but with a minimum of three (3) months and a maximum
of six (6) months and (ii) a monthly payment for the number of months he or she receives salary
continuation pursuant to this Section 2.3 (or would have received such payments if the Company had
not elected to make a lump sum payment pursuant to Section 2.7), in an amount equal to the cost of
premiums for continuation of coverage under COBRA for such employee and his eligible dependents;
provided, however, that payments otherwise due to such Eligible Employee shall cease to the extent
benefits of the same type are received by or made available to such Eligible Employee by a
subsequent employer. In addition, each Tier III Employee shall be provided with outplacement
services for a number of months equal to the number of months during which he or she is receiving
salary continuation payments (or would have received such payments if the Company had not elected
to make a lump sum payment pursuant to Section 2.7).

          2.4 Tier V Employees. Each Tier V Employee who incurs a Severance other than during a
Change in Control Protection Period shall be entitled to (i) continuation of his or her annual base
salary, as in effect on the Severance Date, for a number of months equal to his or her Years of
Service, but with a minimum of two (2) months and a maximum of four (4) months and (ii) a monthly
payment for the number of months he or she receives salary continuation pursuant to this Section
2.4 (or would have received such payments if the Company had not elected to make a lump sum payment
pursuant to Section 2.7), in an amount equal to the cost of premiums for continuation of coverage
under COBRA for such employee and his eligible dependents; provided, however, that payments
otherwise due to such Eligible Employee shall cease to the extent benefits of the same type are
received by or made available to such Eligible Employee by a subsequent employer.

          2.5 Release. Notwithstanding the foregoing, as a condition to the receipt of any
payment pursuant to the applicable provision of this Section 2, each Eligible Employee shall be
required to execute and not revoke (within the seven (7) day revocation period) a Separation
Agreement provided by the Company which contains a general release of claims in favor of the
Company.

          2.6 Time of Payments. Subject to Section 7.11 hereof, all payments required to be
made hereunder to an Eligible Employee shall be made or commence as soon as practicable following
such employee’s Severance Date.

          2.7 Lump Sum Payment. The Company may, in its sole discretion, elect to pay severance
benefits hereunder in a lump sum but only to the extent permissible under, and then only in
accordance with the requirements of, Section 409A of the Code.

7

 

SECTION 3. CHANGE IN CONTROL SEVERANCE BENEFITS

          3.1 Generally. Subject to Section 3.7 and Section 5 hereof, Eligible Employees shall
be entitled to severance benefits pursuant to the applicable provisions of this Section 3 if they
incur a Severance during the Change in Control Protection Period. For purposes of calculating
severance benefits pursuant to this Section 3, any reduction in an Employee’s annual base salary or
annual target bonus during the Change in Control Protection Period shall be disregarded.

          3.2 Tier I Employees. Subject to Section 3.7 and Section 5 hereof, the Company shall
pay to each Tier I Employee who incurs a Severance during the Change in Control Protection Period a
lump sum payment equal to two (2) times the sum of his or her then annual base salary plus his or
her annual target bonus for the year in which the Severance occurs.

          3.3 Tier II, III, IV and V Employees. Subject to Section 3.7 and Section 5 hereof,
the Company shall pay to each Tier II Employee, Tier III Employee, Tier IV Employee and Tier V
Employee who incurs a Severance during the Change in Control Protection Period a lump sum payment
equal to two times the sum of all monthly severance payments the employee would have received under
the applicable provisions of Section 2 hereof if his or her employment was terminated by the
Company other than for Cause, death or Disability prior to the Change in Control Protection Period.
For the avoidance of doubt, such payment shall not include an amount in respect of COBRA premiums.

          3.4 Health & Dental Benefit Continuation. Subject to Section 3.7 and Section 5
hereof, in the case of each Eligible Employee who incurs a Severance during the Change in Control
Protection Period, commencing on the date immediately following such Eligible Employee’s Severance
Date and continuing for the period set forth below (the “Welfare Benefit Continuation Period”), the
Company shall provide to each such Eligible Employee and anyone entitled to claim under or through
such employee all Company-paid benefits under any group health plan and dental plan of the Company
(as in effect immediately prior to such employee’s Severance Date or, if more favorable to such
employee, immediately prior to the Change in Control) for which employees of the Company are
eligible, to the same extent as if such employee had continued to be an employee of the Company
during the Welfare Benefit Continuation Period. To the extent that such employee’s participation
in Company benefit plans is not practicable, the Company shall arrange to provide, at the Company’s
sole expense, such employee and anyone entitled to claim under or through such employee with
equivalent health and dental benefits under an alternative arrangement during the Welfare Benefit
Continuation Period. The coverage period for purposes of the group health continuation
requirements of Section 4980B of the Code shall commence at the expiration of the Welfare Benefit
Continuation Period. The Welfare Benefit Continuation Period shall be twenty-four (24) months for
each Tier I Employee who incurs a Severance during the Change in Control Protection Period and, for
each other Eligible Employee who incurs a Severance during the Change in Control Protection Period,
shall be a number of months equal to two times the number of months he or she would have received
salary continuation pursuant to the

8

 

applicable provisions of Section 2 hereof if his or her employment was terminated by the
Company prior to the Change in Control other than for Cause, death or Disability.

          3.5 Outplacement Services. Subject to Section 3.7 and Section 5 hereof, each Tier I
Employee, Tier II Employee, Tier III Employee and Tier IV Employee who incurs a Severance during
the Change in Control Protection Period shall be provided with outplacement services as if such
employee had been terminated prior to the Change in Control Protection Period and had been entitled
to receive outplacement benefits pursuant to the applicable provisions of Section 2 hereof
(determined without regard to any service requirement).

          3.6 Legal Fees. The Company shall reimburse each Eligible Employee whose termination
of employment occurs during the Change in Control Protection Period for all reasonable legal fees
and expenses incurred by such Eligible Employee in seeking to obtain or enforce any right or
benefit provided under Section 3 of this Plan (other than any such fees and expenses incurred in
pursuing any claim determined by an arbitrator or by a court of competent jurisdiction to be
frivolous or not to have been brought in good faith).

          3.7 Release. No Eligible Employee who incurs a Severance during the Change in
Control Protection Period shall be eligible to receive any payments or other benefits under the
Plan unless he or she first executes a written release substantially in the form attached hereto as
Schedule A and does not revoke such release within the time permitted therein for such revocation.

          3.8 Payment of Benefits. Subject to Section 7.11 hereof, all payments required to be
made hereunder to an Eligible Employee shall be made in a cash lump sum within 2 business days
following the receipt of an effective release contemplated by Section 3.7 above.

SECTION 4. PLAN ADMINISTRATION.

          4.1 The Plan Administrator shall administer the Plan and may interpret the Plan, prescribe,
amend and rescind rules and regulations under the Plan and make all other determinations necessary
or advisable for the administration of the Plan, subject to all of the provisions of the Plan.

          4.2 The Plan Administrator may delegate any of its duties hereunder to such person or persons
from time to time as it may designate.

          4.3 The Plan Administrator is empowered, on behalf of the Plan, to engage accountants, legal
counsel and such other personnel as it deems necessary or advisable to assist it in the performance
of its duties under the Plan. The functions of any such persons engaged by the Plan Administrator
shall be limited to the specified services and duties for which they are engaged, and such persons
shall have no other duties, obligations or responsibilities under the Plan. Such persons shall
exercise no discretionary authority or discretionary control respecting the management of the Plan.
All reasonable expenses thereof shall be borne by the Company.

9

 

SECTION 5. EXCISE TAX.

          If any payment or benefit received or to be received by an Eligible Employee (including any
payment or benefit received pursuant to the Plan or otherwise) would be (in whole or part) subject
to the excise tax described in Section 4999 of Code, then, to the extent necessary to make such
payments and benefits not subject to such excise tax, payments and benefits provided hereunder
shall be reduced by the Plan Administrator in consultation with the Eligible Employee.

SECTION 6. PLAN MODIFICATION OR TERMINATION.

          The Plan may be amended or terminated by the Board at any time; provided, however, that (i) no
termination or amendment may reduce the benefits or payments under the Plan to an Eligible Employee
if the Eligible Employee’s Severance Date has occurred prior to such termination or amendment and
(ii) during the pendency of the Potential Change in Control (and for a period of six months
thereafter), as well as during the Change in Control Protection Period, the Plan may not be
terminated, nor may the Plan be amended if such amendment would in any manner be adverse to the
interests of any Eligible Employee (it being understood, however, that clause (ii) shall not
preclude the Plan from being amended to bring it into compliance with Section 409A of the Code).
During the periods referred to in clause (ii) of the preceding sentence, but not during any other
period, any reduction in an Eligible Employee’s Pay Grade or any redesignation of any such employee
to a less favorable tier shall be disregarded for purposes of the Plan.

SECTION 7. GENERAL PROVISIONS.

          7.1 Except as otherwise provided herein or by law, no right or interest of any Eligible
Employee under the Plan shall be assignable or transferable, in whole or in part, either directly
or by operation of law or otherwise, including without limitation by execution, levy, garnishment,
attachment, pledge or in any manner; no attempted assignment or transfer thereof shall be
effective; and no right or interest of any Eligible Employee under the Plan shall be liable for, or
subject to, any obligation or liability of such Eligible Employee. When a payment is due under
this Plan to a severed employee who is unable to care for his or her affairs, payment may be made
directly to his or her legal guardian or personal representative.

          7.2 If the Company or any subsidiary thereof is obligated by law or by contract to pay
severance pay, a termination indemnity, notice pay, or the like, or if the Company or any
subsidiary thereof is obligated by law to provide advance notice of separation (“Notice Period”),
then any severance pay hereunder shall be reduced by the amount of any such severance pay,
termination indemnity, notice pay or the like, as applicable, and by the amount of any compensation
received during any Notice Period.

          7.3 Neither the establishment of the Plan, nor any modification thereof, nor the creation of
any fund, trust or account, nor the payment of any benefits shall be construed as giving any
Eligible Employee, or any person whomsoever, the right to be

10

 

retained in the service of the Company or any subsidiary thereof, and all Eligible Employees
shall remain subject to discharge to the same extent as if the Plan had never been adopted.

          7.4 If any provision of this Plan shall be held invalid or unenforceable, such invalidity or
unenforceability shall not affect any other provisions hereof, and this Plan shall be construed and
enforced as if such provisions had not been included.

          7.5 This Plan shall inure to the benefit of and be binding upon the heirs, executors,
administrators, successors and assigns of the parties, including each Eligible Employee, present
and future, and any successor to the Company. If a severed employee shall die while any amount
would still be payable to such severed employee hereunder if the severed employee had continued to
live, all such amounts, unless otherwise provided herein, shall be paid in accordance with the
terms of this Plan to the executor, personal representative or administrators of the severed
employee’s estate.

          7.6 The headings and captions herein are provided for reference and convenience only, shall
not be considered part of the Plan, and shall not be employed in the construction of the Plan.

          7.7 The Plan shall not be funded. No Eligible Employee shall have any right to, or interest
in, any assets of any Company which may be applied by the Company to the payment of benefits or
other rights under this Plan.

          7.8 Any notice or other communication required or permitted pursuant to the terms hereof shall
have been duly given when delivered or mailed by United States Mail, first class, postage prepaid,
addressed to the intended recipient at his, her or its last known address.

          7.9 This Plan shall be construed and enforced according to the laws of the Commonwealth of
Pennsylvania to the extent not preempted by federal law, which shall otherwise control.

          7.10 All benefits hereunder shall be reduced by applicable withholding and shall be subject to
applicable tax reporting, as determined by the Plan Administrator.

          7.11 Notwithstanding anything to the contrary herein, any amounts otherwise payable to or in
respect of a Specified Employee (as defined in Section 409A of the Code) pursuant to this Plan
shall be delayed until the earliest date permitted by Section 409A(a)(2) of the Code.

SECTION 8. CLAIMS, INQUIRIES, APPEALS.

          8.1 Applications for Benefits and Inquiries. Any application for benefits, inquiries
about the Plan or inquiries about present or future rights under the Plan must be submitted to the
Plan Administrator in writing, as follows:

11

 

Plan Administrator

c/o Mylan Laboratories Inc.

1500 Corporate Drive

Canonsburg, PA 15317

          8.2 Denial of Claims. In the event that any application for benefits is denied in
whole or in part, the Plan Administrator must notify the applicant, in writing, of the denial of
the application, and of the applicant’s right to review the denial. The written notice of denial
will be set forth in a manner designed to be understood by the employee, and will include specific
reasons for the denial, specific references to the Plan provision upon which the denial is based, a
description of any information or material that the Plan Administrator needs to complete the
review, and an explanation of the Plan’s review procedure.

This written notice will be given to the employee within ninety (90) days after the Plan
Administrator receives the application, unless special circumstances require an extension of time,
in which case, the Plan Administrator has up to an additional ninety (90) days for processing the
application. If an extension of time for processing is required, written notice of the extension
will be furnished to the applicant before the end of the initial ninety (90)-day period.

This notice of extension will describe the special circumstances necessitating the additional time
and the date by which the Plan Administrator is to render his or her decision on the application.
If written notice of denial of the application for benefits is not furnished within the specified
time, the application shall be deemed to be denied. The applicant will then be permitted to appeal
the denial in accordance with the Review Procedure described below.

          8.3 Request for a Review. Any person (or that person’s authorized representative) for
whom an application for benefits is denied (or deemed denied), in whole or in part, may appeal the
denial by submitting a request for a review to the Plan Administrator within 60 days after the
application is denied (or deemed denied). The Plan Administrator will give the applicant (or his
or her representative) an opportunity to review pertinent documents in preparing a request for a
review and submit written comments, documents, records and other information relating to the claim.
A request for a review shall be in writing and shall be addressed to:

Plan Administrator

c/o Mylan Laboratories Inc.

1500 Corporate Drive

Canonsburg, PA 15317

With a copy to:

Chief Legal Officer

Mylan Laboratories Inc.

1500 Corporate Drive

Canonsburg, PA 15317

12

 

A request for review must set forth all of the grounds on which it is based, all facts in support
of the request and any other matters that the applicant feels are pertinent. The Plan
Administrator may require the applicant to submit additional facts, documents or other material as
he or she may find necessary or appropriate in making his or her review.

          8.4 Decision on Review. The Plan Administrator will act on each request for review
within sixty (60) days after receipt of the request, unless special circumstances require an
extension of time (not to exceed an additional sixty (60) days), for processing the request for a
review. If an extension for review is required, written notice of the extension will be furnished
to the applicant within the initial sixty (60)-day period. The Plan Administrator will give
prompt, written notice of his or her decision to the applicant. In the event that the Plan
Administrator confirms the denial of the application for benefits in whole or in part, the notice
will outline, in a manner calculated to be understood by the applicant, the specific Plan
provisions upon which the decision is based. If written notice of the Plan Administrator’s
decision is not given to the applicant within the time prescribed in this Section 8.4 the
application will be deemed denied on review.

          8.5 Rules and Procedures. The Plan Administrator may establish rules and procedures,
consistent with the Plan and with ERISA, as necessary and appropriate in carrying out his or her
responsibilities in reviewing benefit claims. The Plan Administrator may require an applicant who
wishes to submit additional information in connection with an appeal from the denial (or deemed
denial) of benefits to do so at the applicant’s own expense.

          8.6 Exhaustion of Remedies. No legal action for benefits under the Plan may be
brought until the claimant (i) has submitted a written application for benefits in accordance with
the procedures described by Section 8.1 above, (ii) has been notified by the Plan Administrator
that the application is denied (or the application is deemed denied due to the Plan Administrator’s
failure to act on it within the established time period), (iii) has filed a written request for a
review of the application in accordance with the appeal procedure described in Section 8.3 above
and (iv) has been notified in writing that the Plan Administrator has denied the appeal (or the
appeal is deemed to be denied due to the Plan Administrator’s failure to take any action on the
claim within the time prescribed by Section 8.4 above).

13

 

SCHEDULE A

WAIVER AND RELEASE OF CLAIMS AGREEMENT

          YOU HAVE BEEN ADVISED TO CONSULT AN ATTORNEY PRIOR TO SIGNING THIS AGREEMENT.

          YOU HAVE [FORTY-FIVE] [TWENTY-ONE] DAYS AFTER RECEIVING THIS AGREEMENT TO CONSIDER WHETHER TO
SIGN IT.

          AFTER SIGNING THIS AGREEMENT, YOU HAVE ANOTHER SEVEN DAYS IN WHICH TO REVOKE IT, AND IT DOES
NOT TAKE EFFECT UNTIL THOSE SEVEN DAYS HAVE ENDED.

          In consideration of, and subject to, the payments to be made to me by Mylan Laboratories Inc.
(“Mylan”) or any of its subsidiaries, pursuant to the Mylan Laboratories Severance Plan (the
“Plan”), which I acknowledge that I would not otherwise be entitled to receive, I hereby waive any
claims I may have for employment or re-employment by Mylan or any subsidiary thereof after the date
hereof, and I further agree to and do release and forever discharge Mylan or any subsidiary of
Mylan and their respective past and present officers, directors, shareholders, employees and agents
from any and all claims and causes of action, known or unknown, arising out of or relating to my
employment with Mylan or any subsidiary of Mylan or the termination thereof, including, but not
limited to, wrongful discharge, breach of contract, tort, fraud, any State’s Human Relations Act,
the Americans with Disabilities Act, Title VII of the Civil Rights Act of 1964, the Civil Rights
Act of 1991, Sections 1981-1988 of Title 42 of the U. S. Code, Older Workers’ Benefit Protection
Act, Family and Medical Leave Act, the Fair Labor Standards Act, any State’s Wage Payment and
Collection laws, the Age Discrimination in Employment Act of 1967, the Pregnancy Discrimination
Act, the Employee Retirement Income Security Act of 1974, all as amended. Should you decide to
file any charge or legal claim against the Company, you agree to waive your right to recover any
damages or other relief awarded to you which arises out of any such charge or legal claim made by
you against the Company.

          Notwithstanding the foregoing or any other provision hereof, nothing in this Waiver and
Release of Claims Agreement shall adversely affect (i) my rights under the Plan; (ii) my rights to
benefits other than severance benefits under plans, programs and arrangements of Mylan or any
subsidiary or parent of Mylan; or (iii) my rights to indemnification under any indemnification
agreement, applicable law and the certificates of incorporation and bylaws of Mylan and any
subsidiary of Mylan, and my rights under any director’s and officer’s liability insurance policy
covering me.

          I acknowledge that I have signed this Waiver and Release of Claims Agreement voluntarily,
knowingly, of my own free will and without reservation or duress, and that no promises or
representations, written or oral, have been made to me by any person to induce me to do so other
than the promise of payment set forth in the first

14

 

paragraph above and Mylan’s acknowledgment of my rights reserved under the preceding paragraph
above.

          I understand that this release will be deemed to be an application for benefits under the
Plan, and that my entitlement thereto shall be governed by the terms and conditions of the Plan,
and I expressly hereby consent to such terms and conditions.

          I acknowledge that I have been given not less than [forty-five (45)] [twenty-one (21)] days to
review and consider this Waiver and Release of Claims Agreement, and that I have had the
opportunity to consult with an attorney or other advisor of my choice and have been advised by
Mylan to do so if I choose. I may revoke this Waiver and Release of Claims Agreement seven days or
less after its execution by providing written notice to the Vice-President of Human Resources at
Mylan’s corporate headquarters (or some other designee).

          Finally, I acknowledge that I have carefully read this Waiver and Release of Claims Agreement
and understand all of its terms. This is the entire Agreement between the parties and is legally
binding and enforceable.

15

 

          This Waiver and Release of Claims Agreement shall be governed and interpreted under federal
law and the laws of Pennsylvania.

          I knowingly and voluntarily sign this Waiver and Release of Claims Agreement and agree to be
bound by its terms.

	 	 	 	 	 	 	 	 	 
	Date Delivered to Employee:	 	 	 	Mylan Laboratories Inc.
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Date Signed by Employee:	 	 	 	By:	 	 
	

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Title:	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Seven-Day Revocation Period Ends:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Signed:

	 	 	 	 	 	Date:	 	 
	

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	(Print Employee’s Name)	 	 	 	 	 	 

16

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