Supplemental Health Insurance Program
                             For Certain Officers of
                             Mylan Laboratories Inc.

Introduction

Mylan Laboratories Inc. ("Mylan") adopts this "Supplemental Health Insurance
Program for Certain Officers of Mylan Laboratories Inc." ("Program") effective
for retirements occurring on and after December 15, 2001 to provide
post-retirement health coverage benefits for certain executive officers of Mylan
Laboratories Inc. ("Company"), their spouses and their eligible dependents. The
officers of the Company who are eligible to participate in this Program are
those officers of Mylan Laboratories Inc. who have been employed (as common-law
employees) by the Company, its subsidiaries or affiliates or predecessors to the
Company, its subsidiaries or predecessors, for a period of at least fifteen (15)
years ("Officers") and have retired from the Company after attaining age
fifty-five (55.) Such employment need not be consecutive or contiguous. The
Board may also extend this Program to the survivors of an Officer who dies prior
to his or her retirement.

Unless otherwise described herein, the terms used in this Program shall have the
same meanings as the terms used in the Company's Health Plan that provides
health benefit coverage to the Officer immediately before the Officer terminates
employment. For purposes of this Program, an Officer's spouse shall be the
person to whom the Officer was legally married to on the date of the Officer's
termination of employment ("Spouse") regardless of whether the Officer's
employment was terminated by death, disability, retirement or other termination
of employment.

This Program is intended to be an adjunct to the respective Health Plan of the
Company that provides coverage for the Officer and is not intended to be a
"Plan" as described in the Employee Retirement Income Security Act of 1974, as
amended ("ERISA.") The benefits offered under this Program can be provided
through either insurance contracts, self-insured arrangements or any combination
of insurance and self-insurance.

Officer's Coverage During Active Employment

As long as the Officer is employed by the Company, the Officer, his or her
Spouse and eligible dependents shall be entitled to receive Health Plan benefits
upon such terms and conditions and pursuant to such Health Plan that covers
executive officers at the Officer's location of employment.

Officer's Coverage After Termination of Active Employment

The type of Health Plan coverage for the Officer after the Officer terminates
active employment shall be dependent upon such Officer's eligibility for
Medicare coverage. If the Officer is eligible for Medicare coverage, the Company
shall provide the Officer with a choice of either (1) a "high-option" Medicare
supplemental plan that includes prescription drug coverage, or (2) remaining in
the Company's Health Plan (as such Plan may be amended from time to time) that
covered the Officer immediately prior to his or her retirement. This coverage
shall be for the duration of the Officer's life notwithstanding the earlier
termination of the Health Plan; provided, however, that should the Officer
select coverage under the Health Plan and such Plan coverage is terminated or
significantly modified, then the Officer shall be entitled to elect to receive a
"high-option" Medicare supplemental plan that includes prescription drug
coverage.

If the Officer is not entitled to receive Medicare coverage at the time of his
or her retirement, then the Officer shall continue to participate in the
Company's Health Plan (as such Plan may be amended from time to time) that
covered the Officer immediately prior to his or her retirement until the Officer
is eligible for Medicare coverage. Once the Officer is entitled to receive
Medicare coverage, the Company shall provide the Officer with a choice of either
(1) a "high-option" Medicare supplemental plan that includes prescription drug
coverage, or (2) remaining in the Company's Health Plan (as such Plan may be
amended from time to time) that covered the Officer immediately prior to his or
her retirement. This coverage shall be for the duration of the Officer's life
notwithstanding the earlier termination of the Health Plan; provided, however,
that should the Officer select coverage under the Health Plan and such Plan
coverage is terminated or significantly modified, then the Officer shall be
entitled to elect to receive a "high-option" Medicare supplemental plan that
includes prescription drug coverage.

Spousal and Dependents' Coverage After Termination of the Officer's Active
Employment

Spouses and eligible dependents shall receive the same coverage as provided to
the Officer for life in the instance of the Spouse, and with respect to a
dependent, until such dependent would be ineligible to receive coverage under
the Company's Health Plan because of age or change in dependent status.

If the Officer's Spouse or dependents are not eligible for Medicare coverage,
then the Spouse or the dependents shall continue to participate in the Company's
Health Plan (as such Plan may be amended from time to time) that covered the
Spouse or dependents immediately prior to the Officer's retirement.

Once the Officer's Spouse or dependents become eligible for Medicare coverage,
then the Officer's Spouse and / or dependents will be offered a "high-option"
Medicare supplemental plan that includes prescription drug coverage; provided,
however, that to the extent possible, the Officer and the Officer's Spouse and
dependents shall participate in the same arrangement (Company Health Plan or
"high-option" Medicare supplemental plan.)