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|Exhibit 14
Pharmos CorporationCode of Ethics and Business ConductEffectiveFebruary 2004
This Code of Ethics and Business Conduct applies to all employees, officers and directors of Pharmos
Corporation and its subsidiaries (Pharmos or the Company). This Code sets
forth general principles. Certain of the principles set forth herein are further addressed in specific
policies and procedures set forth in Pharmos Supervisory Procedures and Compliance Manual and
in the whistleblower policy and procedures previously adopted by Pharmos. This Code is
not intended to limit these policies and procedures.
1.             Compliance with laws, rules
and regulations
We expect you to comply with the letter and spirit of all applicable laws, rules and regulations. Illegal
conduct can never be in the Companys best interests. No employee, officer or director will
enter into any transaction on the Companys behalf that he or she knows or should know would
violate any law or regulation, nor should any person assist any third party in violating any law
or regulation, whether or not such assistance in itself is a violation. The laws and regulations
with which each department and location of Pharmos must comply will vary. Each employee, officer
and director is responsible for knowing the specific laws and regulations that affect him or her.
If you have any questions about your obligations under any applicable law, you should seek advice
from your supervisor, or the Chief Executive Officer or Chief Financial Officer, or Pharmos
outside counsel.
The following is a non-exclusive list of laws to which all employees, officers and directors of Pharmos
must adhere:
Accurate Books and Records
All funds, other assets and transactions of the Company must be properly documented, fully accounted
for and promptly and accurately recorded in the Companys books and records in conformity with
accounting principles generally accepted in the United States of America (GAAP), and in the case
of Pharmos Ltd., the Companys subsidiary located in Israel, in conformity with accounting principles
generally accepted in the State of Israel. The Company will adhere to the intent of the accounting
and disclosure requirements established by the U.S. Securities and Exchange Commission. No employees,
officers or directors may engage in the making of false or fictitious entries in Company books or
records (including employee timesheets) with respect to Company transactions or the disposition of
Company assets.
Insider Trading and Securities Law Compliance
An employee, officer or director may not, directly or indirectly, disclose material non-public Company
information to a third party. Further, an employee may not purchase or sell (or advise someone else
to purchase or sell) the Companys stock based on such information until after the information
has been publicly disseminated. Material information is information which has the potential
to affect the market price of Company stock, and/or which a reasonable
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|investor would consider important in determining whether to buy or sell the Companys stock. Material
information may include, but is not limited to, annual and quarterly earnings results, projections
of future earnings or losses, results of clinical trials or other important research & development,
changes in management and significant acquisitions or dispositions. Either positive or negative information
may be considered material. When in doubt, employees should contact Pharmos Chief Financial
Officer and/or outside counsel for guidance.
Political Contributions
Employees shall not use Company funds for contributions of any kind to any political party or committee
in the United States or any foreign country, or to any candidate for or holder of any office of any
government, national, state or local.
Workplace Health and Safety Laws
The Company will conduct its operations in compliance with all applicable environmental and health
and safety laws and regulations, in keeping with good corporate citizenship and with a positive commitment
to the protection of the natural and workplace environments. Workplace health and safety laws will
vary among departments and locations. You are responsible for knowing the specific laws and regulations
that affect your job and location.
2.             Conflicts of Interest
A conflict of interest occurs when an individuals personal interest interferes or
appears to interfere with the interests of Pharmos. We expect you to exercise care to ensure that
conflicts of interest are avoided. This Code establishes only the framework within which Pharmos
wishes the business to operate. The purpose of the guidelines set forth in this Code is to provide
general direction so that employees, officers and directors can seek further clarification on issues
related to the subject of acceptable standards of operation. Please contact the Chief Executive Officer,
the Chief Financial Officer or outside counsel about conflicts of interest.
Private Investments, Co-investments and Outside Business Activities by Employees and Officers
Private
investments, co-investments and outside business activities may create conflicts of interest and
other complications for employees and officers. Therefore,
(a)  Without
the prior written consent of Pharmos, employees and officers may not:
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| | (i)   | make a co-investment with Pharmos;                               
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| |       |                                                                  
| | (ii)  | be engaged in any other business;                                
| |       |                                                                  
| | (iii) | be employed or compensated by any other person; or               
| |       |                                                                  
| | (iv)  | serve as an officer, partner or employee of another organization.

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|(b)  Prior to making such an investment or engaging in such outside business activity, an
employee or officer or director must to submit to his or her supervisor and to the Chief Executive

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|Officer or the Chief Financial Officer a memorandum describing in detail all aspects of the proposed
investment or proposed outside business activity. If the Chief Executive Officer or Chief Financial
Officer approves the proposed investment or outside business activity, the Chief Executive Officer
or Chief Financial Officer will notify the employee or officer in writing. Such approval may be given
subject to restrictions or qualifications and is revocable at any time.
(c)  If
an employee or officer has received approval to engage in outside activities, such person may not
imply that he or she is acting on behalf of, or as a representative of, Pharmos, and the person may
not use Pharmos offices, telephones, computer equipment or stationery for any purpose not directly
related to Pharmos business.
(d)  Employees
and officers should note that use of Pharmos telephones, computer equipment or stationery for
charitable or civic purposes or outside activity is only permitted with the express prior approval
of the Chief Executive Officer or Chief Financial Officer. Employees or officers may not offer Pharmos
services in lieu of cash donations to charitable or civic organizations.
(e)  Employees
and officers have an ongoing responsibility to report any change in status with respect to a previously
approved investment or outside activity.
(f)  Employees
and officers should consult the Chief Executive Officer or Chief Financial Officer if they are in
doubt as to whether an investment or outside business activity of any type is covered by this Code.
(g)  Although
these restrictions outlined above do not specifically cover our outside, non-employee directors,
such persons must also assure that no conflicts of interest arise in their relationship with Pharmos.
However, a non-employee director may be affiliated with a company with which we have a business relationship
(such as a supplier, an investor, or a licensee or customer), provided that the nature of such affiliation
and business relationship is disclosed to the Board and the Board approves such affiliation and business
relationship (with the interested director not participating in the vote).
Gifts and Gratuities
Employees,
officers and directors must not take, accept or receive directly or indirectly, from any person compensation
of any nature as a bonus, commission, fee gratuity or other consideration for business sought or
procured by such persons or Pharmos. In addition, such persons must not directly or indirectly give
anything of value, including gratuities, in excess of $100 per individual per year to any person
or entity. Employees, officers or directors must obtain the prior written approval of the Chief Executive
Officer or Chief Financial Officer before giving anything of value in any amount. Pharmos may maintain
a separate record of all such payments.
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|3.             Loans
Executive officers and directors may not obtain loans from the Company. Any loan to other employees
must be approved by an executive officer or by the Board.
4.              Corporate Opportunities
You owe a duty to the Company to advance the Companys legitimate business interests when the
opportunity to do so arises. You may not (i) take for yourself (or direct to a third party) any opportunity
that is discovered through the use of Company property, information or position and relates to any
line of business in which the Company engages (unless the Company has already been offered the opportunity
and turns it down), (ii) use Company information or position for personal gain or (iii) compete with
the Company.
5.              Protection and Proper Use
of Company Property
You must make reasonable efforts to safeguard Company property within your control from loss, theft
or unauthorized use. You may only use Company property for legitimate business purposes of the Company,
subject to the following:
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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        

| | a.             We may authorize an employee,
officer or director to use specific Company property as a perquisite element of his or
her compensation. Any such authorization for an executive officer or director must be given by the
Board or the Compensation Committee and disclosed as compensation to the extent required by SEC rules.
Any such authorization for any other employee must be given by an executive officer.
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| |                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | b.             The foregoing policy does
not preclude occasional personal use of the Companys electronic communications systems, provided
that such use: (i) does not interfere with the performance of your job or other duties to the Company,
(ii) does not diminish productivity and (iii) does not violate any specific policies of the Company
regarding use of its electronic communication systems.                        

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|6.              Confidentiality
You must maintain the confidentiality of any confidential information that you learn concerning Pharmos
and any other company with whom we have a business relationship, except when disclosure is authorized
or legally required. In general, a companys confidential information includes all non-public
information that might be of use to the companys competitors or harmful to the company or its
customers if disclosed.
7.              SEC Reporting and Public
Communications.
We strive to have full, fair, accurate, timely and understandable disclosure in all reports that
we file or submit to the SEC and in our other public communications. In furtherance of this objective,
we expect that all persons involved in the preparation or review of our SEC reports will (i) be familiar
with the disclosure controls and procedures that we have adopted as required by the Securities
Exchange Act of 1934, (ii) follow such procedures, and (iii) bring to the attention of our Chief
Financial Officer or our outside securities law counsel any material

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|deviations from such procedures. If you become aware of any credible information that would place in
doubt the accuracy in any material respect any of our SEC reports or other public disclosures, you
should bring such information to the attention of our Chief Financial Officer or our outside securities
law counsel. You may also bring the matter to the attention of the Audit Committee in the manner
described in Section 11 of this Code or in accordance with our whistleblower policy and
procedures.
8.              Books and Records
The Companys books and records must be prepared accurately and maintained properly in accordance
with the Companys records management policies and all applicable laws and regulations. No false
entries may be made in the Companys records for any reason. In no circumstances is it ever
appropriate for a Pharmos employee, officer or director to sign another persons name on any
document whatsoever. You must not accommodate any requests by any person to falsify signatures on
documents or other Pharmos records in any circumstances.
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|  | Generally, we expect that you will:                                                            
|- | -----------------------------------------------------------------------------------------------
|  |                                                                                                
| | not conceal any financial or bookkeeping irregularity;                                         
|  |                                                                                                
| | cooperate completely and forthrightly with the Companys internal and independent auditors; and
|  |                                                                                                
| | follow the Companys system of internal accounting controls.                                   

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|You may never destroy, alter, or conceal, with an improper purpose, any record or otherwise impede
any governmental proceeding of which you are aware.
9.              Fair Dealing
You should endeavor to deal fairly with our customers, competitors, employees, suppliers and others
with whom we have a business relationship. You should not take unfair advantage of anyone through
manipulation, concealment, abuse of privileged information, misrepresentation of material facts or
any other unfair-dealing practice.
10.            Reporting of Violations; Consequence of Violations
We expect that you will promptly report any circumstances that you believe in good faith may constitute
a violation of this Code or any other Company policy. We will not allow retaliation for reports made
hereunder in good faith.
You should report to the following persons:
a.              if you are a non-employee
director, you should report to the Board or the Audit Committee;
b.              if you are an officer, you
should report to the Chief Executive Officer or the Chief Financial Officer, the Board or the Audit
Committee or our outside counsel; and

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|c.              if you are a non-officer
employee, you should report to your supervisor, the Chief Executive Officer or the Chief Financial
Officer, our outside counsel or to the independent telephone hotline established in accordance with
our whistleblower policy and procedures.
Notwithstanding the foregoing, if you have any complaints or issues regarding accounting, internal
accounting controls or auditing matters or the accuracy of our SEC reports or other public communications
you may report directly to the Audit Committee. If you are not comfortable identifying yourself,
you may communicate with the Audit Committee anonymously using the procedures set forth in our whistleblower
policy and procedures.
We will investigate any reports of alleged violations of this Code. If the alleged violation involves
a director, an executive officer, or our principal accounting officer, or if it involves accounting,
internal accounting controls or auditing matters or the accuracy of our SEC reports or other public
communications, then the investigation will be supervised by the Audit Committee. In all other cases,
the investigation will be supervised by our outside counsel or such other person as the Chief Executive
Officer considers appropriate.
Violations of this Code may result in, among other actions, suspension of work duties, diminution of
responsibilities or demotion, termination of employment and removal as a director.
11.           Waivers
From time to time, we may waive some provisions of this Code. Waivers must be authorized as follows:
a.             for executive officers,
our principal accounting officer and directors, the waiver must be approved by the Board or the Audit
Committee (with any interested director not participating in the vote); and
b.             for other employees, the
waiver may be approved by any executive officer.
If we waive any provision of this Code for any executive officer or director, we will disclose such
waiver to the extent required by the rules of the SEC and the Nasdaq Stock Market.
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