Exhibit 10.57


 


BIOVAIL CORPORATION


 


DEFERRED SHARE UNIT PLAN 

FOR CANADIAN DIRECTORS


 


Approved: 
May 3, 2005

Amended:  March 14,
2007


 

















 


TABLE OF CONTENTS


 


ARTICLE 1


PREAMBLE AND DEFINITIONS


 


	
  1.1

  	
  Title

  	
  3

  
	
  1.2

  	
  Purpose
  of the Plan

  	
  3

  
	
  1.3

  	
  Definitions

  	
  3

  
	
  1.4

  	
  Schedules

  	
  5

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2

  INTERPRETATION

  	
   

  
	
   

  	
   

  	
   

  
	
  2.1

  	
  Governing
  Law

  	
  5

  
	
  2.2

  	
  Severability

  	
  5

  
	
  2.3

  	
  References

  	
  5

  
	
   

  	
   

  	
   

  
	
  ARTICLE 3

  ELIGIBILITY

  	
   

  
	
   

  	
   

  	
   

  
	
  3.1

  	
  Establishment

  	
  5

  
	
  3.2

  	
  Automatic
  Participation for Directors

  	
  5

  
	
  3.3

  	
  No
  Additional Rights

  	
  5

  
	
   

  	
   

  	
   

  
	
  ARTICLE 4

  DEFERRED SHARE UNIT GRANTS
  AND ACCOUNTS

  	
   

  
	
   

  	
   

  	
   

  
	
  4.1

  	
  Annual
  Grants

  	
  6

  
	
  4.2

  	
  Election
  to Participate

  	
  6

  
	
  4.3

  	
  Effect of
  Notice

  	
  6

  
	
  4.4

  	
  Termination
  or Change to Election

  	
  6

  
	
  4.5

  	
  Timing
  and Recording of Credits

  	
  7

  
	
  4.6

  	
  Calculation
  of Number of Deferred Share Units

  	
  7

  
	
  4.7

  	
  Deferred
  Share Unit Account

  	
  7

  
	
  4.8

  	
  Dividends

  	
  7

  
	
  4.9

  	
  Adjustments

  	
  7

  
	
  4.10

  	
  No Price
  Adjustment

  	
  8

  
	
   

  	
   

  	
   

  
	
  ARTICLE 5

  REDEMPTION ON RETIREMENT OR
  DEATH

  	
   

  
	
   

  	
   

  	
   

  
	
  5.1

  	
  Redemption

  	
  8

  
	
  5.2

  	
  Payment
  of Redeemed Amount

  	
  8

  
	
   

  	
   

  	
   

  
	
  ARTICLE 6

  SHAREHOLDER RIGHTS

  	
   

  
	
   

  	
   

  	
   

  
	
  6.1

  	
  No
  Shareholder Rights

  	
  9

  
	
   

  	
   

  	
   

  
	
  ARTICLE 7

  ADMINISTRATION

  	
   

  
	
   

  	
   

  	
   

  
	
  7.1

  	
  Unfunded
  Obligation

  	
  9

  
	
  7.2

  	
  Committee
  to Administer Plan

  	
  9

  



 

















 


	
  7.3

  	
  Amendment
  and Termination

  	
  9

  
	
  7.4

  	
  Costs of
  Administration

  	
  9

  
	
   

  	
   

  	
   

  
	
  ARTICLE 8

  ASSIGNMENT

  	
   

  
	
   

  	
   

  	
   

  
	
  8.1

  	
  Assignment

  	
  9

  



 

















 


BIOVAIL CORPORATION


 


DIRECTORS’ DEFERRED SHARE UNIT PLAN


 


ARTICLE 1


PREAMBLE AND DEFINITIONS


 


1.1                                                                               Title.


 


The Plan herein described shall be called the “Directors’
Deferred Share Unit Plan”, and is referred to herein as the “Plan”.


 


1.2                                                                               Purpose of the Plan.


 


The purpose of the Plan is to promote a greater
alignment of interests between the directors of the Corporation who participate
in the Plan and the shareholders of the Corporation.


 


1.3                                                                               Definitions.


 


“Annual Board
Retainer” means the annual cash retainer payable by the Corporation
to a Director in a financial year for service on the Board and any committee of
the Board, but excludes other retainers and fees (including, without
limitation, any Chair Retainer and Meeting Fees).


 


“Annual Chair
Retainer” means the annual retainer paid by the Corporation to a
Director in a financial year for acting as the chair of the Board or of one or
more committees of the Board, but excludes other retainers and fees (including,
without limitation, the Annual Board Retainer and Meeting Fees).


 


“Annual DSU
Allocation” means such amount as may from time to time be
determined by resolution of the Directors of the Corporation.


 


“Annual Payment Date”
has the meaning ascribed thereto in Section 4.1.


 


“Board”
means the board of directors of the Corporation.


 


“Corporation”
means Biovail Corporation and any successor corporation whether by
amalgamation, merger or otherwise.


 


“Deferred Share Unit”
means a bookkeeping entry, the value of which on any particular date shall be
equal to the Market Price.


 


“Deferred Share Unit
Account” has the meaning ascribed thereto in Section 4.7.


 


“Director”
means a director of the Corporation other than a director who is a full-time
employee of the Corporation.


 

















 


“Election Notice”
has the meaning ascribed thereto in Section 4.2.


 


“Market Price”
means the market price of a Share and shall be the VWAP on the TSX, or the NYSE
or other stock exchange where the majority of the trading volume and value of
the Shares occurs, for the five trading days immediately preceding such date,
except that with respect to Members subject to U.S. taxation, to the extent
required by Section 409A of the Code, “Market Price” of a Share means the
greater of (i) the Market Price as calculated above or (ii) the VWAP
on the TSX, or the NYSE or other stock exchange where the majority of the
trading volume and value of the Shares occurs, for the single trading day
immediately preceding such date. The Market Price so determined may be in
Canadian dollars or U.S. dollars. As a result, the Market Price of a Share in
respect of a Deferred Share Unit that will be paid in Canadian dollars shall be
either (a) such Market Price as determined above, if in Canadian dollars,
or (b) such Market Price as determined above converted into Canadian
dollars at the closing rate of exchange of the Bank of Canada on the Date of
Grant, if in U.S. dollars. Similarly, the Market Price of a of a Share in
respect of a Deferred Share Unit that will be paid in U.S. dollars shall be
either (a) such Market Price as determined above, if in U.S. dollars, or (b) such
Market Price as determined above converted into U.S. dollars at the closing
rate of exchange of the Bank of Canada on the Date of Grant, if in Canadian
dollars. If on the such date there is not a closing rate of exchange of the
Bank of Canada, then the Market Price of a Share shall be determined as
provided above on the first day immediately preceding such date for which there
was such a closing rate of exchange. The Market Price of a Share shall be
rounded up to the nearest whole cent.


 


“Meeting Fees”
means the fees paid by the Corporation to a Director in a financial year for
attendance at meetings of the Board and its committees.


 


“Member”
means a Director who becomes a participant in the Plan in accordance with Article 4.


 


“Member’s
Termination Date” has the meaning ascribed thereto in Section 5.1.


 


“NYSE” means the
New York Stock Exchange.


 


“Payment Date”
has the meaning ascribed thereto in Section 4.1.


 


“Shares”
means the common shares of the Corporation and such other shares as may be
substituted therefor as a result of amendments to the articles of the
Corporation, a reorganization of the Corporation or otherwise.


 


“Trading Day”
means any date on which the TSX is open for the trading of the Shares.


 


“TSX”
means the Toronto Stock Exchange.


 


“VWAP”
means the volume weighted average trading price of the Shares, calculated by
dividing the total value by the total volume of Shares traded for the relevant
period.


 


4

















 


1.4                                                                               Schedules.


 


Schedule A – Election Notice

Schedule B – Redemption Notice


 


ARTICLE 2


INTERPRETATION


 


2.1                                                                               Governing Law.


 


The Plan shall be governed and interpreted in
accordance with the laws of the Province of Ontario and the federal laws in
Canada applicable therein.


 


2.2                                                                               Severability.


 


If any provision of the Plan or part hereof is
determined to be void or unenforceable in whole or in part, such determination
shall not affect the validity or enforcement of any other provision or
part thereof.


 


2.3                                                                               References.


 


Headings wherever used herein are for reference
purposes only and do not limit or extend the meaning of the provisions herein.
In the Plan, references to the singular shall include the plural and vice
versa, as the context shall require.


 


ARTICLE 3


ELIGIBILITY


 


3.1                                                                               Establishment.


 


Subject to obtaining Board approval, the Plan shall be
effective as at May 4 , 2005.


 


3.2                                                                               Automatic Participation for Directors.


 


Each Director in office at the effective date of
establishment of the Plan shall, without further formality, become a Member in
the Plan. Each person who becomes a Director at any time subsequent to the
effective date of establishment of the Plan shall thereupon, without further or
other formality, become a Member of the Plan.


 


3.3                                                                               No Additional Rights.


 


Nothing herein contained shall be deemed to give any
person the right to be retained as a Director of the Corporation or as an
employee of the Corporation.


 


5

















 


ARTICLE 4


DEFERRED SHARE UNIT GRANTS AND ACCOUNTS


 


4.1                                                                               Annual Grants.


 


Each year, as soon as practicable following the
election or appointment of any Director, (each of which is referred to as a “Payment
Date”, annually, the “Annual Payment Date”), such Director shall be credited,
without further or other formality, with the respective number of Deferred
Share Units as may be determined by dividing the Annual DSU Allocation by
the Market Price at the Annual Payment Date in question, subject, if such
person is not elected by the shareholders at the annual general meeting, to
proration according to the number of days such person was a Director of the
Corporation during such twelve month period or as the Board may otherwise
determine.


 


4.2                                                                               Election to Participate.


 


Each Director shall have, subject to the conditions stated
herein, the right to elect at any time and from time to time in accordance with
this Section 4.2, to be credited with Deferred Share Units in lieu of all
or any part of the Annual Board Retainer and all or any part of any
Annual Chair Retainer otherwise payable to such Director in cash (commencing
with amounts payable after the effective date of the Plan). No such election
shall be effective unless and until the Director in question shall have filed a
notice of election in the form of Schedule A hereto (the “Election
Notice”) with the Corporation’s Chief Financial Officer, which notice, subject
as hereinafter provided, may be filed at any time.


 


4.3                                                                               Effect of Notice.


 


A duly filed Election Notice shall be binding upon the
Director who filed it, and upon the Corporation, unless and until such Director
has filed a subsequent Election Notice to terminate or change his or her
election and such subsequent Election Notice has become effective in accordance
with the Plan.


 


4.4                                                                               Termination or Change to Election.


 


(a)                                  Each
Member is entitled to terminate or change his or her election specified in any
Election Notice filed with the Corporation by filing with the Chief Financial
Officer of the Corporation a subsequent Election Notice, provided that no
Member shall be entitled to file more than one Election Notice in any calendar
year unless specifically authorized by resolution of the Directors.


 


(b)                                 To
be effective with respect to all or any part of any annual payment on
account of the Annual Board Retainer or the Annual Chair Retainer, a Notice of
Election must be filed at least 21 days prior to the annual payment date in
question.


 


(c)                                  For
greater certainty, subject to the foregoing limitation, a Member who has filed
a subsequent Election Notice to terminate an earlier election by the Member
may thereafter again elect in accordance with Section 4.2.


 


6














 


4.5                                                                               Timing and Recording of Credits.


 


(a)                                  Each
Member who has filed an Election Notice in accordance with Section 4.2 shall be
credited with Deferred Share Units as hereinafter provided in respect of the
Annual Board Retainer or Annual Chair Retainer, as applicable, annually in
arrears immediately following the annual general meeting of shareholders, while
such Election Notice remains in effect.


 


(b)                                 Deferred
Share Units credited to a Member in accordance with any provision of this
agreement shall be recorded by the Corporation in the Member’s Deferred Share
Unit Account (as defined below) as soon as reasonably practicable thereafter.


 


4.6                                                                               Calculation of Number of Deferred Share Units.


 


The number of Deferred Share Units credited at any
particular time with respect to any amount in respect of which a Member shall
have elected pursuant to Section 4.2 will be calculated by dividing such amount
by the Market Price on the relevant annual payment date for such amount.


 


4.7                                                                               Deferred Share Unit Account.


 


An account, to be known as a “Deferred Share Unit
Account”, shall be maintained by the Corporation for each Member, in which
shall be recorded all Deferred Share Units credited to a Member from time to
time.


 


4.8                                                                               Dividends.


 


Whenever cash dividends are paid on the Shares,
additional Deferred Share Units will be credited to the Member’s Deferred Share
Unit Account. The number of such additional Deferred Share Units will be
calculated by dividing (i) the dividends that would have been paid to such
Member if the Deferred Share Units in the Member’s Deferred Share Unit Account
on the relevant dividend record date had been Shares, by (ii) the closing price
of the Shares on the TSX, the NYSE or other stock exchange where the majority
of the trading volume and value of the Shares occurs on the date of payment of
such dividend. If on such date of payment there is not a closing price of the
Shares on any such exchange, then the opening price of the Shares on the TSX,
the NYSE or other stock exchange where the majority of the trading volume and
value of the Shares occurs on the first available date thereafter will be used
for purposes of (ii) above.


 


4.9                                                                               Adjustments.


 


In the event of any stock dividend, stock split,
combination or exchange of Shares, merger, consolidation, spin-off or other
distribution (other than normal cash dividends) of the Corporation’s assets to
shareholders, or any other changes affecting the Shares, such proportionate
adjustments shall be made with respect to the number of Deferred Share Units
outstanding under the Plan to reflect such change or changes.


 


7

















 


4.10                                                                        No Price Adjustment.


 


For greater certainty, no additional Deferred Share
Units will be granted to such Member to compensate for a downward fluctuation
in the price of the Shares, nor will any other form of benefit be conferred
upon, or in respect of, a Member for such purpose.


 


ARTICLE 5


REDEMPTION ON RETIREMENT OR DEATH


 


5.1                                                                               Redemption.


 


Subject to Section 5.2, the value (determined in
accordance with Section 5.2) of the Deferred Share Units credited to a Member’s
Deferred Share Unit Account shall be redeemable by the Member (or, where the
Member has died, his or her estate) at the Member’s option (or after the Member’s
death, at the option of his legal representative) following the event,
including death, causing the Member to no longer be a Director or an employee
of the Corporation or a person related to the Corporation for the purposes of
the Income Tax Act (Canada) (the “Member’s
Termination Date”). The value of the Deferred Share Units shall be redeemed by
filing a written notice of redemption in the form of Schedule B hereto with the
Chief Financial Officer of the Corporation, specifying: (i) either one or two
redemption dates; and (ii) the percentage of Deferred Share Units held by the
Member to be redeemed on each such redemption date (which when added together
shall equal 100%). Each redemption date specified in the notice of redemption
shall occur during the period commencing at least five (5) business days
following the date on which such notice is filed with the Chief Financial
Officer of the Corporation and ending not later than December 15 of the first
calendar year commencing after the Member’s Termination Date. If no notice of
redemption has been filed by December 15 of the first calendar year after the
Member’s Termination Date, December 15 of the first calendar year after the
Member’s Termination Date will be deemed to be the redemption date for all of
the Member’s Deferred Share Units.


 


5.2                                                                               Payment of Redeemed Amount.


 


Subject to applicable income tax and other
withholdings as required by law, the value of the Deferred Share Units redeemed
by or in respect of a Member shall be paid to the Member (or if the Member has
died, to his or her estate, as the case may be) in the form of one or two lump
sum cash payments, as applicable in accordance with the Member’s notice of
redemption, less the amounts required to be withheld by applicable law, as soon
as practicable after the applicable redemption date, provided that in any event
such payment date shall be no later than December 31 of the first calendar year
commencing after the Member’s Termination Date. The amount of the cash payment
(or payments, as the case may be) to be paid to the Member on the redemption
date (or redemption dates, as the case may be), before such withholdings, shall
be determined by multiplying the number of Deferred Share Units to be redeemed
on a redemption date by the Market Price on such redemption date.


 


8

















 


ARTICLE 6


SHAREHOLDER RIGHTS


 


6.1                                                                               No Shareholder Rights.


 


Deferred Share Units are not Shares and will not
entitle a Member to any shareholder rights, including, without limitation,
voting rights, dividend entitlement or rights on liquidation.


 


ARTICLE 7


ADMINISTRATION


 


7.1                                                                               Unfunded Obligation.


 


Unless otherwise determined by the Board, the Plan
shall remain an unfunded obligation of the Corporation.


 


7.2                                                                               Committee to Administer Plan.


 


The Plan shall be administered by the Board with the
advice of the Compensation Committee of the Board or such other committee of
the Board as the Board may, from time to time, determine to be appropriate.


 


7.3                                                                               Amendment and Termination.


 


The Plan may be amended or terminated at any time by
the Board, except as to rights already accrued hereunder by the Members.
Notwithstanding the foregoing, any amendment or termination of the Plan shall
be such that the Plan continuously meets the requirements of paragraph 6801(d) of
the Regulations under the Income Tax Act
(Canada) or any successor provision thereto.


 


7.4                                                                               Costs of Administration.


 


The Corporation will be responsible for all costs
relating to the administration of the Plan.


 


ARTICLE 8


ASSIGNMENT


 


8.1                                                                               Assignment.


 


A Deferred Share Unit is personal to the Member and is
non-assignable. No Deferred Share Unit granted hereunder shall be pledged,
hypothecated, charged, transferred, assigned or otherwise encumbered or
disposed of by the Member, whether voluntarily or by operation of law, otherwise
than by testate succession or the laws of descent and distribution, and any
attempt to do so will cause such Deferred Share Unit to be null and void.
During the lifetime of the Member, a Deferred Share Unit shall be redeemable
only by the Member and, upon the


 


9

















 


death of a Member, the person to whom the
rights shall have passed by testate succession or by the laws of descent and
distribution may redeem any Deferred Share Units in accordance with the provisions
of Article 5.


 


10

















 


Schedule A to
Deferred Share Unit Plan 

for Directors of Biovail Corporation (the “Plan”)


 


ELECTION NOTICE


 


Please complete one of Section 1 (Election
Notice), Section 2 (Election to Change Participation) or Section 3 (Election to
Terminate an Earlier Election), and return a signed and dated copy of this
Schedule A to the Chief Financial Officer of Biovail Corporation (the “Corporation”).


 


1.                                                                                      ELECTION NOTICE


 


I hereby elect to participate in the Plan on the
following basis, commencing with the next annual payment date following the
date hereof, unless and until the election is terminated or changed in
accordance with a subsequently filed Election Notice, namely, to receive in
Deferred Stock Units        % (please insert applicable percentage) of
the amount otherwise payable to me in cash in respect of my Annual Board
Retainer and        % (please insert applicable percentage) of
the amount otherwise payable to me in cash in respect of my Annual Chair
Retainer.


 


2.                                                                                      ELECTION TO CHANGE PARTICIPATION


 


I hereby elect, notwithstanding any previous election
in the form of this Election Notice, to change my election with respect to my
participation in the Plan, commencing with the next annual payment following
the date hereof, unless and until the election is terminated or changed in
accordance with a subsequently filed Election Notice, namely, so as to receive
in Deferred Stock Units        % (please insert applicable percentage) of
the amount otherwise payable to me in cash in respect of my Annual Board
Retainer and        % (please insert applicable percentage) of
the amount otherwise payable to me in cash in respect of my Annual Chair
Retainer.


 


3.                                                                                      ELECTION TO TERMINATE AN ELECTION


 


I hereby elect, by marking the box below this
paragraph with an “X”, to terminate my election under Section 4.2 of the Plan
and to receive my Annual Board Retainer and my Annual Chair Retainer in cash
commencing with the next annual payment following the date hereof.


 


YES, I
WISH TO TERMINATE MY MOST RECENT ELECTION UNDER SECTION 4.2 OF THE PLAN.


 


I confirm that:


 


1.                                                                                       I
have received and reviewed a copy of the terms of the Plan and agreed to be
bound by such terms.


 

















 


2.                                                                                       I
understand that I will not be able to cause the Corporation to redeem Deferred
Share Units granted under the Plan (“DSUs”) until I am no longer a Director or
an employee of the Corporation.


 


3.                                                                                       I
recognize that when DSUs credited pursuant to an election made under Section 1
or 2 of this Election Notice are redeemed in accordance with the terms of the
Plan after I am no longer a Director or employee of the Corporation, income tax
and other withholdings as required will arise at that time that will be my
obligations (and not the Corporation’s, except as required by law). Upon
redemption of the DSUs, the Corporation will make all appropriate withholdings
as required by law at that time.


 


4.                                                                                       The
value of DSUs are based on the value of the common shares of the Corporation
and therefore are not guaranteed.


 


5.                                                                                       No
funds will be set aside to guarantee the payment of DSUs. Future payment of
DSUs will remain an unfunded liability recorded on the books of the
Corporation.


 


6.                                                                                       I
acknowledge and agree that, as described in greater detail in the Plan, I am
not permitted to assign, pledge, charge or otherwise encumber the DSUs granted
to me under the Plan.


 


7.                                                                                       An
election filed pursuant to Section 2 or 3 of this Schedule A is required to be
filed with the Chief Financial Officer of the Corporation not later than thirty
(30) days prior to the end of a calendar year in order to be effective with
respect to any amounts payable on and after the last day of such calendar year
on account of my Annual Board Retainer or my Annual Chair Retainer.


 


The foregoing is only a brief outline of certain key
provisions of the Plan. For more complete information, reference should be made
to the Plan in its entirety.


 


	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
    Date

  	
   

  	
    (Signature of Director)

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
    (Name of Director)

  



 


2

















 


Schedule B to
Deferred Share Unit Plan

for Directors of Biovail Corporation (the “Plan”)


 


REDEMPTION
NOTICE


 


I hereby advise Biovail Corporation (the “Corporation”)
that I wish to redeem all the Deferred Share Units credited to my account under
the Plan on the following redemption date or dates, which in each case shall be
at least five (5) business days following the date on which this notice is
filed with the Corporation but no later than December 15 of the first calendar
year commencing after the year in which the member ceased to be a director or
an employee of the Corporation:


 




	
   

  	
  Amount of Deferred Share Units

  (expressed as a percentage

  totalling 100%)

  	
   

  	
  Redemption Date

  
	
  1.

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
   

  	
   

  






 


 


	
   

  	
   

  	
   

  	
   

  
	
   

  	
    Date

  	
   

  	
    (Signature of Member)

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
    (Name of Member)

  



 


If this Redemption Notice is
signed by a beneficiary or legal representative, documents providing the
authority of such signature must accompany this Redemption Notice.