STATES OR ANY POLITICAL
SUBDIVISION THEREOF MUST ALSO KNOW AND ABIDE BY THE SPECIFIC RULES AND
REGULATIONS COVERING RELATIONS WITH SUCH GOVERNMENTS AND THEIR AGENCIES.
C)
EMPLOYEES, OFFICERS AND DIRECTORS MAY NOT GIVE GIFTS TO CUSTOMERS
EXCEPT ITEMS OF NOMINAL VALUE, WHICH FIT THE LEGAL, NORMAL, AND CUSTOMARY
PATTERN OF BIOVAIL'S SALES EFFORTS FOR A PARTICULAR MARKET.
EXCEPTIONS TO THIS
POLICY CAN OCCUR IN INTERNATIONAL TRADES WHERE IT CAN BE LEGAL, CUSTOMARY, AND
APPROPRIATE BUSINESS PRACTICE TO EXCHANGE GIFTS WITH CUSTOMERS.
ONLY THE CEO
CAN AUTHORIZE THE GIVING, RECEIVING, OR EXCHANGING OF SUCH GIFTS.
ANY GIFTS
RECEIVED BY EMPLOYEES, OFFICERS OR DIRECTORS IN SUCH AN EXCHANGE MUST BE
REPORTED TO THE CEO FOR DETERMINATION AS TO THE DISPOSITION OF THE GIFTS.
D)
ENTERTAINMENT FOR ANY CUSTOMER MUST FIT REGULAR BUSINESS
PRACTICES.
THE PLACE AND TYPE OF ENTERTAINMENT AND THE MONEY SPENT MUST BE
REASONABLE AND APPROPRIATE.
5.
DEALING WITH PUBLIC OFFICIALS
Domestic and foreign laws and regulations require Biovail to be in contact with
public officials on a wide variety of matters.
Employees, officers and
directors who regularly make these contacts have special responsibilities for
upholding Biovail's good name.
The following standards relate to these special
responsibilities:
A)
ALL EMPLOYEES, OFFICERS AND DIRECTORS WHO CONTACT PUBLIC
OFFICIALS MUST BE FAMILIAR WITH LOBBYING LAWS AND PUBLIC DISCLOSURE
REQUIREMENTS, PARTICULARLY THOSE THAT APPLY TO REGISTRATIONS AND FILINGS.
B)
NO EMPLOYEE SHALL MAKE ANY FORM OF PAYMENT, DIRECT OR INDIRECT, TO
ANY PUBLIC OFFICIAL AS AN INDUCEMENT TO PROCURING OR KEEPING BUSINESS OR HAVING
A LAW OR REGULATION ENACTED, DEFEATED, OR VIOLATED.
THIS IS BRIBERY, PURE AND
SIMPLE.
IT WILL NOT BE TOLERATED.
It should be acknowledged that inherent in the current health-care regulatory
environment, the definition of "form of payment" may include seemingly trivial
gifts and/or favors (e.g. buying lunches, coffee, etc.).
C)
WHEN NOT PROHIBITED BY LAW, EMPLOYEES, OFFICERS AND DIRECTORS ARE
ALLOWED TO GIVE TO PUBLIC OFFICIALS GIFTS WHERE THE PRESENTATION AND ACCEPTANCE
OF GIFTS IS AN ESTABLISHED CUSTOM AND A NORMAL BUSINESS PRACTICE.
ALL SUCH
GIFTS SHALL BE OF REASONABLE VALUE AND THE PRESENTATION APPROVED IN ADVANCE BY
THE CEO.
MOREOVER, SUCH GIFTS MUST BE PRESENTED IN A MANNER THAT CLEARLY
IDENTIFIES BIOVAIL AND THE OCCASION THAT WARRANTS THE PRESENTATION.
D)
EMPLOYEES, OFFICERS AND DIRECTORS ARE ALSO ALLOWED TO GIVE PUBLIC
OFFICIALS GIFTS IN THE FORM OF PRODUCT MODELS AND PICTURES PROVIDED THE MODELS
AND PICTURES ARE PART OF BIOVAIL'S GENERAL MARKETING AND PUBLIC RELATIONS
PROGRAMS (EXCEPT AS NOTED IN CLAUSE (B) ABOVE).
E)
ON SPECIAL CEREMONIAL OCCASIONS, OFFICERS OF BIOVAIL MAY PUBLICLY
GIVE GIFTS OF MORE THAN NOMINAL VALUE TO PUBLIC INSTITUTIONS AND PUBLIC BODIES.
SUCH GIFTS CAN COMMEMORATE SPECIAL EVENTS OR MILESTONES IN BIOVAIL'S HISTORY.
These may be transmitted through public officials but the gifts are given to the
public institutions and public groups they represent, not to the officials
personally.
F)
FROM TIME TO TIME EMPLOYEES, OFFICERS AND DIRECTORS MAY
ENTERTAIN PUBLIC OFFICIALS, BUT ONLY UNDER THE FOLLOWING CONDITIONS:
I.
IT IS LEGAL AND PERMITTED