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                                                                    EXHIBIT 10.9

                       FORM OF WARRANT PURCHASE AGREEMENT
June __  , 2005

Ferris, Baker Watts, Incorporated
100 Light Street, 8th Floor
Baltimore, Maryland 21202

Re:    Harbor Acquisition Corporation
       ------------------------------

Gentlemen:

       This letter will confirm the agreement of the undersigned to purchase
warrants ("WARRANTS") of Harbor Acquisition Corporation ("COMPANY") included in
the units ("UNITS") being sold in the Company's initial public offering ("IPO")
upon the terms and conditions set forth herein. Each Unit is comprised of one
share of Common Stock and two Warrants. The shares of Common Stock and Warrants
will not be separately tradable until 90 days after the effective date of the
Company's IPO unless Ferris, Baker Watts, Incorporated ("FBW") informs the
Company of its decision to allow earlier separate trading.

       The undersigned agree that this letter agreement constitutes an
irrevocable order for the undersigned to purchase through FBW for the account or
accounts of the undersigned, within the ninety trading-day period commencing on
the date separate trading of the Warrants commences ("SEPARATION DATE"), as many
Warrants as are available for purchase at market prices not to exceed $0.70 per
Warrant, subject to a maximum Warrant purchase obligation equal to, in the
aggregate, 1,500,000 Warrants ("MAXIMUM WARRANT PURCHASE"). FBW agrees to fill
such order in such amounts and at such times as instructed by the undersigned
during the ninety-day trading period commencing on the Separation Date. FBW
further agrees that it will not charge the undersigned any fees and/or
commissions with respect to such purchase obligation.

       The undersigned may notify FBW that all or part of the Maximum Warrant
Purchase will be made by an affiliate of one or both of the undersigned (or
another person or entity introduced to FBW by an undersigned (a "DESIGNEE")) who
(or which) has an account at FBW and, in such event, FBW will make such purchase
on behalf of said affiliate or Designee; provided, however, that the undersigned
hereby agree to make payment of the purchase price of such purchase and to
fulfill the Maximum Warrant Purchase in the event and to the extent that the
affiliate or Designee fails to make such payment or such purchase., provided
further, that any person or entity that makes all or part of the Maximum Warrant
Purchase shall agree in writing to be bound by the terms of this letter.

       Each of the undersigned agrees that neither he nor any of his affiliates
or Designees shall sell or transfer the Warrants until after the consummation of
a merger, capital stock exchange, asset acquisition or other similar business
combination with an operating business and acknowledges that, at the option of
FBW, the certificates for such Warrants shall contain a legend indicating such
restriction on transferability.

                                    Very truly yours,

                                    --------------------------------------
                                        Robert J. Hanks

                                    --------------------------------------
                                        David A. R. DullumQuickLinks
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Exhibit 4.1  

Senior
Executive 

BIOVAIL CORPORATION  

EXECUTIVE EMPLOYMENT AGREEMENT  

THIS AGREEMENT made as of the 1st day of March, 2003. 

BETWEEN:  

Biovail Corporation

(hereinafter called the "Corporation") 

OF THE FIRST PART  

- and - 

Kenneth C. Cancellara

(hereinafter called the "Executive") 

OF THE SECOND PART  

        WHEREAS the Corporation, and the Executive wish to enter into this Employment Agreement which provides, among
other things, that the Executive devote substantially all his time and attention during normal business hours to the performance of his duties hereunder upon the terms and conditions hereinafter set
forth; 

        NOW THEREFORE IN CONSIDERATION of the mutual covenants and agreements contained herein, and for other good and valuable consideration, the
receipt and sufficiency whereof is hereby acknowledged, the parties hereto agree as follows. 

 
 

ARTICLE ONE—GENERAL DUTIES AND TERM    
    

Employment Services  

1.01    The
Corporation hereby engages the Executive to perform the services described in Schedule A attached hereto and the Executive agrees to provide such services on the terms and
conditions as herein provided. This Agreement supersedes all existing oral or written agreements between the Corporation and the Executive. 

General Duties and Obligations of Executive  

1.02    The
Executive shall: 

	(a)
	well
and faithfully serve the Corporation to the best of his ability; 

CONFIDENTIAL TREATMENT REQUESTED

CONFIDENTIAL TREATMENT REQUESTED: INFORMATION FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED IS OMITTED AND IS NOTED WITH "**".

AN UNREDACTED VERSION OF THIS DOCUMENT HAS BEEN FILED

SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

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	(b)
	acknowledges
that his employment by the Corporation shall, unless otherwise mutually agreed to in writing, be his only occupation and that he/she will devote substantially all his
working time and attention during normal business hours to the performance of his duties and the observing of all reasonable instructions given to the Executive;

	(c)
	shall
reasonably use his best efforts to promote the success of the business of the Corporation (the "Business") now or hereafter conducted by the Corporation; and

	(d)
	shall
not engage in any activity during normal working hours that would impair his ability to perform his duties or that will put the Executive in conflict with respect to such
duties. 

Term of Agreement  

1.03    This
Agreement shall continue in full force and effect indefinitely and until terminated by either the Executive or the Corporation pursuant to the terms hereof. 

 
 

ARTICLE TWO—TERMINATION AND RESIGNATION    
    

I    Termination by the Corporation    

A    Without Just Cause    

2.01 a)    During
the term of this Agreement, the Corporation may terminate the Executive's employment without just cause at any time upon the payment by the Corporation to the
Executive of an amount (the "Severance Payment") equal to 12 months' (the "Severance Period") base salary, and including the vesting during the Severance Period of any unvested options or the
payment of any other amounts or benefits. (For greater certainty and by way of example, if the Executive is terminated on January 1, the Executive would not be entitled to receive any further
grant of options but would be entitled to have vested during the ensuing Severance Period any previously granted but unvested options which would have otherwise vested during the Severance Period.)
The Executive shall be under no obligation to seek other employment or otherwise mitigate his lost employment during the Severance Period. The Executive shall be entitled to be considered in good
faith for a pro-rated bonus for the period of his employment during the calendar year when he is terminated without just cause. 

        During
the period consisting of the earlier of the duration of the Severance Period and the Executive's commencing alternate employment, the Executive shall continue to remain on the
Corporation's medical and dental plans (provided that such is allowed by the provider of such benefits; provided further that if the plan does not allow for such continuation, the Corporation will pay
to the Executive the value thereof). 

2.01 b)    The
Executive may terminate his employment with the Corporation, which termination shall be deemed to be a termination by the Corporation without just cause, entitling
Executive to receive the severance and other benefits set forth in Section 2.01 a) above, upon the occurrence of any of the following events: 

	(i)
	any
permanent assignment to the Executive of any duties which are materially inconsistent with the Executive's position as Senior Vice President and Chief Legal Officer of the
Corporation. A period longer than three months shall be deemed to be permanent for the purpose of this subparagraph;

	(ii)
	any
material and permanent reduction by the Corporation in the Executive's authority, responsibilities or status. A period longer than three months shall be deemed to be permanent
for the purpose of this subparagraph; 

2

 

	(iii)
	it
is agreed that upon the occurrence of any of the events referred to in Paragraph 2.01 (b)(i) and (ii) above, the Executive shall give written notice to the
Corporation of such event and the Corporation shall have thirty (30) days within which to rectify such alleged event; or

	(iv)
	any
requirement by the Corporation that Executive's place of employment be based more than fifty (50) kilometers from the perimeter of the Greater Toronto Area. 

2.01 c)    Change of Control    

        Upon
a Change of Control, the Corporation shall provide to the Executive, (a) the total Severance Payment of 24 months base and bonus within 30 days of the closing
of such Change in control transaction and, (b) any unvested options held by Executive shall have their vesting accelerated in full so as to become one hundred percent (100%) vested and
immediately exercisable in full as of the date of closing of such Change of Control transaction. The Executive shall have 12 months from the closing of the Change of Control transaction within
which to exercise such options. In addition, the Executive shall be entitled to a full vesting of all options due to be granted to the Executive during the twelve (12) months following the
public announcement of the Change of Control transaction, which options
shall be deemed to have been priced at the same price as those in the immediately preceding year. The vesting of these latter options shall vest immediately upon the closing of the Change of Control
transaction but shall be exercisable as to 33% on that date, 33% on the first anniversary of the closing of the Change of Control transaction and the remainder on the second anniversary of the closing
of the Change of Control transaction. Notwithstanding the staggered schedule for the exercise of the options described in the immediately preceding sentence, in the event that the Executive's
employment ceases prior to the second anniversary of the closing of the Change of Control transaction, all unexercised options shall be immediately exercisable by the Executive upon his cessation of
employment. The surviving Corporation may decide in its sole discretion whether to continue the Executive's employment with the Corporation in its sole discretion. In the event that the Executive is
terminated by, or resigns from, the surviving corporate entity, the Executive shall not be entitled to any further compensation. 

        For
the purposes of this Agreement, "Change of Control" means: 

	(i)
	the
lease, exchange, license, sale or other similar disposition of all or substantially all of the assets of the Corporation in one transaction or a series of related transactions and
Eugene Melnyk is no longer Chairman of the Corporation; or

	(ii)
	with
the approval of the stockholders of the Corporation, a merger, amalgamation, reorganization, plan of arrangement, consolidation or other similar transaction (hereinafter
collectively a "Merger"), in a single transaction or a series of related transactions, the result of which Merger is that the individuals or entities acquiring voting securities of the Corporation
pursuant to such Merger hold, directly or indirectly, more than 50% of the outstanding shares of the resultant Corporation and Eugene Melnyk is no longer Chairman of the Corporation; or

	(iii)
	the
acquisition of more than 50% of the voting securities of the Corporation by any person(s) or entity (other than Eugene Melnyk or any of his affiliates), pursuant to a tender
offer or similar transaction and Eugene Melnyk is no longer Chairman of the Corporation. 

B    With Just Cause    

2.02    The
Corporation may terminate the Executive's employment without notice and without any severance or other remuneration save for salary actually earned to the date of such
termination where the Executive's employment is terminated with just cause. Without limiting the generality of the foregoing, just cause shall be deemed to include the following: 

	(a)
	where
the Executive has been convicted of any criminal offence involving moral turpitude; 

3

 

	(b)
	upon
the Executive's commission of gross or continuing material negligence committed in the performance of his duties. Provided that the Executive shall first be given thirty days'
written notice to cure or rectify such gross or continuing negligence;

	(c)
	upon
the Executive's commission of serious or willful misconduct;

	(d)
	upon
the Executive's failure to comply in any material way with any of the provisions of this Agreement. Provided that the Executive shall first be given thirty days' written notice
to cure or rectify such failure to comply with the provisions of this Agreement;

	(e)
	upon
a breach of a material term in the Executive's Confidentiality Agreement following written notice thereof to the Executive (as hereinafter defined); or

	(f)
	for
any other reason that, at law, shall amount to just cause. 

C.    Other Causes for Termination    

2.03    In
addition to the above, the Executive's employment shall also be terminated without notice and without any severance or other remuneration upon: 

	(a)
	the
voluntary resignation or retirement of the Executive; or

	(b)
	illness,
disease, physical or mental incapacity which render the Executive generally incapable of performing his duties or unfit to advance or represent the good business name of the
Corporation on a daily basis for a period of twelve (12) consecutive months and within such twelve (12) months, the Executive fails to produce to the Corporation a medical opinion
indicating a reasonable time for the return of the Executive to the full-time assumption of his past duties and responsibilities. Nothing herein is intended to circumvent or abridge the
Corporation's short-term and long-term disability policies. 

II    Executive Resignation    

D.    Resignation    

2.04    In
the event that the Executive wishes to resign from the Corporation, the Executive agrees to provide to the Corporation sixty (60) days' prior written notice of such
intention to resign (the "Resignation Period") and the Corporation, may at its discretion, determine whether the Executive's resignation shall take effect on the date of such notice or at an earlier
time, in which latter case, the Corporation shall pay to the Executive, in a lump sum, to the end of the Resignation Period. And shall further continue to provide to the Executive all benefits
including the vesting of all options and the accrual of bonus during the Resignation Period. 

 
 

ARTICLE THREE—REMUNERATION    
    

Remuneration  

        3.01    A.    Salary.    For services to be rendered hereunder, the Executive shall receive an annual base
salary as set forth in Schedule B attached hereto. The Executive will be considered annually for increases in base salary in accordance with Corporation policy and subject to review and
approval by the Chief Executive Officer ("CEO") or the Compensation Committee of the Board, as appropriate. 

        B.    Bonus.    The Executive shall be eligible a bonus as more particularly described in Schedule B, hereto.
Any bonus is subject to the approval of Chairman of the Corporation. The Corporation retains the authority to review, grant, deny or revise any bonus in its sole discretion. The target level of such
bonus is set forth in Schedule B attached hereto. 

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Expenses  

3.02    The
Executive shall be reimbursed for reasonable out of pocket business expenses, including travel and entertainment expenses actually and properly incurred by the Executive in the
course of performing his services hereunder, upon furnishing to the Corporation reasonable supporting statements and vouchers provided that where, in any financial year, the Corporation has provided
to the Executive an approved budget, such expenses must not exceed the amount so budgeted without the prior written approval from the Corporation. 

Vacation  

3.03    The
Executive shall be entitled to paid vacation and vacation entitlement as more particularly described in Schedule B, hereto. 

Group Life and Health Benefits  

3.04    Group
Life and Health Benefits shall be provided to the Executive in accordance with the Corporation's Group Life and Health Benefits Plan and policies, a copy of which has been
provided to the Executive, as these apply to Senior Executives. 

Stock Option Program  

3.05    The
Executive shall be eligible to receive stock options as more particularly described in Schedule "B", hereto. 

 
 

ARTICLE FOUR—EXECUTIVE'S OBLIGATIONS    
    

Confidentiality  

4.01    The
Executive agrees to be bound by the terms of the confidentiality agreement (the "Confidentiality Agreement") dated the date hereof, which Confidentiality Agreement has been read,
understood and executed by the Executive and is attached hereto as Schedule C and which is incorporated by reference into this Agreement. 

Non-Competition  

4.02    The
Executive acknowledges that the Corporation currently conducts Business activities in North America (the "Territory"). The Executive further acknowledges that, in the future, the
Business activities are expected to substantially expand territorially. Accordingly, the Executive hereby agrees and covenants that he/she shall not during the term of this Agreement and for a period
of one (1) year thereafter, directly or in any manner whatsoever, including without limitation, either individually, in partnership, jointly or in conjunction with any other individual,
partnership, corporation, unincorporated organization, trust, joint venture, the Crown or any agency or instrumentality thereof of any juridical entity (a "Person"), in the Territory or in any other
regions or countries where the Corporation may be carrying on its business objects at the relevant time: 

	(a)
	carry
on, be engaged in, take part in or be a party to any undertaking, directly or indirectly; or

	(b)
	consult,
advise, render services to lend money, guarantee the debts or obligations of or permit the use of his name or any part thereof by any Person who carries on a business; 

which
actively competes directly with the Corporation's business objects or, could be judged to be causing or potentially be causing through competitive acts, material harm to the Corporation. 

        For
the purposes of this Section 4.02, as of the date of this Agreement, a Person shall be defined as Andrx Group, Elan Corporation, Ethypharm, Flamel Technologies, S.A., Forest
Laboratories Inc., 

5

 

Pfizer Inc.,
King Pharmaceuticals, Inc., GlaxoSmithKline, Reliant Pharmaceuticals, Inc. and any of their affiliates and subsidiaries and, in addition, shall include any
pharmaceutical entity with which the Corporation has a product(s) licensing agreement, any entity in which the Corporation has a minority equity interest and any entity with which the Corporation is
at the time actively considering a commercial relationship. 

        During
the continuance of his employment, the Executive shall not (other than solely as a holder of not more than three per cent (3%) of the issued and outstanding voting shares of any
public corporation or as a shareholder of the Corporation, without the written approval of the board of directors of the Corporation, directly or indirectly, either individually or in partnership or
in conjunction with any Person or Persons, firm, association, syndicate, company or corporation as principal, agent, director, manager, servant, shareholder or in any other manner whatsoever,) carry
on or be engaged in or be concerned with or interested in any business or vocation whatsoever which would be reasonably judged to be competitive to the Business or would impede the Executive in
performing his duties as outlined herein. 

Solicitation and Hiring  

4.03    The
Executive hereby covenants and agrees that he/she shall not during the term of this Agreement and for a period of eighteen (18) months thereafter, either directly or
indirectly, solicit or endeavour to solicit from the Corporation any of its employees, customers, or suppliers for the pharmaceutical compounds used by Biovail and shall not for a period of
18 months from the end of the term of this Agreement hire any of the foregoing on his own behalf or on behalf of any entity for which the Executive is hired or retained. 

Injunctive Relief  

4.04    The
Executive acknowledges and agrees that the agreements and covenants in this Article Four are essential to protect the business and goodwill of the Corporation and that a breach
by the Executive of the covenants in Sections 4.01, 4.02 and 4.03 hereof could result in irreparable harm to the Corporation for which the Corporation could not be adequately compensated in damages
and that, accordingly, the Corporation may have no adequate remedy at law if the Executive breaches such provisions. Consequently, if the Executive breaches any of such provisions, the Corporation
shall have, in addition to and not in lieu of, any other rights and remedies available to it under any law or in equity, the right to obtain injunctive relief to restrain any breach or threatened
breach thereof and to have such provisions specifically enforced by any court of competent jurisdiction. 

Severability of Covenants in Full or in Part  

4.05    The
parties acknowledge that the provisions of Article Four hereof (the "Restrictive Covenants") are reasonable and valid in geographic and temporal scope and in all other respects.
If any court of competent jurisdiction determines that any of the Restrictive Covenants or any part thereof, is or are invalid or unenforceable, the Executive and the Corporation agree that the
remainder of the Restrictive Covenants shall not be affected by the deemed invalid portions. If any court of competent jurisdiction determines that any of the Restrictive Covenants or any part thereof
is unenforceable because of the duration or geographical scope of such provision, the parties hereto agree that such court shall have the power to reduce the duration or scope of such provision, as
the case may be, and in its reduced form such provision shall then be enforceable. 

Assignment of IP  

4.06    The
Executive shall disclose to the Corporation any and all Intellectual Property (as defined in the Confidentiality Agreement) which he/she may make solely, jointly, or in common
with other employees during the term of his employment with the Corporation and which relates to the Business. Any 

6

 

Intellectual
Property coming within the scope of the Business made and/or developed by the Executive while in the employ of the Corporation, whether or not conceived or made during regular working
hours, and whether or not the Executive is specifically instructed to make or develop same, shall be for the benefit of the Corporation and shall be regarded as work made in the course of employment
for the purposes of the Copyright Act (Canada). The Executive shall assign, set over and transfer to the Corporation his entire right, title and
interest in and to any and all of the Intellectual Property and to all letters patent and applications for letters patent which may be, or may have been filed and/or issued by or to him or on his
behalf and the Executive agrees to execute and deliver to the Corporation any and all instruments necessary or desirable to accomplish the foregoing and, in addition, to do all lawful acts which may
be necessary or desirable to assist the Corporation to obtain and enforce protection of the Intellectual Property. To the extent of any rights Executive may have with respect to the Intellectual
Property which are not assignable, including but not limited to moral rights, the Executive hereby waives same. The Executive will execute and deliver to the Corporation or its successors and assigns,
such other and further assignments, instruments and documents as the Corporation from time to time reasonably may request for the purpose of establishing, evidencing, and enforcing or defending its
complete, exclusive, perpetual, and world-wide ownership of all rights, titles, and copyrights, in and to the Intellectual Property, and 

        Executive
constitutes and appoints the Corporation as agent and attorney-in-fact, with full power of substitution, to execute and deliver such assignments,
instruments, documents as Executive may fail to refuse to execute and deliver, this power and agency being coupled with an interest and being irrevocable. 

Standards of Business Conduct  

4.07    The
Executive acknowledges and agrees that he/she has read and understood and agrees to be bound by the Corporation's Standards of Business Conduct, which is attached hereto as
Schedule D. 

Human Resources Management  

4.08    The
Executive acknowledges receipt of the Human Resources Management System and agrees to be bound by all of the terms, policies and procedures contained therein. 

No Conflicting Obligations  

4.09    The
Executive warrants to the Corporation that: 

	(a)
	the
performance of the Executive's duties as an employee of the Corporation will not breach any agreement or other obligation to keep confidential the Confidential Information of any
third party; and

	(b)
	the
Executive is not bound by any agreement with or obligation to any third party that conflicts with the Executive's obligations as an employee of the Corporation. 

 
 

ARTICLE FIVE—INTERPRETATION AND ENFORCEMENT    
    

Sections and Headings  

5.01    The
parties further acknowledge that if any provision contained in this Agreement is determined to be invalid or unenforceable in whole or in part, such invalidity or
unenforceability shall attach only to such provision or part thereof and the remaining part of such provision and all other provisions hereof shall continue in full force and effect. 

5.02    The
division of this Agreement into Articles and Sections and the insertion of headings are for the convenience of reference only and shall not affect the construction or
interpretation of this Agreement. 

7

 

Number  

5.03    In
this Agreement words importing the singular number only shall include the plural and vice versa and words importing the masculine
gender shall include the feminine and neuter genders and vice versa. 

Entire Agreement  

5.04    This
Agreement and all the Schedules hereto constitute the entire Agreement between the parties with respect to the subject matter hereof and cancels and supersedes any prior
understandings and agreements between the parties with respect thereto. There are no representations, warranties, forms, conditions, undertakings or collateral Agreements, express, implied or
statutory between the parties other than as expressly set forth in this Agreement. 

Amendment and Waivers  

5.05    No
amendment to this Agreement shall be valid or binding unless set forth in writing and duly executed by both parties. No waiver of any breach of any term or provision of this
Agreement shall be effective or binding unless made in writing and signed by the party purporting to give the same and, unless otherwise provided in written waiver, shall be limited to the specific
breach waived. 

Governing Law  

5.06    This
Agreement shall be deemed to have been made in and shall be construed in accordance with the laws of The Province of Ontario and all legal proceedings contemplated in this
Agreement shall be brought in, and be governed by, the laws of The Province of Ontario, without regard to principles of conflicts of law. 

Notices  

5.07    Any
demand, notice or other communication (hereinafter in this section 5.07 referred to as a "Communication") to be made or given in connection with this Agreement shall be
made or given in writing and may be made or given by personal delivery or by registered mail addressed respectively to the recipients: 

	

To the Executive:	
 	
Kenneth C. Cancellara

**
	
To the Corporation:	
 	

7150 Mississauga Road

Mississauga, Ontario

L5N 8M5
	

 	
 	

Attn: Chief Executive Officer

or
such other address or individual as may be designed by notice by either party to the other. Any communication made or given by personal delivery shall be conclusively deemed to have been given on
the day of the actual delivery thereof and, if made or given by registered mail, on the third business day following the deposit thereof in the mail. If the party giving any Communication knows or
ought reasonably to know of any difficulties with the postal system which might affect the delivery of the mail, any such Communication shall not be mailed but shall be made or given by personal
delivery. 

Benefit of Agreement  

5.08    This Agreement shall enure to the benefit of and be binding upon the parties hereto and their respective heirs, executors, legal
personal representatives, successors and assigns.    

8

 

Assignment  

5.09    The Executive may not assign his or its rights or obligations under this Agreement without the prior written consent of the
Corporation which consent may be unreasonably withheld. The Corporation may unilaterally assign this agreement to an affiliate without consent but on notice to the Executive.    

Execution of Agreement  

5.10    The Executive acknowledges that he/she has executed this Agreement freely; that he/she has reviewed his Agreement thoroughly; that
he/she agrees with its contents; that he/she has been given the opportunity to obtain the benefit of independent legal advice; and that the terms herein are reasonable for the fair protection of both
the Executive and the Corporation.    

        IN W1TNESS WHEREOF the parties have executed this Agreement on the 20th day of May 2003 at Mississauga. 

	 	 	 	BIOVAIL CORPORATION
	

 	
 	

Per:	

/s/  EUGENE MELNYK      
	 	 	 	

	

 	
 	

Per:	

 
	 	 	 	

	SIGNED, SEALED AND DELIVERED

in the presence of:	 	 	 
	

/s/  M. GARRAWAY      	
 	

 

 
	
	 	

	Witness	 	Kenneth C. Cancellara

9

  

Senior Executive  

 
 

"SCHEDULE A"
  
    EMPLOYMENT SERVICES    
    

        The Executive shall serve as the Senior Vice President and Chief Legal Officer of the Corporation and, as such, shall perform services commensurate with such
position and such other services as reasonably requested by the Chairman of the Board of the Corporation as follows: 

	(i)
	Responsible
for directing and co-ordinating all issues of a legal nature both to be performed internally within the Corporation and to be conducted by
external counsel;

	(ii)
	Assist
the Chairman to establish an effective, required policy rules and guidelines of a legal nature necessary for Biovail to achieve its Corporate objectives;

	(iii)
	In
conjunction with the Chairman of the Board, analyze and strategize over litigation, both judicial and regulatory in order to ensure that Biovail will be able to
maximize its opportunities in respect of its business;

	(iv)
	To
work with and assist all of Biovail's professionals including Biovail's accountants, auditors, solicitors, bankers and underwriters for the purpose of implementing
opportunities for Biovail; and 

        To
maintain an optimal image for Biovail vis-à-vis its bankers, suppliers, customers, shareholders and the public in order to ensure that Biovail
will be able to maximize its opportunities in respect of its business and the potential for strategic alliances and/or strategic positionings and opportunities. 

10

 
 
 

"SCHEDULE B"
  
    REMUNERATION AND VACATION    
    

1.     Vacation  

        The Executive shall be entitled to receive four weeks of paid vacation annually, with increases as may be determined pursuant to the Corporation's policies. 

2.     Base Salary

        The
Executive's base annual salary effective March 1, 2003 shall be $400,000 (USD). The Executive shall be entitled to an annual increase in salary as determined by the Chairman.
The Executive's base salary shall be converted and paid in Canadian currency. The conversion into Canadian currency shall be made at the beginning of every quarter at a rate equal to the average rate
for the previous quarter (as furnished by the Controller of the Corporation). 

3.     Bonus

        The
Executive will be eligible to participate in the Corporation's 2003 Annual Incentive Plan with a target bonus of 50% of the Executive's base salary. The actual amount of the bonus
will be determined by the achievement of corporate objectives and by personal performance. 

4.     Stock Options

	(i)
	Grant

        Beginning
with the year 2003, the Executive shall be entitled to receive a grant of options of up to 100,000 options per year of which 50,000 shall be unconditionally granted and the
remaining 50,000 shall be "earned" based on the fulfillment of corporate objectives and by personal performance. Provided that in the event of a stock split following any such grant of options, the
number of options so granted both unconditionally and "earned" shall be subject to such split(s). For greater certainty, options that have been granted to the Executive (whether or not priced) shall
be subject to future splits. By way of example, if a stock split occurs in any given year, those options granted to the Executive, pursuant to this Paragraph 4(i) of Schedule B,
for that year shall be subject to the stock split; however, future grants of options will not be retroactively subject to any stock split. 

	(ii)
	Vesting

        The
annual options granted shall vest over four (4) years, at the rate of twenty five percent (25%) per year (the "Vesting Period") and may be exercised by the Executive, save as
provided in Article 4(iv) hereunder, pursuant to the procedure described in the Company's Management Stock Option Program, dated March 1, 1996, as amended. 

11

 

	(iii)
	Change
of Control 

        Article 1.01
of the Amendment to Cancellara's Employment Agreement, dated January 19, 1999 (hereto annexed as Schedule "E") states: 

 "1.01    The Employment Agreement be and is hereby amended as follows:  

        Exhibit "B" to the Employment Agreement is amended by adding the following:

	3.
	Stock Options  

        The Corporation shall grant to the Executive a total of 60,000 options to purchase the Corporation's shares pursuant to the Corporation's 1993 Stock Option Plan
as follows:

	(a)
	Options to purchase 30,000 common shares of Biovail Corporation International at U.S. $40 per share shall be granted immediately, which options shall vest on
March 15, 2001, all as set forth in the form of Stock Option Agreement attached hereto as Schedule "A" and

	(b)
	Options to purchase a further 30,000 shares shall be granted on January 19, 2000 and shall vest on March 15, 2001 pursuant to a stock option
agreement in substantially the same form as Schedule "A" hereto and at an exercise price equal to the closing market price at which the shares are traded on The Toronto Stock Exchange on the day prior
to the date the option is granted, or if not so traded, at a price equal to the average between the closing bid and asked prices thereof as reported for that day. Notwithstanding the foregoing, if
there is a "change of control" as such term is defined in the Stock Option Agreement attached hereto as Schedule "A", the first 30,000 options shall vest immediately as provided for in such agreement
and if there is a "change of control" on or after January 19, 2000 the remaining 30,000 options shall be granted and shall vest forthwith.

	4.
	Bonus in the Event of a Change of Control  

        If there is a "change of control" as defined in Section 2.01(c) hereof, the Executive shall be entitled to receive a bonus sufficient to allow the
Executive to fund the exercise of all stock options referred to in paragraph 3 of his Schedule B which have vested or will vest on the change of control and remain
unexercised.

        All other terms and provisions of the Employment Agreement shall remain in full force and effect, unamended."

        These
options, following two splits (2 for 1) currently total 240,000 and expire on January 19, 2004. 

        The
above provision is hereby incorporated by reference in this Agreement and shall continue in full force and effect, such that at a Change of Control event, the Executive shall be
entitled to receive a gross bonus equal to the exercise price of those options. 

	(iv)
	Accelerated
Vesting 

        Notwithstanding
any other provision contained in this Agreement, or in any policy of the Company and notwithstanding the Vesting Period, all options granted (but not yet vested) to the
Executive shall fully and unconditionally vest immediately upon: 

	(a)
	a
"change of control" as defined in Article 2.01 (c) hereof; or

	(b)
	when
the Executive has completed at least ten (10) years of employment with the Corporation and his years of employment plus his age shall equal seventy (70) ("Seventy
Factor") and the Executive is no longer employed with the Corporation. Provided that no 

12

 

vesting
shall occur with respect to those options granted to the Executive in the year when the Executive ceases to be employed with the Corporation. 

	(c)
	upon
the death of the Executive.

	(v)
	Time
of Exercise 

        Notwithstanding
any other provision contained in this Agreement, or in any policy of the Corporation, the Executive shall have, in his sole discretion, one (1) year following the
cessation of his employment or following the termination of an agreed upon affiliation with the Corporation within which to exercise any of his unexercised options, provided that his cessation of
employment shall occur at, or following, the attainment of the "Seventy Factor". Provided that if the Executive is terminated for just cause, all vested options must be exercised by the Executive
within 30 days from the date of termination. Upon the death of the Executive, the Executive's Estate shall have in its sole discretion, one (1) year thereafter within which to exercise
any of the Executive's unexercised options. 

13

QuickLinks

ARTICLE ONE—GENERAL DUTIES AND TERM

ARTICLE TWO—TERMINATION AND RESIGNATION

ARTICLE THREE—REMUNERATION

ARTICLE FOUR—EXECUTIVE'S OBLIGATIONS

ARTICLE FIVE—INTERPRETATION AND ENFORCEMENT

"SCHEDULE A" EMPLOYMENT SERVICES

"SCHEDULE B" REMUNERATION AND VACATION

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}]]