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  Exhibit 4.14    
    

 
 

  AMENDMENT NO. 1
  TO THE
  BIOVAIL CORPORATION 2007 EQUITY COMPENSATION PLAN    
    

        This Amendment No. 1 (the "Amendment") to that certain 2007 Equity Compensation Plan (the "Plan") of Biovail
Corporation (the "Company") is made as of December 18, 2008. Capitalized terms used herein and not otherwise defined shall have the meaning ascribed thereto in the Plan. 

        WHEREAS, the Board of Directors of the Company (the "Board") desires to amend the Plan to comply with the applicable requirements
of section 409A of the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder (the "Code"); and 

        WHEREAS, Section 8.6 of the Plan provides that the Board is authorized to amend the terms of the Plan. 

        NOW, THEREFORE, the Plan is amended in the following respects: 

	1.
	Article 1
of the Plan is amended by adding the following Section 1.3:

	1.3
	Special
Rules for Participants subject to U.S. taxation. 

        There
are special rules for Participants subject to U.S. taxation that are necessary to comply with the final regulations under section 409A of the Code issued by the
Treasury Department on April 10, 2007 and effective January 1, 2009. These special rules are set forth in the Plan where noted and in the attached Addendum to the Biovail Corporation
2007 Equity Compensation Plan ("Addendum") on Exhibit A.  

	2.
	Section 6.1(f)
is hereby amended so that the introduction shall read as follows: 

        (f)    For
purposes of this Section 6.1, a "Change in Control" means the happening of any of the following events, except as the Compensation Committee may modify the
definition of Change in Control for a particular grant of Options or Units as the Committee deems appropriate to comply with section 409A of the Code
or otherwise: 

	3.
	Section 8.14
is hereby amended and replaced with the following Section 8.14:

	8.14
	Section 409A
of the Code. 

        Options
granted under this Plan are intended to be exempt under, and not subject to, section 409A of the Code and shall be limited, construed and interpreted in accordance with
such intent. Options or Units granted under the Plan shall be structured in a manner consistent with the requirements of section 409A of the Code and payment or distributions with respect
thereto shall only be made in a manner and upon an event permitted under section 409A of the Code and, to the extent required under section 409A of the Code, payments or distributions to
a Participant subject to U.S. taxation who is a "specified employee" (within the meaning of such term under Section 409A of the Code) upon his or her separation from service shall be
postponed and subject to a 6 month delay and shall be paid within 15 days after the end of the 6 month period following separation from service, or if such Participant dies during
the postponement period prior to the payment of postponed amount, the amounts withheld on account of section 409A of the Code shall be paid to the personal representative of such Participant's
estate within 60 days after the date of such Participant's death. All payments to Participant's subject to U.S. taxation, made upon a termination of employment or service, shall only be
made upon a "separation from service" under section 409A of the Code. In no event
shall a Participant subject to U.S. taxation, directly or indirectly designate the calendar year in which payment or distribution is made. References to "Participants subject to
U.S. taxation" throughout this Plan shall include only those Participants employed in the U.S. or Participants who have advised the company in writing that they are subject to
U.S. income tax. 

 

        IN WITNESS WHEREOF, the Company has caused the execution of this Amendment on this 18th day of December, 2008. 

					
	 
	 	 
	 	 

	 	 	BIOVAIL CORPORATION
	 	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	s/s MARK DURHAM

  Name: Mark Durham

Title: Senior Vice President of Human Resources and Shared Services

2

 
 
 

  EXHIBIT A
  
    ADDENDUM    
    

3

 
 
 

  ADDENDUM TO THE BIOVAIL CORPORATION
  2007 EQUITY COMPENSATION PLAN    
    

        This Addendum to the Biovail Corporation 2007 Equity Compensation Plan ("Addendum") applies to all Participants subject to
U.S. taxation. The Section references set forth below match the Section references in the Plan. This Addendum shall have no other effect on any other terms and provisions set forth in the Plan
except as set forth below. Capitalized terms not otherwise defined herein shall have the same meaning ascribed to such terms under the Plan. 

5.1   Grant and Vest of Units  

        (d)   Provided
that a Unitholder has been employed by the Company or a Related Entity for at least ten (10) consecutive years, provided that the sum of the Unitholder's
age and the Unitholder's years of service with the Company or a Related Entity equals or exceeds "70", all of the unvested Units held by such Unitholder shall immediately vest on the date on which
such Unitholder has been employed by the Company or a Related Entity for at least ten (10) consecutive years, provided that the sum of the Unitholder's age and the Unitholder's years of service
with the Company or a Related Entity equals or exceeds "70". Payment with respect of such vested Units, whether in the form of Common Shares, cash or both, shall be made by the Company to the
Unitholder (or the Unitholder's designated beneficiary if applicable) within 60 days following the earliest to occur of the following events: the third anniversary of the Date of Grant
(or such date as provided in the Unit Agreement in accordance with Section 5.1(b)), death, Disability (within the meaning of such term under section 409A) or the
Termination Date (other than in the case of termination for cause). For the purposes of this Section, a Unitholder's employment with the Company or a Related Entity ends on the
Termination Date. 

5.3   Unit Rights  

        (c)   Unless
otherwise specified in the Unit Agreement, the Company may, in lieu of all or a portion of the Common Shares which would otherwise be issued or provided to a
Unitholder, elect to pay a cash amount to a Unitholder equivalent to the Market Price of one Common Share for each vested Unit, to be paid within 60 days following the Vesting Date, provided
that the Vesting Date does not occur during the Blackout Period. 

5.5   Dividends  

        Except as otherwise determined by the Board on the Date of Grant, a Unitholder's Unit Account shall, until the earlier of the Vesting Date or termination and
cancellation or forfeiture of the Units pursuant to the terms of the Plan, be allocated additional Units on the payment date of dividends on the Company's Common Shares, the number of which shall be
the quotient determined by dividing: (a) the total amount of the dividends (excluding stock dividends but including dividends which may be paid in cash or Common Shares at the option of the
shareholder) declared and that would have been paid to the Unitholder if the Units in his or her Unit Account on the relevant record date for dividends on the Common Shares had been Common Shares by
(b) the closing price of the Common Shares on the TSX, NYSE or other exchange where the majority of the trading volume and value of the Common Shares occurs on the payment date of such
dividends. Fractional Units shall not be granted pursuant to this Section 5.5. Any such additional Units shall have the same Vesting Dates and vest in accordance with the same terms as the
Units in respect of which such additional Units are credited. 

5.7   Retirement, Death and Disability of Unitholder  

        (a)   In
the case of an Employee Participant or Executive Participant, provided that the Individual Unitholder has been continuously employed by the Company or a Related
Entity for a 12-month period following the Date of Grant of Units, if the employment or term of the office of the Individual Unitholder with the Company or a Related Entity terminates
prior to the vesting of such Units on or after the Individual Unitholder's attainment of Retirement Age,, then such Individual Unitholder shall vest in the right to receive a number of Units following
the Unitholder's Termination Date (subject to the attainment of performance goals and any other factors, if any, as determined by the Compensation Committee in its sole discretion), provided that the
number of Units in which the Individual Unitholder shall be vest in the right to receive as of the Termination Date shall be prorated by multiplying the number of unvested Units by the number of days
from but 

4

 

excluding
the Date of Grant to and including the Termination Date during which the Individual Unitholder has been providing active service to the Company or a Related Entity, divided by the total
number of days from but excluding the Date of Grant to and including the third anniversary of the Date of Grant (or such date as provided in the Unit Agreement in accordance with
Section 5.1(b)). Any remaining unvested Units shall be cancelled on the Termination Date. Payment with respect of the vested Units, whether in form of Common Shares, cash or both, shall be made
by the Company to the Unitholder within 60 days following the third anniversary date of the Date of Grant (or such date as provided in the Unit Agreement in accordance with
Section 5.1(b)). If the Individual Unitholder has not been so continuously employed by the Company or a Related Entity for such 12-month period, then all unvested Units shall be
cancelled on the Termination Date. 

        (b)   In
the case of an Employee Participant, Executive Participant or Consultant Participant, if an Individual Unitholder dies while an employee, director or officer of, or
while a consultant to, the Company or a Related Entity, as applicable, and prior to the vesting of Units, then such Units shall vest on the date of death (subject to the attainment of performance
goals and any other factors, if any, as determined by the Compensation Committee in its sole discretion), provided that the number of Units which shall vest on such date shall be prorated by
multiplying the number of unvested Units by the number of days from but excluding the Date of Grant to and including the date of death during which the Individual Unitholder had provided active
service to the Company or a Related Entity, divided by the total number of days from but excluding the Date of Grant to and including the third anniversary of the Date of Grant (or such date as
provided in the Unit Agreement in accordance with Section 5.1(b)). The payment with respect of the vested Units, whether in form of Common Shares, cash or both, shall be made by the Company to
the Unitholder's designated beneficiary specified in the Unit Agreement with 60 days after the date of death. Any remaining unvested Units shall be cancelled on the date of death. 

        (c)   In
the case of an Employee Participant, Executive Participant or Consultant Participant, if an Individual Unitholder becomes Disabled while an employee, director or
officer of, or while a consultant to, the Company or a Related Entity, as applicable, and prior to the vesting of Units, then such Units shall vest on the date of Disability (subject to the attainment
of performance goals and any other factors, if any, as determined by the Compensation Committee in its sole discretion), provided that the number of Units which shall vest on such date shall be
prorated by multiplying the number of unvested Units by the number of days from but excluding the Date of Grant to and including the date of Disability during which the Individual Unitholder had
provided active service to the Company or a Related Entity, divided by the total number of days from but excluding the Date of Grant to and including the third anniversary of the Date of Grant
(or such date as provided in the Unit Agreement in accordance with Section 5.1(b)). The payment with respect of the vested Units, whether in form of Common Shares, cash or both, shall be
made by the Company to the Unitholder within 60 days following the Unitholder's Disability. Any remaining unvested Units shall be cancelled on the date of Disability. Notwithstanding the
foregoing, no payment shall be made to a Participant on account of Disability unless a Participant becomes disabled within the meaning of such term under section 409A(a)(2)(C) of
the Code. 

6.1   Change in Control  

        Notwithstanding any provision to the contrary in the Plan, in the event a Change in Control occurs as set forth in Section 6.1 of the Plan and Units
accelerate as described in Section 6.1 of the Plan, payment shall be made to the Unitholder within 60 days after the consummation of the Change in Control; provided, however, that Units
shall be paid in accordance with Section 6.1 only if the transaction constituting a Change in Control is also a "change in control event" for purposes of section 409A of the Code ("409A
Change in Control Event"). If the Change in Control does not constitute a 409A Change in Control Event then Units shall be paid on the earliest to occur of the following events: death, Disability, the
Termination Date or the third anniversary date of the Date of Grant (or such date as provided in the Unit Agreement in accordance with Section 5.1(b)). 

7.2   Reorganization of Company's Capital  

        Should the Company effect a subdivision or consolidation of Common Shares or any similar capital reorganization or a payment of a stock dividend (other than a
stock dividend that is in lieu of a cash dividend), or should any other change be made in the capitalization of the Company that, in the opinion of the Board, would warrant the replacement or
amendment of any existing Options or Units in order to adjust: (a) the 

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number
of Common Shares that may be acquired on the exercise of any outstanding Options or vesting of any outstanding Units; and/or (b) the Exercise Price of any outstanding Options in order to
preserve proportionately the rights and obligations of the Optionholders, the Board will authorize such steps to be taken as may be equitable and appropriate to that end. Any adjustments to
outstanding Options or Units shall be consistent with the applicable requirements of section 409A. 

7.3   Other Events Affecting the Company  

        In the event of an amalgamation, combination, merger or other reorganization involving the Company by exchange of Common Shares, by sale or lease of assets or
otherwise, that, in the opinion of the Board, warrants the replacement or amendment of any existing Options or Units in order to adjust: (a) the number of Common Shares that may be acquired on
the exercise of any outstanding Options or the vesting of any outstanding Units; or (b) the Exercise Price of any outstanding Options in order to preserve proportionately the rights and
obligations of the Optionholders, the Board will authorize such steps to be taken as may be equitable and appropriate to that end. Any adjustments to outstanding Options or Units shall be consistent
with the applicable requirements of section 409A. 

7.4   Immediate Exercise of Options or Vesting of Units  

        Where the Board determines that the steps provided in Sections 7.2 and 7.3 would not preserve proportionately the rights and obligations of the
Optionholders or the Unitholders in the circumstances or otherwise determines that it is appropriate, the Board may permit the immediate exercise of any outstanding Options or vesting of any
outstanding Units that are not otherwise exercisable or vested (as the case may be). Notwithstanding the foregoing, payment with respect to any outstanding vested Units in accordance with
Section shall be made on the earliest to occur of the following events: death, Disability, the Termination Date or the third anniversary date of the Date of Grant (or such date as provided in
the Unit Agreement in accordance with Section 5.1(b)). 

8.7   Indemnification  

        Every Director will at all times be indemnified and saved harmless by the Company from and against all costs, charges and expenses whatsoever including any income
tax liability arising from any such
indemnification, that such Director may sustain or incur by reason of any action, suit or proceeding, taken or threatened against the Director, otherwise than by the Company, for or in respect of any
act done or omitted by the Director in respect of this Plan, such costs, charges and expenses to include any amount paid to settle such action, suit or proceeding or in satisfaction of any judgment
rendered therein. All reimbursements provided pursuant to this Section 8.7, shall be made or provided in accordance with the requirements of section 409A of the Code, including, where
applicable, the requirement that (A) any reimbursement shall be for expenses incurred during the Director's lifetime, (B) the amount of expenses eligible for reimbursement, during a
calendar year may not affect the expenses eligible for reimbursement in any other calendar year, (C) the reimbursement of an eligible expense will be made on or before the last day of the
calendar year following the year in which the expense is incurred and (D) the right to reimbursement is not subject to liquidation or exchange for another benefit. 

 The following defined terms shall apply to the provisions set forth above:  

"Termination Date" means: 

	(i)
	in
the case of an Employee Participant or Executive Participant whose employment or term of office with the Company or a Related Entity terminates in the
circumstances set out in Subsections 4,7(b), 4.7(c), 5.8(a) or 5.8(b) the date that is designated by the Company or a Related Entity, as the case may be, as the last day of the
Optionholder's or the Unitholder's (as the case may be) employment or term of office with the Company or the Related Entity, as the case may be; provided that "Termination Date" specifically
does not mean the date on which any period in respect of which any pay in lieu of notice, that the Company or the Related Entity (as the case may be) may be required by law or may voluntarily
elect to provide to the Optionholder or the Unitholder (as the case may be), expires; and 

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	(ii)
	in
the case of a Consultant Participant whose consulting agreement or arrangement with the Company or a Related Entity, as the case may be, terminates in
the circumstances set out in Subsection 4,7(b), 4.7(c), 5.8(a) or 5.8(b) the date that is designated by the Company or the Related Entity, as the case may be, as the date on which the
Optionholder's or the Unitholder's (as the case may be) consulting agreement or arrangement is terminated; provided that "Termination Date" specifically does not mean the date on which any
period of notice of termination that the Company or the Related Entity (as the case may be) may be required to provide to the Optionholder or the Unitholder (as the case may be) under
the terms of the consulting agreement for which the Company has elected to provide compensation in lieu of notice;

	(iii)
	in
the case of Participants subject to U.S. taxation, if any payment is to be made upon a "Termination Date", the "Termination Date" shall mean a
"separation from service" (within the meaning of such term under section 409A of the Code). 

"Retirement Age" means attainment of age 65. 

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Exhibit 4.14

AMENDMENT NO. 1 TO THE BIOVAIL CORPORATION 2007 EQUITY COMPENSATION PLAN

EXHIBIT A ADDENDUM

ADDENDUM TO THE BIOVAIL CORPORATION 2007 EQUITY COMPENSATION PLANQuickLinks
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  Exhibit 4.18    
    

BIOVAIL CORPORATION  

DEFERRED SHARE UNIT PLAN FOR

US DIRECTORS  

 APPROVED: MAY 3, 2005

AMENDED AND RESTATED EFFECTIVE JANUARY 1, 2009  

 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	 	 	4	 
	
ARTICLE 2

INTERPRETATION
	
 
	2.1	 	Governing Law	 	 	4	 
	2.2	 	Severability	 	 	4	 
	2.3	 	References	 	 	4	 
	
ARTICLE 3

ELIGIBILITY
	
 
	3.1	 	Establishment	 	 	4	 
	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	 	 	5	 
	4.2	 	Election to Participate	 	 	5	 
	4.3	 	Effect of Notice	 	 	5	 
	4.4	 	Termination or Change to Election	 	 	5	 
	4.5	 	Timing and Recording of Credits	 	 	6	 
	4.6	 	Calculation of Number of Deferred Share Units	 	 	6	 
	4.7	 	Deferred Share Unit Account	 	 	6	 
	4.8	 	Dividends	 	 	6	 
	4.9	 	Adjustments	 	 	6	 
	4.10	 	No Price Adjustment	 	 	6	 
	
ARTICLE 5

REDEMPTION ON RETIREMENT OR DEATH
	
 
	5.1	 	Redemption	 	 	6	 
	5.2	 	Payment of Redeemed Amount	 	 	7	 
	
ARTICLE 6

SHAREHOLDER RIGHTS
	
 
	6.1	 	No Shareholder Rights	 	 	7	 
	
ARTICLE 7

ADMINISTRATION
	
 
	7.1	 	Unfunded Obligation	 	 	7	 
	7.2	 	Committee to Administer Plan	 	 	7	 
	7.3	 	Amendment and Termination	 	 	7	 
	7.4	 	Costs of Administration	 	 	7	 
	7.5	 	Section 409A of the Code	 	 	7	 
	
ARTICLE 8

ASSIGNMENT
	
 
	8.1	 	Assignment	 	 	8	 

 
 
 

  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". This Plan is amended and restated
effective January 1, 2009 to implement changes required pursuant to and consistent with section 409A of the Internal Revenue Code of 1986, as amended and the regulations promulgated
thereunder (the "Code"). Until December 31, 2008 the Plan has been operated in accordance with transition relief established by the Treasury Department and Internal Revenue Service
pursuant to section 409A of the Code. 

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 

3

 

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. 

1.4   Schedules.  

Schedule A — Election
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.  

        The Plan was originally effective May 4, 2005. The Plan as amended and restated herein is effective January 1, 2009. 

4

 

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. 

 ARTICLE 4  

 DEFERRED SHARE UNIT GRANTS AND ACCOUNTS  

4.1   Annual Grants.  

        Each year, within three (3) business days 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 the preceding 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 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. An Election Notice must be filed on or before the last business day of the calendar year ending immediately before the
calendar year to which the Annual Board Retainer and/or Annual Chair Retainer relate, except in the case of a newly elected or appointed Director, whose Election Notice is effective for the year in
which such Director first becomes a Director if the Election Notice is filed on or before the earlier of (i) thirty days after the date the Director first became a Director, and (ii) the
last business day of the calendar year in which the Director first became a Director. 

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 rules set forth in Section 4.4 of 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. A subsequent Election Notice will become effective at the beginning of the calendar year following the calendar year in which the subsequent Election Notice
is filed.

	(b)
	For
greater certainty 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. 

5

 

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 the Plan 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.  

        A bookkeeping 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 and redeemed in
accordance with the terms of Article 5. 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. Any adjustments shall be made consistent with the applicable requirements of section 409A of the Code. 

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 redeemed immediately following the earliest to occur of the following events: (i) the Member's "separation from service" (within the meaning of such term 

6

 

under
section 409A of the Code) with the Corporation; (ii) the Member's disability (within the meaning of such term under section 409A of the Code); or (iii) the Member's
death. (collectively such events shall be referred to as the "Member's Termination Date"). 

5.2   Payment of Redeemed Amount.  

        Subject to applicable income tax, other withholdings as required by law and the 6 month delay set forth in Section 7.5 below, 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 lump sum cash
payment, less the amounts required to be withheld by applicable law, within 30 days following the Member's Termination Date. The amount of the cash payment to be paid to the Member
(or if the Member has died, to his or her estate, as the case may be) on redemption, before such withholdings, shall be determined by multiplying the number of Deferred Share Units held by the
Member on the Member's Termination Date by the Market Price on such Member's Termination Date. 

 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. 

7.5   Section 409A of the Code  

        This Plan is intended to comply with the applicable requirements of section 409A of the Code and shall be administered in accordance with
section 409A of the Code. All payments to be made upon a termination of employment or service, shall only be made upon a "separation from service" under section 409A of the Code. In no
event shall a Member, directly or indirectly designate the calendar year in which payments will be made. All payments under the Plan shall be structured in a manner consistent with the requirements of
section 409A of the Code and payments with respect thereto shall only be made in a manner and upon an event permitted under section 409A of the Code and, to the extent required under
section 409A of the Code, payments to a Member who is a "specified employee" (within the meaning of such term under section 409A of the Code) upon his or 

7

 

her
separation from service shall be postponed and subject to a 6 month delay and shall be paid within 15 days after the end of the 6 month period following separation from
service, or if such Member dies during the postponement period prior to the payment of postponed amount, the amounts withheld on account of section 409A of the Code shall be paid to the
personal representative of such Member's estate within 60 days after the date of such Member's death. To the extent that any provision of the Plan would cause a conflict with the requirements
of section 409A of the Code, or would cause the administration of the Plan to fail to satisfy the requirements of section 409A of the Code, such provision shall be deemed null and void
to the extent permitted by applicable law. 

 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 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. 

8

 Schedule A to Deferred Share Unit Plan

for Directors of Biovail Corporation (the "Plan")  

 
 

  ELECTION NOTICE    
    

        Please complete one of the following: 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 first annual payment of the first calendar year beginning after the date
hereof,(1) 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 first annual payment of the first calendar year beginning after 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 first annual payment of the first calendar year beginning after the date hereof.  

	o
	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. 

	(1)
	If
this is the year in which I have first become Director, my participation commences with the next annual payment in the current year if this Election
Notice is filed on or before the earlier of (i) thirty days after the date I first became Director, and (ii) the last business day of this calendar year. 

          7.       An
election filed pursuant to Section 1, 2 or 3 of this Schedule A is required to be filed with the Chief Financial Officer of the Corporation not
later than the last business day of the calendar year ending before the particular calendar year in respect of which I am electing to receive any portion of my Annual Board Retainer and/or my Annual
Chair Retainer in DSUs rather than cash (or in respect of which I am electing to change or terminate such election, as the case may be). 

        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)

QuickLinks

Exhibit 4.18

BIOVAIL CORPORATION DIRECTORS' DEFERRED SHARE UNIT PLAN

ELECTION NOTICE

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