Document:

Exhibit 4.2

 

[FORM OF GLOBAL NOTE]

 

[Insert Global Security
Legend, if required pursuant to the Indenture]

 

[Insert Private Placement
Legend, if required pursuant to the Indenture]

 

[Insert Canadian Private
Placement Legend, if required pursuant to the Indenture]

 

BIOVAIL CORPORATION

 

5.375% Senior Convertible Notes due 2014

 

	
  No. [·]

  	
  CUSIP NO. 09067J AC3

  	
   

  
	
   

  	
  ISIN US09067JAC36

  	
  US$[·]

  

 

Biovail Corporation, a corporation duly
organized and validly existing under the laws of Canada (herein called the “Company”,
which term includes any successor corporation under the Indenture referred to
on the reverse hereof), for value received hereby promises to pay to [Cede &
Co.], or registered assigns, the principal sum of [·] United States Dollars ($·) [INCLUDE IF SECURITY IS A GLOBAL SECURITY — (which amount may
from time to time be increased or decreased by adjustments made on the records
of the Trustee, as custodian for the Depositary, in accordance with the rules and
procedures of the Depositary)] on August 1, 2014.

 

Reference is made to the further provisions
of this Security set forth on the reverse hereof, including, without
limitation, provisions giving the Holder of this Security the right to convert
this Security in certain circumstances and the ability and the obligation of
the Company to make an offer to repurchase this Security upon certain events on
the terms and subject to the limitations referred to on the reverse hereof and
as are more fully specified in the Indenture. 
Such further provisions shall for all purposes have the same effect as
though fully set forth at this place.

 

This Security shall be deemed to be a
contract made under the laws of the State of New York, and for all
purposes shall be construed in accordance with and governed by the laws of said
State.

 

This Security shall not be valid or become
obligatory for any purpose until the certificate of authentication hereon shall
have been manually signed by the Trustee or a duly authorized authenticating
agent under the Indenture.

 

 

IN WITNESS WHEREOF, the Company has caused
this instrument to be duly executed.

 

 

	
   

  	
   

  	
  BIOVAIL
  CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized Signatory

  
	
   

  	
   

  	
   

  
	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Authorized Signatory

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  TRUSTEE’S
  CERTIFICATE OF AUTHENTICATION

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
  THE BANK OF NEW YORK MELLON,

  
	
   

  	
   

  	
   

  	
  as Trustee

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized Signatory

  
						

 

 

[Reverse
of Security]

 

BIOVAIL CORPORATION

 

5.375% Senior Convertible Notes due 2014

 

This Security is one of a duly authorized
issue of Securities of the Company, designated as its 5.375% Senior Convertible
Notes due 2014 (herein called the “Securities”),
all issued or to be issued under and pursuant to an Indenture dated as of June 10,
2009 (herein called the “Indenture”),
between the Company and  The Bank of
New York  Mellon (herein called the “Trustee”) and BNY Trust Company of Canada (herein called the
“Co-Trustee”), to which Indenture and
all indentures supplemental thereto reference is hereby made for a description
of the rights, limitations of rights, obligations, duties and immunities
thereunder of the Company, the Trustee, the Co-Trustee and the Holders of the
Securities.  Terms used herein which are
defined in the Indenture have the meanings assigned to them in the Indenture.

 

The indebtedness evidenced by the Securities
is senior unsecured indebtedness of the Company and ranks equally with the
Company’s other senior unsecured indebtedness.

 

Interest.  The Company will
pay interest on the principal amount of this Security at the rate of 5.375% per
annum.  The Company will pay interest
semiannually in arrears on February 1 and August 1 of each year,
commencing on February 1, 2010.

 

Interest will be paid to the person in whose
name a Security is registered at the close of business on or, as the case may
be, immediately preceding the relevant Interest Payment Date. Interest
(including any Additional Interest Amounts) on the Securities shall be computed
on the basis of a 360-day year of twelve 30-day months.  Each rate of interest which is calculated
with reference to a period that is less than the actual number of days in the
calendar year of calculation is, for the purposes of the Interest Act
(Canada), equivalent to the yearly rate of interest payable on the Securities
multiplied by the actual number of days in the year and divided by 360.  The amount of interest payable for any period
shorter than a full quarterly period for which interest is computed will be
computed on the basis of the actual number of days elapsed in the period.

 

The Holder of this Security at 5:00 p.m.,
New York City time, on a Regular Record Date shall be entitled to receive
interest (including Additional Interest Amounts and Additional Amounts, if
any), on this Security on the corresponding Interest Payment Date. The Holder
of this Security at 5:00 p.m., New York City time, on a Regular Record
Date will receive payment of interest (including Additional Interest Amounts
and Additional Amounts, if any) payable on the corresponding Interest Payment
Date notwithstanding the conversion of this Security at any time after 5:00 p.m.,
New York City time, on such Regular Record Date. If this Security is
surrendered for conversion during the period after 5:00 p.m., New York
City time, on any Regular Record Date to 9:00 a.m., New York City time, on
the immediately following Interest

 

 

Payment Date, it must be
accompanied by payment of an amount equal to the interest (including Additional
Interest Amounts and Additional Amounts, if any) that the Holder is to receive
on the Securities on the corresponding Interest Payment Date, subject to the
exceptions set forth in Section 13.03(b) of the Indenture. Except
where this Security is surrendered for conversion and must be accompanied by
payment as described above, no interest (including Additional Interest Amounts
or Additional Amounts, if any) thereon will be payable by the Company on any
Interest Payment Date subsequent to the date of conversion, and delivery of the
cash and Common Shares, if applicable, pursuant to Article XIII of the
Indenture, together with any cash payment for any fractional shares, upon
conversion will be deemed to satisfy the Company’s obligation to pay the
principal amount of the Securities and accrued and unpaid interest (including
Additional Interest Amounts or Additional Amounts, if any) to, but not
including, the related Conversion Date.

 

Method of Payment.  By no later than
10:00 a.m., New York City time, on the date on which any principal of or
interest (including Additional Interest Amounts or Additional Amounts, if any)
on any Security is due and payable, the Company shall deposit with the Paying
Agent money sufficient to pay such amount. 
The Company will pay principal and interest in money of the United
States that at the time of payment is legal tender for payment of public and
private debts.  Payments in respect of
Securities represented by a Global Security (including principal and interest
(including Additional Interest Amounts and Additional Amounts, if any)) will be
made by wire transfer of immediately available funds to the accounts specified
by the Depositary.  The Company will pay
principal of Physical Securities at the office or agency designated by the
Company in The Borough of Manhattan, The City of New York.  Interest (including Additional Interest
Amounts and Additional Amounts, if any) on Physical Securities will be payable (i) to
Holders having an aggregate principal amount of $5,000,000 or less, by check
mailed to the Holders of these Securities and (ii) to Holders having an
aggregate principal amount of more than $5,000,000, either by check mailed to
each Holder or, upon application by a Holder to the Security Registrar not
later than two days prior to the relevant Regular Record Date, by wire transfer
in immediately available funds to that Holder’s account within the United
States, which application shall remain in effect until the Holder notifies the
Security Registrar, in writing, to the contrary.

 

Additional Amounts.  The Company shall
pay to the Holders such Additional Amounts as may become payable under Section 10.10
of the Indenture.

 

Redemption
For Tax Reasons; Notice of Election by Holder.  Subject to the terms of the Indenture, the
Company may, at its option, redeem the Securities, in whole but not in part,
for an amount equal to 100% of the Principal Amount of the Securities, plus
accrued and unpaid interest (including Additional Interest Amounts or
Additional Amounts, if any) to, but excluding, the Redemption Date (the “Redemption Price”), if the Company has
become or would become obligated to pay to the Holders Additional Amounts
(which are more than a de minimis
amount) as a result of any amendment or change occurring after June 3,
2009 in the laws or any regulations of Canada or any Canadian political
subdivision or taxing authority, or any change

 

 

occurring
after June 3, 2009 in the interpretation or application of any such laws
or regulations by any legislative body, court, governmental agency, taxing
authority or regulatory authority (including the enactment of any legislation
and the publication of any judicial decision or regulatory or administrative
determination); provided, the Company cannot
avoid these obligations by taking reasonable measures available to it and that
it delivers to the Trustee and the Co-Trustee an opinion of Canadian legal
counsel specializing in taxation and an Officers’ Certificate attesting to such
change and obligation to pay Additional Amounts (such a redemption, referred to
herein as a “Tax Redemption”).

 

Upon receiving a Notice of Redemption with
respect to a Tax Redemption, each Holder who does not wish to have the Company
redeem its Securities pursuant to Article XI of the Indenture can elect to
(i) convert its Securities pursuant to Article XIII of the Indenture
or (ii) not have its Securities redeemed, provided that no Additional
Amounts will be payable on any payment of interest or principal with respect to
the Securities after such Redemption Date. 
All future payments will be subject to the deduction or withholding of
any Canadian Taxes required by law to be deducted or withheld.

 

Where no such election is made, the Holder
will have its Securities redeemed without any further action.  If a Holder does not elect to convert its
Securities pursuant to Article XIII of the Indenture but wishes to elect
to not have its Securities redeemed, such Holder must deliver to the Paying
Agent designated by the Company for such purpose in the Notice of Redemption, a
written Notice of Election (the “Notice of Election”)
in the form provided on the back of this Security (or a facsimile thereof), or
any other form of written notice substantially similar to the Notice of
Election, in each case, duly completed and signed, so as to be received by the
Paying Agent no later than the close of business on the fifth Business Day
prior to the Redemption Date.

 

A Holder may withdraw any Notice of Election
by delivering to the Company (if the Company is acting as its own Paying
Agent), or to a Paying Agent designated by the Company in the Notice of
Redemption, a written notice of withdrawal prior to the close of business on
the Business Day prior to the Redemption Date.

 

Redemption
at the Option of the Company.  At any time on or after August 2, 2012,
the Company may redeem the Securities, in whole or from time to time in part,
for cash at a Redemption Price equal to 100% of the Principal Amount being
redeemed plus accrued and unpaid interest to, but excluding, the Redemption
Date, if the Closing Sale Price of the Common Shares is equal to or greater
than 130% of the Conversion Price then in effect for at least 20 Trading Days
in the period of 30 consecutive Trading Days ending on the Trading Day prior to
the date of mailing of the Notice of Redemption (as defined below) (such a
redemption, referred to herein as an “Optional
Redemption”).

 

Others
Matters Relating to Redemption.  Written notice of any Tax Redemption or
Optional Redemption will be provided at least 30 days but not more than 60 days
prior to the Redemption Date to each Holder of Securities to be redeemed;

 

 

provided
that, in the case of a Tax Redemption, (i) in no event will the Company be
obligated to give notice of redemption earlier than 60 days prior to the
earliest date on or from which it would be obligated to pay any Additional
Amounts, and (ii) at the time the Company gives the notice, the
circumstances creating its obligation to pay such Additional Amounts remain in
effect.

 

If cash sufficient to pay the Redemption
Price of all Securities (or portions thereof) to be redeemed on the Redemption
Date is deposited with the Paying Agent on or before the Redemption Date and
certain other conditions are satisfied, on and after such Redemption Date, such
Securities (or portions thereof) will cease to be outstanding and interest
(including Additional Interest Amounts or Additional Amounts, if any) on such
Securities will cease to accrue (whether or not book-entry transfer of such
Securities is made or whether or not such Securities are delivered to the
Paying Agent).

 

If a Redemption Date is after a Regular
Record Date for the payment of interest but on or prior to the corresponding
Interest Payment Date, then the interest payable on such Interest Payment Date
will be paid to the Holder of record of such Securities on the relevant Regular
Record Date, and the amount paid to the Holder who presents the Securities for
redemption shall be 100% of the Principal Amount of such Securities.

 

Offer to Purchase By the Company
upon a Fundamental Change.  Subject to the terms and conditions of the
Indenture, in the event of a Fundamental Change with respect to the Company at
any time prior to August 1, 2014, the Company will be required to make an
offer to purchase for cash (the “Fundamental
Change Purchase Offer”) all outstanding Securities at a purchase
price equal to the Principal Amount plus accrued but unpaid interest, including
Additional Interest Amounts or Additional Amounts, if any (the “Fundamental Change Purchase Price”), up to,
but excluding, the Fundamental Change Purchase Date.  The “Fundamental
Change Purchase Date” will be a date specified by the Company that
is no later than the 30th calendar day following the date of the
Fundamental Change Notice (as defined below).

 

Within 30 calendar days after the occurrence
of a Fundamental Change with respect to the Company, the Company shall mail to
the Trustee, the Co-Trustee and all Holders of the Securities at their
addresses shown in the Security Register, and to beneficial owners of the
Securities as may be required by applicable law, a notice (the “Fundamental Change Notice”) of the occurrence of such Fundamental
Change and the Fundamental Change Purchase Offer arising as a result thereof.

 

To accept the Fundamental Change Purchase
Offer, a Holder of Securities must deliver to the Paying Agent designated by
the Company for such purpose in the Fundamental Change Purchase Notice, on or
before the Business Day immediately preceding the Fundamental Change Purchase
Date, (i) written notice of acceptance of the Fundamental Change Purchase
Offer in the form set forth in the Fundamental Change Purchase Offer Acceptance
Notice on the back of this Security (the “Fundamental Change
Purchase Notice”), or any other form of written notice substantially
similar to the Fundamental Change Purchase Notice, in each case, duly completed
and signed, with 

 

 

appropriate signature
guarantee, and (ii) such Securities that the Holder wishes to tender for
purchase by the Company pursuant to the Fundamental Change Purchase Offer,
together with the necessary endorsements for transfer to the Company.

 

Holders have the right to withdraw any
Fundamental Change Purchase Notice by delivering to the Paying Agent a written
notice of withdrawal in accordance with the provisions of the Indenture.

 

If the Fundamental Change Purchase Date is
after a Regular Record Date but on or prior to the corresponding Interest
Payment Date, then the interest payable on such date will be paid to the Holder
of record of the Security on the relevant Regular Record Date and the
Fundamental Change Purchase Price payable to the Holder who presents the
Security for repurchase shall be 100% of the Principal Amount of such Security.

 

Conversion.  Subject to and in
compliance with the provisions of the Indenture (including without limitation
the conditions of conversion of this Security set forth in Section 13.01
thereof), the Holder hereof has the right, at its option, to convert the
Principal Amount hereof or any portion of such principal which is $1,000 or an
integral multiple thereof, into, subject to Section 13.02 of the
Indenture, Common Shares at the initial conversion rate of 67.0880 Common
Shares per $1,000 Principal Amount of Securities (the “Conversion Rate”) (equivalent to a
Conversion Price of $14.91), subject to adjustment in certain events described
in the Indenture.  Upon conversion of a
Security, the Company will have the right to elect to deliver cash or a
combination of cash and Common Shares for the Securities surrendered instead of
delivering only Common Shares (plus cash in lieu of fractional Common Shares),
as set forth in the Indenture.  No fractional
shares will be issued upon any conversion, but an adjustment and payment in
cash will be made, as provided in the Indenture, in respect of any fraction of
a Common Share which would otherwise be issuable upon the surrender of any
Securities for conversion.  The Trustee
will initially act as Conversion Agent. 
A Holder may convert fewer than all of such Holder’s Securities so long
as the Securities converted are an integral multiple of $1,000 Principal
Amount.

 

Amendment
and Waiver.  The Indenture permits, with certain
exceptions as therein provided, the amendment thereof and the modification of
the rights and obligations of the Company and the rights of the Holders of the
Securities under the Indenture at any time by the Company, the Trustee and the
Co-Trustee with the consent of the Holders of not less than a majority in
aggregate Principal Amount of the Outstanding Securities.  The Indenture also contains provisions
permitting the Holders of specified percentages in aggregate Principal Amount
of the Outstanding Securities, on behalf of the Holders of all the Securities,
to waive compliance by the Company with certain provisions of the Indenture and
certain past Defaults under the Indenture and their consequences.  Any such consent or waiver by the Holder of
this Security shall be conclusive and binding upon such Holder and upon all
future Holders of this Security and of any Security issued upon the
registration of transfer hereof or in exchange herefor or in lieu hereof,
whether or not notation of such consent or waiver is made upon this Security.

 

 

Defaults
and Remedies.  If an Event of Default shall occur and be continuing,
the Principal Amount plus accrued but unpaid interest (including Additional
Interest Amounts or Additional Amounts, if any) may be declared due and payable
in the manner and with the effect provided in the Indenture.

 

As provided in and subject to the provisions
of the Indenture, the Holder of this Security shall not have the right to
institute any proceeding with respect to the Indenture or for the appointment
of a receiver or trustee or for any other remedy thereunder, unless (i) such
Holder shall have previously given the Trustee and the Co-Trustee written
notice of a continuing Event of Default with respect to the Securities, (ii) the
Holders of not less than 25% in aggregate Principal Amount of the Outstanding
Securities shall have made written request to the Trustee and Co-Trustee to
institute proceedings in respect of such Event of Default and offered the
Trustee and Co-Trustee reasonable indemnity satisfactory to them, (iii) the
Trustee and Co-Trustee shall not have received from the Holders of a majority
in Principal Amount of Outstanding Securities a direction inconsistent (in
their opinion) with such request, and (iv) the Trustee and the Co-Trustee
shall have failed to institute any such proceeding for 60 days after receipt of
such notice, request and offer of indemnity referred to above.  The foregoing shall not apply to any suit
instituted by the Holder of this Security for the enforcement of any Default in
the payment of the Redemption Price or Fundamental Change Purchase Price or
payment of said principal hereof and interest (including Additional Interest
Amounts, if any) hereon after the respective due dates expressed herein or for
the enforcement of any conversion right.

 

No reference herein to the Indenture and no
provision of this Security or of the Indenture shall alter or impair the
obligation of the Company, which is absolute and unconditional, to pay the
Principal Amount, Redemption Price or Fundamental Change Purchase Price of, and
interest, including Additional Interest Amounts or Additional Amounts, if any,
on, this Security at the times, place and rate, and in the coin, currency or
shares, herein prescribed.  Notwithstanding
the foregoing, prior to the occurrence of a Fundamental Change, the Company
may, with the consent of the holders of not less than a majority in aggregate
Principal Amount of the Securities, amend the obligation of the Company to
repurchase Securities upon a Fundamental Change.

 

Transfers;
Denomination Exchange.  As provided in the Indenture and subject to
certain limitations therein set forth, the transfer of this Security is
registrable in the Security Register, upon surrender of this Security for
registration of transfer at the office or agency of the Company in The City of
New York, duly endorsed by, or accompanied by a written instrument of transfer
in form satisfactory to the Company and the Security Registrar duly executed
by, the Holder hereof or his attorney duly authorized in writing, and thereupon
one or more new Securities, of authorized denominations and for the same
aggregate Principal Amount, will be issued to the designated transferee or
transferees.

 

The Securities are issuable only in
registered form in denominations of $1,000 and any integral multiple of $1,000
above that amount, as provided in the Indenture and subject to certain
limitations therein set forth. 
Securities are exchangeable

 

 

for a like aggregate
Principal Amount of Securities of a different authorized denomination, as
requested by the Holder surrendering the same.

 

No service charge shall be made for any such
registration of transfer or exchange, but the Company may require payment of a
sum sufficient to cover any tax or other governmental charge payable in
connection therewith.

 

Prior to due presentment of this Security for
registration of transfer, the Company, the Trustee, the Co-Trustee and any
agent of the Company, the Trustee or the Co-Trustee may treat the Person in
whose name this Security is registered as the owner hereof for all purposes,
whether or not this Security be overdue, and neither the Company, the Trustee,
the Co-Trustee nor any such agent shall be affected by notice to the contrary.

 

No
Recourse Against Others.  No director, officer, employee, shareholder or Affiliate, as
such, of the Company from time to time shall have any liability for any
obligations of the Company under the Securities or the Indenture.  Each Holder by accepting a Security waives
and releases all such liability.

 

Authentication.  No Security shall be entitled to any benefit
under the Indenture or be valid or obligatory for any purpose unless there
appears on such Security a certificate of authentication executed by the Trustee.

 

Governing
Law; Indenture to Control.  This Security shall be governed by and
construed in accordance with the laws of the State of New York.

 

In the case of any conflict between the
provisions of this Security and the Indenture, the provisions of the Indenture
shall control.  All terms used in this
Security that are defined in the Indenture shall have the meanings assigned to
them in the Indenture.Exhibit
10.1

 

CONFIDENTIAL
TREATMENT REQUESTED:

 

Portions
of this Exhibit have been redacted pursuant to a request for confidential
treatment under Rule 24b-2 of the General Rules and Regulations under
the Securities Exchange Act of 1934, as amended.  Such redacted portions
have been replaced with “{***}” in this Exhibit.  An unredacted version of this
document has been filed separately with the Securities and Exchange Commission
along with the request for confidential treatment.

 

TRADEMARK LICENSE AGREEMENT

 

THIS TRADEMARK LICENSE AGREEMENT (this “Agreement”)
is made and entered into as of the 14th day of May,
2009 (the “Effective Date”), by and between SMITHKLINE BEECHAM CORPORATION, a
GlaxoSmithKline company, a corporation duly organized and existing under the
laws of the Commonwealth of Pennsylvania (“GSK”), and BIOVAIL LABORATORIES
INTERNATIONAL SRL, a Barbados society with restricted liability (“Biovail”).

 

RECITALS

 

WHEREAS, GSK and Biovail are parties to that certain Asset
Purchase Agreement, dated as of May 5, 2009 (the “APA”), pursuant to which
GSK sold and transferred to Biovail certain assets and liabilities relating to
the Product in the Territory (as such terms are defined in the APA);

 

WHEREAS, GSK is the owner of the trademark WELLBUTRIN XL (the
“Licensed Mark”), the corresponding goodwill, and United States Trademark
Registration No. 2,826,347, as well as the Product Trade Dress; and

 

WHEREAS, Biovail desires to obtain a license from GSK, and
GSK desires to grant a license to Biovail, to use the Licensed Mark and the
Product Trade Dress, in connection with the advertising, promotion,
manufacture, offer for sale, sale and distribution of the Product in the
Territory.

 

 

NOW, THEREFORE, for and in consideration of the premises
and the covenants provided herein (including the above recitals that are hereby
incorporated herein), and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties,
intending to be legally bound, agree as follows:

 

1.                                       Definitions. 
Capitalized terms not otherwise defined in this Agreement shall have the
meanings set forth in the APA.

 

2.                                       Grant of
License.  During the Term of this
Agreement, and subject to the terms and conditions contained herein, GSK grants
to Biovail, and Biovail hereby accepts, a nontransferable (except as permitted
hereunder), sole and exclusive, royalty-free license (the “License”), to use
the Licensed Mark and the Product Trade Dress in connection with the
advertising, promotion, manufacture, offer for sale, sale and distribution of
the Product solely in the Territory. 
Biovail consents and agrees that it shall only use the Licensed Mark in
its entirety.  The license granted
hereunder shall be personal to Biovail. 
Biovail may not sublicense, in whole or in part, any of the rights
granted hereunder without the prior written consent of GSK, which consent shall
not be unreasonably conditioned, delayed or withheld.  For the avoidance of doubt, without such
consent from GSK, Biovail may nonetheless sublicense its rights under this
Agreement to its Affiliates and distributors, but only as reasonably necessary
to exercise the rights granted to Biovail hereunder.  Any attempted assignment or sublicense by
Biovail not permitted under this Agreement shall be void and of no force or
effect and shall constitute a material breach of this Agreement.

 

3.                                       Use of License
Mark, Product Trade Dress. 
Biovail shall use and shall cause its permitted sublicensees to use the
Licensed Mark and the Product Trade Dress only in association with the Product
identified in the APA in the Territory. 
GSK shall not itself use, or license or otherwise permit any third party
to use the Licensed Mark or the Product Trade Dress in the Territory during the
term of this Agreement.

 

2

 

4.                                       Quality Control.

 

(a)                                  Biovail agrees
to use the Licensed Mark and the Product Trade Dress only in relation to the
Product consistent with GSK’s brand guidelines attached hereto as Exhibit 1
and to not intentionally use the Licensed Mark and the Product Trade Dress in
any way that would diminish, tarnish, disparage, or damage the goodwill in and
to the Licensed Mark and the Product Trade Dress.  Biovail agrees to use the same level of due
care to avoid diminishing, tarnishing, disparaging, or damaging the goodwill of
the Licensed Mark and the Product Trade Dress as Biovail would use in
connection with its own trademark and trade dress.

 

(b)                                 Upon reasonable
advance written request, Biovail will deliver to GSK, samples of the Product
and samples of packaging, advertising and collateral materials that bears the
Licensed Mark and the Product Trade Dress for the inspection of GSK.  If GSK reasonably determines that Biovail fails
to maintain a consistent level of quality in accordance with the terms of this
Agreement, then GSK may request that Biovail take reasonable steps to remedy
any such deficiencies and Biovail shall promptly comply with such requests.

 

(c)                                  Biovail agrees
not to authorize any third party to use the Licensed Mark or the Product Trade
Dress other than as permitted under this Agreement.  Biovail agrees not to use and shall cause its
permitted sublicensees not to use any trade mark confusingly similar to the Licensed
Mark or the Product Trade Dress.

 

(d)                                 Biovail and its
permitted sublicensees shall comply with all applicable laws and regulations
and obtain all appropriate government approvals pertaining to the sale, lease,
distribution and advertising of Product bearing the Licensed Mark and/or the Product
Trade Dress.

 

(e)                                  Biovail may not
and agrees that neither it nor any of its permitted sublicensees will use the
Licensed Mark outside the Territory.

 

5.                                       Acknowledgment
of Ownership Rights.  Biovail
hereby expressly acknowledges GSK’s ownership of, and rights in, the Licensed
Mark and the Product Trade Dress.  
During

 

3

 

the term of this Agreement,
Biovail agrees that it will not (and will not assist or authorize any third
party to) attack, dispute or contest the validity of GSK’s ownership of the
Licensed Mark and the Product Trade Dress. 
Biovail further agrees that, in the event it acquires any rights in the
Licensed Mark or the Product Trade Dress in the United States or elsewhere in
the world (except as provided under Section 6 of this Agreement and other
rights granted by this Agreement), at GSK’s request, Biovail shall assign all
such rights to GSK, together with all goodwill associated with such rights.

 

6.                                       Maintenance of Licensed Mark.

 

(a)                                  GSK shall not take any
intentional steps to tarnish, disparage, damage and/or diminish the value of
the Licensed Mark or the Product Trade Dress (or the goodwill associated with
either of the foregoing) or frustrate or hinder Biovail’s ability to exercise
its rights under this Agreement.

 

(b)                                 GSK shall
prepare, file, prosecute and maintain trademark applications and registrations
at the United States Patent and Trademark Office for the Licensed Mark.  All costs and expenses (including but not
limited to attorneys’ fees and expenses and official fees) of preparing,
filing, prosecuting and maintaining the Licensed Mark shall be borne by GSK.

 

(c)                                  GSK shall not (i) abandon
the Licensed Mark; (ii) abandon any application for the Licensed Mark; or (iii) permit
any registration issuing therefrom to lapse, expire or be cancelled in the
Territory without first notifying Biovail.

 

(d)                                 If GSK
contemplates any of the events in Section 6(c), GSK will use commercially
reasonable efforts to provide Biovail with as much prior written notice as is
reasonably practicable under the circumstances, but no less than twenty (20)
days prior written notice.  Upon receipt
of such notice, Biovail shall have the option (at its choice) to (A) continue
the prosecution of such applications (and/or maintain such registrations) or
pay any required fees in the name of GSK (or its designee) or (B) promptly
receive an assignment of such Licensed Mark

 

4

 

and the Product Trade Dress
from GSK (and all applications and registration for same, along with all
associated goodwill).  Biovail shall
promptly notify GSK in writing of its election pursuant to the foregoing
sentence.  In the event that Biovail
elects to receive an assignment of the Licensed Mark and the Product Trade
Dress, GSK shall effect such assignment, at its sole cost, within thirty (30)
days of receipt of Biovail’s notice of its election.  In such event, GSK agrees, for no additional
consideration, to execute such further documents and to do such other acts as
may be reasonably necessary and proper to vest full title in, to and under the
Licensed Mark and/or the Product Trade Dress in Biovail, and/or may be
necessary in the Territory for Biovail to obtain, maintain, renew, issue or
enforce such trademark (and related applications and registrations) and trade
dress.  In the event of such assignment
to Biovail, this Agreement shall expire; provided, however that Section 6(a) shall
survive and GSK shall not (and shall not assist or authorize any third party
to) attack, dispute or contest the validity of Biovail’s ownership of the
Licensed Mark and the Product Trade Dress.

 

7.                                       Term and
Termination.

 

(a)                                  Term.  The term of this Agreement shall commence on
the date hereof and shall continue until expiration pursuant to the last
sentence of Section 6(d) above, unless terminated as set forth in
subsection (b) or (c) below.

 

(b)                                 Termination for
Non-Use of the Licensed Mark.  In the event Biovail voluntarily ceases to
use the Licensed Mark in the Territory, Biovail shall provide prompt written
notice to GSK and upon receipt of such notice GSK may terminate this Agreement
and the License granted hereunder on written notice to Biovail.  In the event Biovail does not provide such
written notice but have voluntarily ceased to

 

5

 

use the Licensed Mark in the
Territory for a period of {***}†, notice by Biovail shall be deemed to have
been given and GSK may terminate this Agreement and the License granted
hereunder on written notice to Biovail.

 

(c)                                  Termination by
Biovail.  Biovail may
terminate this Agreement at any time on forty-five (45) days’ written notice to
GSK.

 

(d)                                 Effect of
Termination.  Upon the
termination of this Agreement for any reason, all rights of Biovail to use the
Licensed Mark and the Product Trade Dress shall cease.  Further, Biovail shall take appropriate steps
to ensure that all use of the Licensed Mark and the Product Trade Dress by
Biovail shall cease; provided, however, that Biovail shall be permitted
to use the Licensed Mark and the Product Trade Dress until the earlier of (i) the
depletion of all Product and associated advertising materials, brochures and
the like remaining in its possession (provided that Biovail will use its
commercially reasonable efforts to promptly deplete such Products and materials
in its possession), and (ii) ninety (90) days following the date on which
it receives notice of the termination.

 

8.                                       Infringement
and Defense.

 

(a)                                  Third-Party
Infringement.  GSK and
Biovail shall each provide the other with prompt notice of any infringement of
the Licensed Mark or the Product Trade Dress by any third party in the
Territory of which they become aware. 
Biovail, at its sole discretion, shall have the first option, {***}†, to bring, prosecute and
settle an enforcement action against such third party for infringement of
the Licensed Mark or the Product Trade Dress in the Territory.  GSK shall provide Biovail with any reasonably
requested assistance in connection with such proceedings.  Any 

 

† Represents
material which has been redacted and filed separately with the Securities and
Exchange Commission pursuant to a request for confidential treatment pursuant
to Rule 24b-2 under the Securities Exchange Act of 1934, as amended.

 

6

 

settlement or award of
expenses, damages or judgments, whether direct or indirect, recovered through
any proceedings brought by Biovail {***}†.

 

(b)                                 Third-Party
Claims.  Any expenses, damages, or
judgments (including attorney’s fees) in connection with claims alleging
trademark infringement involving the use by Biovail of the Licensed Mark and
the Product Trade Dress other than as permitted under this Agreement shall be
the responsibility of GSK.

 

(c)                                  Action by GSK.  In the event Biovail determines not to
prosecute a claim against a third party (as set forth in Section 8(a)), then
GSK may elect, at {***}†, to bring and
prosecute an action against such a third party for infringement of the Licensed
Mark and the Product Trade Dress in the Territory; provided, however,
that GSK shall not settle or compromise any such claim or action, nor make any
admission, that would have an adverse effect on Biovail’s rights hereunder,
without the prior written consent of Biovail, which consent shall not be
unreasonably withheld, conditioned or delayed. 
Any award of expenses, damages or judgments, whether direct or indirect,
recovered through any proceedings brought by GSK {***}†.

 

9.                                       No Warranties.  Except as specifically stated in the APA
regarding the Licensed Mark and the Product Trade Dress, GSK makes no
representation or warranty of any kind regarding the Licensed Mark or the
Product Trade Dress or Biovail’s use thereof.

 

10.                                 Indemnification. 
Each party (the “Indemnifying Party”) agrees to indemnify, defend, save
and hold harmless, and hereby does indemnify, defend, save and hold harmless,
the other party and its directors, officers, agents and employees (the “Indemnitees”)
from and against any and all liabilities, claims, causes of actions, suits,
damages and expenses (including reasonable attorneys’ fees) for which the
Indemnitees or any Indemnitee may become liable or may incur or be compelled to
pay in any action or claim, for or by 

 

† Represents
material which has been redacted and filed separately with the Securities and
Exchange Commission pursuant to a request for confidential treatment pursuant
to Rule 24b-2 under the Securities Exchange Act of 1934, as amended.

 

7

 

reason of the Indemnifying Party’s breach of its
applicable obligations and agreements set forth in this Agreement.

 

11.                                 Entire
Agreement.  This
Agreement, together with the applicable provisions of the APA, constitute the
entire agreement and understanding between the parties with respect to the
subject matter hereof, and supersedes and cancels any and all previous
agreements or understandings, whether written or oral, with respect to the
subject matter.  To the extent there are
inconsistent provisions in this Agreement and the APA concerning Biovail’s use
of the Licensed Mark and/or the Product Trade Dress, this Agreement governs.

 

12.                                 Governing Law;
Venue.  This Agreement shall be
governed by and interpreted in accordance with the laws of the State of New York
without reference to choice of law principles that would dictate the
application of a law of another jurisdiction. 
Any legal suit, action or proceeding arising out of or relating to this
Agreement shall be commenced in the United States District Court for the
Eastern District of New York; provided, however, that if a court proceeding is
brought as a third party action as part of a proceeding in a different venue,
either party may initiate such third party action against the other party in
such venue.

 

13.                                 No Agency or
Partnership Between GSK and Biovail.  Nothing in this Agreement or any of the
transactions, obligations or relationships contemplated hereby shall, in and of
itself, constitute GSK or Biovail as the agent, employee, franchisee. or legal
representative for the other for any purpose whatsoever, nor shall any party to
this Agreement hold itself out as such. 
This Agreement does not create and shall not be deemed to create a
relationship of partners, joint venturers, associates franchisee/franchisor, or
principal-and-agent between Biovail and GSK, and each of the parties
acknowledges that each is acting as a principal hereunder.

 

14.                                 Further
Assurances.  From time
to time after the Effective Date, GSK and Biovail shall execute and deliver all
such additional instruments, licenses and certificates and shall take all such
other actions as Biovail or GSK, as the case may be, may reasonably 

 

8

 

request in connection with
the consummation of this Agreement and effecting the intent and purpose hereof.

 

15.                                 Modifications.  This Agreement may not be modified except by
an instrument in writing, signed by an authorized representative of each party.

 

16.                                 Succession and
Assignment.  Except as
set forth in Section 2 of this Agreement, this Agreement may not be
assigned, and the rights and obligations hereunder may not be licensed,
sublicensed, subcontracted or delegated, without the prior written consent of
GSK, which shall not be unreasonably withheld, delayed or conditioned.

 

17.                                 Waiver.  The waiver of
any right to which a party is entitled under this Agreement shall not be
effective unless in writing and signed by the party against whom the waiver is
sought to be enforced, and shall not constitute a waiver of any subsequent
right to which the party would otherwise be entitled.

 

[Signature Page Follows]

 

9

 

 

IN WITNESS WHEREOF, the parties have caused this Trademark License
Agreement to be executed in their respective corporate names by their officers
duly authorized thereto, all as of the Effective Date.

 

	
  SMITHKLINE BEECHAM CORPORATION D/B/A
  GLAXOSMITHKLINE

  	
   

  	
  BIOVAIL LABORATORIES INTERNATIONAL SRL

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ William J. Mosher

  	
   

  	
  By:

  	
  /s/ Michel Chouinard

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Printed Name:

  	
  William J. Mosher

  	
   

  	
  Printed Name:

  	
  Michel Chouinard

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
  Vice President & Secretary

  	
   

  	
  Title:

  	
  Chief Operating Officer

  

 

 

Exhibit 1

 

TRADEMARK GUIDELINES FOR WELLBUTRIN XL®

 

A.                                    GIVE PROPER NOTICE OF TRADEMARK RIGHTS

 

1.                                       Notice Symbols - A proper trademark
notice should follow the mark.  Use the “R-in-a-circle”
symbol (®) in close proximity to the mark. 
Typically, the symbol is in superscript font immediately following the
mark.

 

This should be followed on each page if the topic is
different and as often as is practical.

 

2.                                       Legal Notice:  In any product packaging, advertising
material or article, include the following:

 

WELLBUTRIN XL® is a federally registered trademark of
SmithKline Beecham Corporation.

 

B.                                    USE TRADEMARKS AS ADJECTIVES, FOLLOWED BY THE COMMON
DESCRIPTIVE NAME (NOUN) OF THE PRODUCT.

 

Example:

Wellbutrin XL® tablets

 

The word “brand,” after a mark and before the generic
product name, further guards against improper use.

 

Examples:

WELLBUTRIN XL® brand medication

 

C.                                    MAKE
TRADEMARKS STAND OUT FROM SURROUNDING TEXT

 

The trademark should always be used in a manner that will
distinguish it from the surrounding text. 
Trademarks should be CAPITALIZED, underlined, italicized, placed 

 

 

in “quotation marks,” or depicted in boldface type,
whenever they appear in printed or electronic media.

 

Example:

WELLBUTRIN XL® antidepressant medication

 

D.                                    NEVER
MAKE TRADEMARKS PLURAL OR POSSESSIVE

 

Since a trademark is not a noun, it should never be used in
the plural form.  Instead pluralize the common
nouns they describe.

 

Examples:

Correct:  Two
Wellbutrin® tablets

Incorrect:  Two
Wellbutrins

 

E.                                      “AFFIX”
TRADEMARKS TO PACKAGING

 

In order for trademark rights to be created and maintained,
a mark must be “affixed” to a specific product so that consumers can see the
mark when making their purchasing decisions. 
Trademarks are affixed by applying them directly to a product, to
containers in which the product is packaged, or to tags or labels attached to
the product.  Trademarks also can appear
in catalogs and online marketing if the marks are used prominently in
association with a picture of the goods and if ordering information is also
provided.

 

F.                                      DO NOT
COMBINE THE WELLBUTRIN XL® TRADEMARK WITH OTHER MARKS

 

The Trademark should stand on its own and should never be
combined with or presented in close proximity to the trademark of any other
company.  Further, the Trademark should
not be used in a manner that might create the impression it is owned by any
company other than GSK or that it is related to another mark.

 

 

G.                                    DO NOT
USE A GSK TRADEMARK IN A MANNER INCONSISTENT WITH ITS BRAND IMAGE

 

The Trademark represents a unique product identity and is
an important symbol of GSK’s goodwill. 
Accordingly, all marketing and promotional materials should utilize the
relevant Trademark in a manner consistent with the product image.  NEVER use the Trademark in a manner that
makes false or unsubstantiated claims, implies immoral or improper conduct or
is otherwise disparaging to our company or its products.  Further, take affirmative steps to only
present the Trademark in a manner consistent with the product image.

 

H                                       FAITHFULLY REPRODUCE THE LOGO TO MATCH
STANDARDS

 

Logos must be used
consistently, to present a recognizable visual image that consumers can rely
on.  Please ensure that all reproductions
of any Logos are in correct proportion, of good resolution and, when colors are
involved, include all of the correct colors as established by GSK’s Style
Guide, which is attached.

 

I                                            GSK hereby agrees and acknowledges that Biovail’s use of
the Licensed Mark on the Product packaging (including, without limitation, the
package inserts) in a manner consistent with GSK’s use as of the Effective Date
of such Licensed Mark on the Product packaging (including, without limitation,
the package inserts) will be deemed to comply with these Trademark Guidelines.

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