Exhibit 10.126
 
FISCAL YEAR 2003 SENIOR EXECUTIVE BONUS PLAN
 
(1).
 
Participants

 
Glenn Cooper (President), Mark Butler (Executive Vice President), Michael Rogers
(Executive Vice President), and Bobby Sandage (Executive Vice President).
 
(2).
 
Maximum Available

 
Base Bonus Pool: Up to 60% of Glenn Cooper’s base salary; up to 50% of the base
salaries of the Executive Vice Presidents (Messrs. Butler, Rogers, and Sandage)
 
(Base Salary is defined as the Base Salary at the time bonuses are paid.)
 
(3).
 
Bonus Pool

 
The amount of Base Bonus Pool received will be calculated based on the following
Performance Areas: (a) Business Development; (b) R&D Clinical Development; (c)
Acquisition/In-licensing; (d) Common Stock Performance; and (e) Corporate
Finance. The relative weighting of each area has been determined by management
and the Compensation Committee, and the total of all areas in Section 4 is equal
to 100% of the Base Bonus Pool.
 
The allocation of the pool will be made by the President to the other
participants based on participant’s performance particularly as it relates to
his objectives for the year as jointly established with the President. The
President may allocate any amount to any Executive Vice President, including
none, but he may not exceed the pool for each individual (50%).
 
The allocation of the President’s pool will be made at the discretion of the
Board of Directors.
 
(4).
 
Computation of Performance Areas

 

    
Goal

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Percentage of Total

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a.
  
Business Development
    
20%
    
-Complete a development/marketingpartnership for Trospium on terms approved by
the
Boardof Directors
      
b.
  
R&D/Clinical Development (#1)
    
20%
    
-Submit an NDA for Trospium that is accepted for filing by the FDA
      
c.
  
R&D/Clinical Development (#2)
    
5%
    
-Begin a Phase I or Phase II clinical trial for CT-3 or Dersalazine
      
d.
  
R&D/Clinical Development (#3)
    
15%
    
-Begin a Phase III clinical trial for citicoline
      
e.
  
Acquisition/In-license
    
5%
    
-Acquire or in-license a significant new asset (significance to be determined by
the Compensation Committee)
      
f.
  
Common Stock Performance
    
20%
    
-All or a portion of this goal will be earned based on the higher of the
formulas derived from either the (a) relative stock performance of Indevus’
Common Stock during the fiscal year or (b) the actual percentage increase in
Indevus’ Common Stock during the fiscal year. Since achievement of a large
increase in Indevus’ Common Stock either over an Index or over its price at the
beginning of the fiscal year is beneficial to the Company’s shareholders, the
calculation is made based on the higher one.
      

1

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% of Performance Area IDEV

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IDEV% pts. Increase over initial IDEV price
% pts. above Index

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25%
  
50%  
50%
  
75%  
75%
  
100%
100%
  
150%

 
The Index is calculated based on the publicly available AMEX Biotechnology Index
(or close equivalent if unavailable).
 
In order to capture the return to shareholders during the fiscal year, the
calculation of the percentage points increase above Index and the percentage
points increase over IDEV stock during the year will be made from the average of
two calculations: (1) from 10/1/02 to 3/31/03 (six months) and (2) from 10/1/02
to 9/30/03 (12 months). Due to the potential for short term news driven
fluctuations in stock price, the average of the closing common stock price for
the five trading days up to and including 9/30/02, 3/31/03 and 9/30/03 will be
used instead of the closing common stock price on that day.
 
g.
 
Corporate Finance 15%

 
-Ensure cash on hand at end of fiscal year is sufficient to last for at least
the following 12 months—50% of goal.
 
-Ensure cash on hand at end of fiscal year is sufficient to last for at least
the following 18 months—100% of goal.
 
(5).
 
Additional Goal – Business Development

 
This additional goal would be over and above any bonuses earned pursuant to
Sections 2, 3, 4 and 6. Out-license a second product to a development/marketing
partner on terms approved by the Board of Directors. Achievement of this goal
will result in a bonus of 20% of base salary.
 
(6).
 
Additional Goal – Strategic Transaction

 
This additional goal would be over and above any bonuses earned pursuant to
Sections 2, 3, 4 and 5. Complete a transaction (exclusive of the goals described
in 4(a), 4(e), and 5 above), on terms approved by the Board of Directors, that
significantly enhances long-term shareholder value. Achievement of this goal
will result in a bonus of 20-60% of base salary, at the discretion of the
Compensation Committee.
 
(7).
 
Calculation and Payment

 
A recommended calculation of the bonus will be made by management and will be
reviewed and approved by the Compensation Committee. Bonuses may be paid
periodically during the fiscal year upon attainment of goals, but not later than
October 31, 2003. Payment will be made only to recipients who are still
employees of the Company at the time of payment of the bonuses or October 31,
2003, whichever is earlier.

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