EXHIBIT 10.2

 

FISCAL YEAR 2006 SENIOR EXECUTIVE BONUS PLAN

 

(1). Participants

 

Executive Vice Presidents

 

(2). Maximum Available

 

Up to 50% of the base salaries of the Executive Vice Presidents.

 

(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: Business Development, R&D Clinical Development, Sales &
Marketing, and 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%).

 

(4). Computation of Performance Areas

 

   

Goal

--------------------------------------------------------------------------------

   Percentage of Total

--------------------------------------------------------------------------------

  a.   In-license or acquire one late-stage or marketed urology/men’s health
product on terms approved by the Board of Directors.    25 % b.   Acquire one
marketed urology/men’s health product for co-promotion by our specialty sales
force on terms approved by the Board of Directors. (Goal can also be satisfied
by acquiring a second product under terms of 4a).    25 % c.   Out-license one
Indevus product under terms approved by Board of Directors.    10 % d.  
Complete enrollment in two Phase 3 Sanctura XR trials.    15 % e.   Submit NDA
for Nebido    15 % f.   Cash management:    10 %

 

Page 1

--------------------------------------------------------------------------------

– 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). 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, 2006. 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,
2006, whichever is earlier.

 

Page 2