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                                                                 Exhibit 10.118

                  FISCAL YEAR 2001 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                                PERCENTAGE OF TOTAL

   a.    BUSINESS DEVELOPMENT                                     17.5%
         -Out-license one product to a development/marketing partner on terms
         approved by the Board of Directors

   b.    R&D/CLINICAL DEVELOPMENT (#1)                             17.5%
         -Be 50% enrolled in the Phase 3 clinical trial for Trospium by the end
         of the fiscal year 2001

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                  GOAL                                      PERCENTAGE OF TOTAL

   c.    R&D/CLINICAL DEVELOPMENT   (#2)                           17.5%
         -Secure selection of PRO2000 as one treatment arm in NIH Phase 2/3
         study
         -Phase 2/3 study initiated for PRO2000

   d.    ACQUISITION/IN-LICENSE                                    17.5%
         -Acquire or in-license a significant new asset (significance to be
         determined by the Compensation Committee)

   e.    COMMON STOCK PERFORMANCE 15% -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 Interneuron's Common Stock during the
         fiscal year or (b) the actual percentage increase in Interneuron's
         Common Stock during the fiscal year. Since achievement of a large
         increase in Interneuron's 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.

<TABLE>
<CAPTION>
                                    IPIC % PTS. INCREASE OVER INITIAL IPIC PRICE
         % OF PERFORMANCE AREA            IPIC %  PTS. ABOVE INDEX

<S>                                        <C>
                  25%                            10%
                  50%                            20%
                  75%                            30%
                  100%                           40%

</TABLE>

         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 IPIC stock during the year will be made
         from the average of two calculations: (1) from 10/1/00 to 3/31/01 (six
         months) and (2) from 10/1/00 to 9/30/01 (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 9/30/00, 3/31/01 and 9/30/01 will be used instead of
         the closing common stock price on that day.

   f.    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.

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(5).     ADDITIONAL GOAL - REDUX LITIGATION

         This additional goal would be over and above any bonuses earned
         pursuant to Sections 2, 3, 4, and 6. Achieve substantial mitigation of
         the Company's exposure to Redux litigation. Achievement of this goal
         will result in a bonus of 20-60% of base salary, at the discretion of
         the Compensation Committee.

(6).     ADDITIONAL GOAL - BUSINESS DEVELOPMENT

         This additional goal would be over and above any bonuses earned
         pursuant to Sections 2-5. 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 20-40% 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, 2001. 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, 2001, whichever is earlier.

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