**Exhibit 10.5.2**

 

**BIO-REFERENCE LABORATORIES, INC.**

**2005 SENIOR MANAGEMENT INCENTIVE BONUS PLAN**

**TERMS OF THE PLAN**

 

**Terms**

 

A.                                   The 2005 SeniorManagement Incentive Bonus Plan will provide bonuses to the employeeparticipants based on Operating Income as a percentage of Net Revenues asreported on the Corporation’s audited consolidated financial statements forfiscal 2005, subject, however, to the exception defined in B herein for Class IIemployee participants.

 

B.                                     For Class IIemployee participants, bonuses under the Plan will be based on AdjustedOperating Income for fiscal 2005 as a percentage of Adjusted NetRevenues for such fiscal year. Adjusted Net Revenues and Adjusted OperatingIncome will be determined by the Corporation’s CEO and CFO acting jointly, bydeducting the total net revenues and the total cost of services and/or generaland administrative expenses attributable to the Corporation’s PSIMedicabusiness unit in fiscal 2005 from the Corporation’s Net Revenues and cost ofservices and/or general and administrative expenses as reported on theCorporation’s audited consolidated financial statements for such fiscal year.

 

C.                                     Bonus for Class Iemployee participants 

 

In the event that Operating Income as a percentage of Net Revenues for fiscal2005 equals or exceeds 9%, each Class I employee participant will beentitled to be paid a bonus equal to the following percentage of his annualgross wages for calendar 2005 (excluding commissions, bonuses,option exerciseincome, auto expense charge-backs and any unearned income).

 
| **If the Operating Income**    | ** ** | ** **    | ** ** |
|--------------------------------|------------|---------------|------------|
| **Percentage of Net Revenues** | ** ** | ** **    | ** ** |
| **Is Equal to or**             | ** ** | **And**       | ** ** | **Bonus as a Percentage** | ** ** |
| **Greater Than**               | ** ** | **Less Than** | ** ** | **of Annual Gross Wages** | ** ** |
|                           |       |          |       |   |   |
| 9.00                           | %          | 9.25          | %          | 5 | % |
| 9.25                           | %          | 9.50          | %          | 10 | % |
| 9.50                           | %          | 10.00         | %          | 15 | % |
| 10.00                          | %          | 10.50         | %          | 20 | % |
| 10.50                          | %          | 11.00         | %          | 25 | % |
| 11.00                          | %          | 11.50         | %          | 30 | % |
| 10.50                          | %          | 12.00         | %          | 35 | % |
| 12.00                          | %          | 12.50         | %          | 40 | % |
| 12.50                          | %          | 13.00         | %          | 45 | % |
| 13.00                          | %          | —        |       | 50 | % |
|                                |            |               |            |  |  |  |  |

 

D.            Bonus for Class IIemployee participants

 

In the event that Adjusted Operating Incomeas a percentage of Adjusted Net Revenues for fiscal 2005 equals or exceeds 9%,each Class II employee participant will be entitled to be paid a bonus equal tothe following percentage of his or her annual gross wages for calendar 2005 (excludingcommissions, bonuses, option exercise income, auto expense charge-backs and anyunearned income.)

 

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| **If the Adjusted Operating Income**    | ** ** | ** **    | ** ** |
|-----------------------------------------|------------|---------------|------------|
| **Percentage of Adjusted Net Revenues** | ** ** | ** **    | ** ** |
| **Is Equal to or**                      | ** ** | **And**       | ** ** | **Bonus as a Percentage** | ** ** |
| **Greater Than**                        | ** ** | **Less Than** | ** ** | **of Annual Gross Wages** | ** ** |
|                                    |       |          |       |   |   |
| 9.00                                    | %          | 9.25          | %          | 5 | % |
| 9.25                                    | %          | 9.50          | %          | 10 | % |
| 9.50                                    | %          | 10.00         | %          | 15 | % |
| 10.00                                   | %          | 10.50         | %          | 20 | % |
| 10.50                                   | %          | 11.00         | %          | 25 | % |
| 11.00                                   | %          | 11.50         | %          | 30 | % |
| 10.50                                   | %          | 12.00         | %          | 35 | % |
| 12.00                                   | %          | 12.50         | %          | 40 | % |
| 12.50                                   | %          | 13.00         | %          | 45 | % |
| 13.00                                   | %          | —        |       | 50 | % |

 

E.                                      The maximum bonusto be paid pursuant to the Plan to any Class I or Class II employeeparticipant will not exceed 50% of his or her annual gross wages for calendar2005 (excluding commissions, bonuses, option exercise income, auto expensecharge-backs or any unearned income),regardless of the amount of OperatingIncome or Adjusted Operating Income. Furthermore, to qualify for a bonus underthe Plan, the employee participant must be a full-time employee of theCorporation on the last day of fiscal 2005.

 

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