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Exhibit 10.5  

  

 
 

Prometheus 2006 Management Bonus Plan    
    

        The Prometheus Management Bonus is designed to reward eligible employees for their contribution to the success of our overall business, while recognizing
individuals for their achievement against both performance and personal goals and objectives set at the beginning of the year. 

Terms:  

	1.
	Your
bonus tier for 2006 is set at X% of your annual base salary. Base salary is defined as your salary as of 12/31/06. (Exception: Refer to section 4(c), below.)

	2.
	Your
bonus is based on both Corporate and Individual performance. For 2006, the ratio will be: 

Y%
Corporate / Z% Individual 

	3.
	The
level of Corporate payout will be determined by the Prometheus Board of Directors. The individual portion of the payout will be determined by management, and will consider
(1) the level of achievement of your goals and objectives, as established by you and your manager at the beginning of the evaluation period, and (2) your overall performance for the
evaluation period, as determined by your annual performance appraisal rating for 2006. 

Employees
receiving an unsatisfactory rating ("5" in the current system) will not be eligible for a bonus, regardless of Corporate payout or individual goals and objectives completion. 

Note: If your goals and objectives are modified during the plan year, you must obtain agreement from your management and forward the revised goals and objectives to Human
Resources.

	4.
	Bonus
payments will be prorated based on time in position.

	a)
	Newly
hired employees will be prorated from their 2006 hire date.

	b)
	If
you move from one bonus tier to another during the calendar year, your bonus will be prorated according to the time in each position during the evaluation period.

	c)
	If
your salary changes as a result of a move to a position within a different bonus tier, the end of year bonus calculation will be split to reflect the respective salaries and bonus
tiers of each position.

	d)
	Pro-ration
for partial months will be calculated using the number of days in position for the partial month.

	5.
	Bonus
payments will be prorated for any time during the year an employee is not classified as an active employee.

	6.
	To
be eligible for a bonus, an employee must be hired on or before October 1, 2006.

	7.
	In
order to be eligible for a bonus, an employee must be of active status and in good standing on the date of bonus payout.

	8.
	Bonuses
will typically be paid in the first quarter of 2007.

	9.
	All
bonus payments are subject to applicable withholdings and taxes.

	10.
	All
bonuses are discretionary and subject to the Company's performance, financial condition and approval by the Board of Directors. 

Note: The Company reserves the right to terminate or modify the terms and conditions of this incentive at any time.

Prometheus 2006 Management Bonus Plan  

 Participation and Bonus Tier Levels  

	Position
 
	 	Bonus Tier
	 	% Corporate
	 	% Personal
	 
	President and CEO	 	50	%	100	%	0	%
	Sr. Vice President	 	40	%	75	%	25	%
	Vice President	 	30	%	75	%	25	%
	Sr. Director	 	25	%	50	%	50	%
	Director	 	20	%	50	%	50	%
	Associate Director	 	15	%	50	%	50	%
	Sr. Manager	 	10	%	25	%	75	%

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Exhibit 10.6  

  

 
 

Prometheus 2007 Management Bonus Plan    
    

The
Prometheus Management Bonus is designed to reward eligible employees for their contribution to the success of our overall business, while recognizing individuals for their achievement against both
performance and personal goals and objectives set at the beginning of the year. 

Terms:  

	1.
	Your
bonus tier for 2007 is set at X% of your annual base salary. Base salary is defined as your salary as of 12/31/07. If the 2008 merit increases are applied prior to
January 1, 2008, then the base salary shall be defined as salary prior to the 2008 merit increase.

	2.
	Your
bonus is based on both Corporate and Individual performance. For 2007, the ratio will be: 

Y%
Corporate / Z% Individual 

	3.
	The
level of Corporate payout will be determined by the Prometheus Board of Directors. The individual portion of the payout will be determined by management, and will consider
(1) the level of achievement of your goals and objectives, as established by you and your manager at the beginning of the evaluation period, and (2) your overall performance for the
evaluation period, as determined by your annual performance appraisal rating for 2007. 

Employees
receiving an unsatisfactory rating ("5" in the current system) will not be eligible for a bonus, regardless of Corporate payout or individual goals and objectives completion. 

Note: If your goals and objectives are modified during the plan year, you must obtain agreement from your management and forward the revised goals and objectives to Human
Resources.

	4.
	Bonus
payments will be prorated based on time in position.

	a)
	Newly
hired employees will be prorated from their 2007 hire date.

	b)
	If
you move from one bonus tier to another during the calendar year, your bonus will be prorated according to the time in each position during the evaluation period.

	c)
	Pro-ration
for partial months will be calculated using the number of days in position for the partial month.

	5.
	Bonus
payments will be prorated for any time during the year an employee is not classified as an active employee.

	6.
	To
be eligible for a bonus, an employee must be hired on or before October 1, 2007.

	7.
	In
order to be eligible for a bonus, an employee must be of active status and in good standing on the date of bonus payout.

	8.
	Bonuses
will typically be paid in the first quarter of 2008.

	9.
	All
bonus payments are subject to applicable withholdings and taxes.

	10.
	All
bonuses are discretionary and subject to the Company's performance, financial condition and approval by the Board of Directors. 

Note: The Company reserves the right to terminate or modify the terms and conditions of this incentive at any time.

Prometheus 2007 Management Bonus Plan  

 Participation and Bonus Tier Levels  

	Position
 
	 	Bonus Tier
	 	% Corporate
	 	% Personal
	 
	President and CEO	 	50	%	100	%	0	%
	Sr./ Vice President	 	40	%	75	%	25	%
	Vice President	 	30	%	75	%	25	%
	Sr. Director	 	25	%	50	%	50	%
	Director	 	20	%	50	%	50	%
	Associate Director	 	15	%	50	%	50	%
	Sr. Manager	 	10	%	25	%	75	%

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Exhibit 10.7  

 
 
 

Prometheus Laboratories Inc.    
    
    2008 Management Bonus Plan    
    
    Approved by the Board of Directors and/or
  Compensation Committee, effective November 8,
2007    

 
Prometheus Laboratories  

 2008 Management Bonus Plan  

The
Prometheus Laboratories 2008 Management Bonus Plan (the "Plan") is designed to offer incentive compensation to eligible employees by rewarding the achievement of corporate goals and specifically
measured individual goals that are consistent with and support overall corporate goals. The Bonus Plan is intended to create an environment where participants are focused on the achievement of both
corporate and departmental objectives. Cooperation between departments and individuals will be
required to achieve corporate objectives. Hence, corporate objectives represent a significant portion of the Plan in order to help foster improved teamwork and a more cohesive management team. 

Purpose of the Plan  

The
Plan is designed to: 

	•
	Provide
an incentive program to achieve overall corporate objectives and to enhance shareholder value.

	•
	Reward
those individuals who significantly impact corporate results.

	•
	Encourage
increased teamwork among all disciplines within Prometheus (the "Company").

	•
	Incorporate
an incentive program in the Company's overall compensation program to help attract and retain employees. 

Plan Governance  

The
Plan will be governed by the Compensation Committee (the "Compensation Committee") of the Board of Directors of the Company (the "Board"). The President and CEO of the Company will be responsible
for administration of the Plan. The Compensation Committee will be responsible for approving any incentive awards to officers of the Company and the Board of Directors will approve any incentive
awards to the President and CEO. 

Eligibility  

Employees
who may be eligible to participate in the Plan shall be selected at the sole discretion of the Company. To receive an bonus payment ("Award") under this Plan, a participant: (a) must
have been in an eligible position for at least three (3) consecutive months prior to the end of the Plan year and must remain continuously employed through the end of the Plan year and until
Awards are paid; (b) must be performing at a minimum level of a "Partially Meets Standard" (a rating of "4" in the current system) or higher at the time Awards are paid; and (c) must be
of active status and in good standing on the date the Award is paid. 

Corporate and Individual Performance  

Prior
to the beginning of the Plan year, the President and CEO will present to the board a list of the overall corporate objectives for the coming year, which are subject to approval by the Board. All
participants in the Plan will then develop a list of key individual objectives, which will be approved by the participants' direct managers. 

The
Plan is intended to provide incentive for the achievement of approved annual corporate and individual objectives. If an individual's objectives are modified during the plan year, he/she must
obtain written agreement from his/her management. 

For
all Plan participants, except the President and CEO, a portion of their incentive compensation will be based on corporate goal achievement and a portion will be based on individual achievement.
The 

1

 

relative
weight between Corporate and individual performance factors will vary based on levels within the organization. The weighting will be reviewed annually and be adjusted, as necessary or
appropriate. The weighting for 2008 will be as follows: 

	 
	 	Corporate
	 	Individual/Departmental
	 
	President and CEO	 	100	%	0	%
	Executive Vice Presidents, Sr. Vice Presidents, Vice Presidents	 	75	%	25	%
	Sr. Directors, Directors, Associate Directors	 	50	%	50	%
	Sr. Managers	 	25	%	75	%

Target Award Multiplier  

Bonus
Award target dollar amounts for each associate will be determined by applying a target award multiplier to the base salary of Plan participants. The following target award multipliers will be
used in implementing the Plan: 

	Position
 
	 	Target Award Multiplier (% of base salary)
	 
	President and CEO	 	50	%
	Senior Vice Presidents; Executive Vice Presidents	 	40	%
	Vice Presidents	 	30	%
	Sr. Directors	 	25	%
	Directors	 	20	%
	Associate Directors	 	15	%
	Sr. Managers	 	10	%

The
target award multiplier will be used to establish the target incentive award at the beginning of each year. 

If
an employee moves from one bonus tier to another during the calendar year, the bonus Award will be prorated according to the time in each position during the evaluation period. Proration for
partial months will be calculated using the number of days in position for the partial month. 

Payment of the Award  

The
Board will approve the level of funding for the Plan, based on its assessment of the overall achievement of Corporate objectives for 2008. A corporate award multiplier will be assigned, based on
the Board's assessment of company performance. 

The
Individual performance award multiplier is determined by the participant's management, and is tied to the individual's performance rating for the plan year. 

Payment
of Awards is generally made in the first quarter of the year following the plan year. 

Minimum and Maximum Payments  

Generally,
in order for any payment (Corporate or Individual) to be made to plan participants, the
Corporate funding must meet a minimum of 75%. In cases where the Corporate funding has not met the minimum threshold, the President and CEO will have, in his/her discretion, the ability to make a
discretionary award to an individual where recognition of exemplary performance is warranted. 

The
maximum multiplier for Corporate payout is 150%. 

The
maximum multiplier for Individual payout is 150%. 

2

 

Award Calculations  

The
actual award for an employee will be calculated by allocating the target incentive award between the Corporate and Individual goals, and then applying the Corporate ward multiplier to the
Corporate amount, and the Individual performance award multiplier to the Individual amount. 

Bonus
Award calculations will be based on the participant's base salary as of December 31, 2008. If the 2009 annual merit increases are applied prior to January 1, 2009, then the base
salary shall be defined as salary prior to the 2009 merit increase.

Participants
who have been in an eligible position for less than a year, but who hold an eligible position for at least three months prior to the end of the Plan year and remain continuously employed
through the end of the Plan year, will receive a pro-rata bonus based on the portion of the Plan year they hold an eligible position. Proration will be calculated on a daily basis. 

Bonus
award payments will also be prorated for any time during the year an employee is not classified as an active employee. Proration for partial months will be calculated using the number of days as
an active employee for the partial months. 

Form of Incentive Award Payments  

Bonus
award payments will be made in cash, and are subject to applicable withholdings and taxes. 

Termination  

A
Plan participant whose employment terminates voluntarily prior to the payment of the Awards will not be eligible to receive an Award. If a participant's employment is terminated involuntarily during
the calendar year, or prior to payment of Awards, it will be at the absolute discretion of the Company and/or Board whether or not any Award payment is made. 

Company's Absolute Right to Alter or Abolish the Plan  

The
Company reserves the right in its absolute discretion to abolish the Plan at any time or to alter the terms and conditions under which awards will be paid. Such discretion may be exercised any
time before, during, and after the Plan year is completed. No participant shall have any vested right to receive any payment until actual delivery of such compensation. 

Employment Duration/Employment Relationship  

This
Plan does not, and Company policies and practices in administering this Plan do not, constitute an express or implied contract or other agreement concerning the payment of any award or the
duration of any participant's employment with the Company. The employment relationship of each participant is "at will" and may be terminated at any time by the Company or by the participant, with or
without cause. 

3

CONFIDENTIAL

	DATE:	 	 
	 	 
	

TO:	
 	

Human Resources	
 	

 
	

FROM:	
 	

 
	
 	

 

Prometheus Laboratories

2008 Management Bonus Plan  

This
is to acknowledge that I have received a copy of the 2008 Management Bonus Plan. 

	Name:	 	 
 (print)	 	Date:	 	 

	

 	
 	

 
 (signature)	
 	

 	
 	

 

Please return signed copy to Human Resources Department. 

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