Exhibit 10.13






Exhibit 10.13




eResearchTechnology, Inc.




2010 Bonus Plan




Set forth below is a summary of the eResearchTechnology, Inc. (“ERT” or the “Company”) 2010
Bonus Plan (the “2010 Plan”) approved by the Compensation Committee and ratified by the Board of
Directors at their respective meetings on February 23, 2010, to be effective for fiscal 2010.



The purpose of the 2010 Plan is to promote the interests of the Company and its stockholders
by providing employees with financial rewards upon achievement of specified business objectives, as
well as help us attract and retain employees by providing attractive compensation opportunities
linked to performance results. All of our employees are eligible to participate in the 2010 Plan,
subject in some cases to certain waiting periods and with the exception that certain sales
personnel participate in a separate commission incentive plan instead of the 2010 Plan.



Bonuses payable under the 2010 Plan are recommended by the Compensation Committee and
presented to the Board. Bonuses payable to eligible participants are based on a variety of
factors, including both objective and subjective criteria. The objective criteria consist of
targets for revenue, net income, the revenue projected to be generated by new contracts into which
we enter regardless of when we actually recognize the revenue (the “Contract Revenues”) and gross
profits of our ERT consulting group, defined as revenue less direct payments made to providers of
consulting services (the “Consulting Profits”). The subjective criteria consist of individual
performance goals and objectives.



The revenue and net income targets at which 2010 Plan participants would earn 100% of the
bonus opportunity attributable to those targets is within the range for revenues and net income
provided as guidance for 2010 in the Company’s press release issued on February 25, 2010. The
Board intends that the 2010 Plan participants earn the full bonus opportunity with respect to those
targets only if the Company executes its financial business plan and achieves superior performance
notwithstanding current economic conditions.



The Compensation Committee establishes the individual performance goals and objectives of the
President and Chief Executive Officer. The President and Chief Executive Officer establishes the
individual performance goals and objectives for the Company’s executive officers, subject to
approval by the Compensation Committee. Performance objectives for the remainder of the 2010 Plan
participants are set by departmental supervisors who establish the individual performance goals in
their respective departments for these participants.



Dr. McKelvey’s individual goals focus on executing key initiatives supporting our 2010
business plan, including implementing programs to increase centralization of ECGs, reviewing and
making recommendations regarding potential expansion opportunities, developing a health care
services strategy and growing our electronic patient reporting outcome


 


 









 





(“ePRO”)
business. Mr. Schneck’s individual goals consist primarily of enhancing the tax efficiency and cash flow
of our operations, conducting a review of our enterprise risk management, improving investor
relations, continuing to improve our planning and forecasting processes and actively supporting
corporate development activities. Individual goals of the remaining executive officers include
continuing to improve our quality audit and management systems, participating in our expanded sales
and marketing initiatives, improving the profitability of our consulting group, development of
strategic partnerships, integrating ePRO into our cardiac safety operations, continuous improvement
in customer service, project assurance, internal processes and operational efficiencies, and
technology improvements and enhancements. Individual performance goals for the remaining
participants in the 2010 Plan are in line with the individual goals of the executive officers.



Each participant in the 2010 Plan will be eligible to receive 50% to 150% of their 2010 bonus
opportunity that is allocable to each objective target category, based on the extent to which we
achieve the various specified targets. Amounts payable based on achievement of individual
performance objectives can range from 0-100% of the applicable bonus opportunity.



For individual performance goals, (i) the Compensation Committee or the Board, at the request
of the Compensation Committee after providing its recommendations to the Board, determines the
extent to which the goals have been achieved and any related bonus has been earned for the
Company’s President and Chief Executive Officer; (ii) the Compensation Committee or the Board, at
the request of the Compensation Committee after providing its recommendations to the Board,
determines the extent to which the goals have been achieved and any related bonus has been earned
for the remaining executive officers, after receiving the recommendation of the Company’s President
and Chief Executive Officer; and (iii) the participant’s departmental supervisor determines the
extent to which the goals have been achieved and any related bonus has been earned for the
remainder of the participants under the 2010 Plan.


 


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The bonus opportunities and the related performance targets for each of the Company’s
executive officers are as follows:



	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Percentage of Bonus Based On:	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Individual	 	 	 	 
	 	 	 	 	Bonus	 	 	 	 	 	 	Net	 	 	Performance	 	 	Contract	 
	Name	 	Position	 	Opportunity	 	 	Revenues	 	 	Income	 	 	Goals	 	 	Revenues	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Michael J. McKelvey, Ph.D
	 	President and Chief
Executive Officer	 	$	386,250	 	 	 	15	 	 	 	55	 	 	 	30	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Keith D. Schneck
	 	Executive Vice President
and Chief Financial Officer	 	$	149,350	 	 	 	15	 	 	 	55	 	 	 	30	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Joel Morganroth, MD (1)
	 	Chairman of the Board
and Chief Scientific Officer	 	$	237,500	 	 	 	 	 	 	 	 	 	 	 	100	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	John M. Blakeley
	 	Executive Vice President,
Sales and Marketing	 	$	129,547	 	 	 	10	 	 	 	30	 	 	 	20	 	 	 	40	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Thomas P. Devine
	 	Executive Vice President
and Chief Development Officer	 	$	137,500	 	 	 	15	 	 	 	55	 	 	 	30	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Amy Furlong
	 	Executive Vice President,
Cardiac Safety	 	$	145,000	 	 	 	15	 	 	 	55	 	 	 	30	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Jeffrey S. Litwin, MD
	 	Executive Vice President
and Chief Medical Officer	 	$	175,595	 	 	 	15	 	 	 	40	 	 	 	25	 	 	 	20	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Robert Brown
	 	Senior Vice President,
Stategic Partnerships	 	$	124,656	 	 	 	15	 	 	 	55	 	 	 	30	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	John B. Sory
	 	Senior Vice President,
Health Care Solutions	 	$	162,500	 	 	 	15	 	 	 	55	 	 	 	30	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	George Tiger
	 	Senior Vice President,
Global Sales	 	$	110,334	 	 	 	10	 	 	 	30	 	 	 	20	 	 	 	40	 








	 	 	 
	(1)	 	Under the terms of a Consultant Agreement between Joel Morganroth,
M.D., P.C. and the Company, Dr. Morganroth’s professional corporation
is entitled to an 80% commission of the net amounts we bill for Dr.
Morganroth’s services to the customers of the Company’s consulting
practice. These commissions are not included in the table above.





Bonuses are payable based on the extent to which annual targets have been achieved, with the
bonuses (if any) normally being paid within ninety (90) days after the end of the calendar year in
which the bonuses were earned. Bonuses normally will be paid in cash in a single lump sum, subject
to payroll taxes and tax withholdings, as applicable.



Notwithstanding the foregoing, the Compensation Committee retains the discretion under the
2010 Plan to adjust or recommend to the Board an adjustment to the amount of any bonus to be paid,
regardless of whether or the extent to which any of the objective criteria, including revenue, net
income, Contract Revenues and Consulting Profits, are achieved, and the Board retains the
discretion to make any such adjustment it deems appropriate.


 


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