Document:

exv10w3

 

Exhibit 10.3

[Performance-based Vesting]

LIBERTY PROPERTY TRUST

2008 LONG TERM INCENTIVE PLAN

TARGET UNIT AWARD AGREEMENT

     This TARGET UNIT AWARD AGREEMENT (the “Award Agreement”), dated as of __ __, 20___
(the “Award Date”) is delivered by Liberty Property Trust., a Maryland real estate investment trust
(the “Company”) to ___(the “Participant”).

RECITALS

     A. The Liberty Property Trust 2008 Long Term Incentive Plan (the “Plan”) provides for the
grant of Target Units.

     B. The Compensation Committee of the Board of Directors (the “Committee”) has decided to make
a Target Unit Award to the Participant as an inducement for the Participant to promote the best
interests of the Company and its shareholders. The Participant may receive a copy of the Plan by
contacting ___, at ___.

     NOW, THEREFORE, the parties to this Award, intending to be legally bound hereby, agree as
follows:

1. Grant of Target Units. Subject to the terms and conditions set forth in this Award
Agreement, the Company hereby grants to the Participant up to an aggregate maximum of___units
(the “Target Units”), based on the achievement of the performance goals established by the
Committee and set forth on the attached Exhibit A (the “Performance Goals”). Each Target
Unit shall be a phantom right and shall be equivalent to one common share of beneficial ownership,
par value $0.001 per share, of the Company (the “Common Share”) on the Redemption Date (as defined
below). The Target Units granted hereunder are intended to qualify as “qualified performance-based
compensation” under section 162(m) of the Internal Revenue Code of 1986, as amended (the “Code”).
The number of Target Units set forth in this Paragraph 1 is the maximum number of Common Shares
payable under this Award Agreement. The actual number of Common Shares that may be paid to the
Participant pursuant to this Award Agreement will depend on whether the Performance Goals are
achieved and the satisfaction of other conditions as set forth below. The Committee shall not have
discretion to increase the number of Common Shares payable based upon achievement of the
Performance Goals, but the Committee may reduce the number of Common Shares that are payable based
upon the Committee’s assessment.

2. Target Unit Account. The Company shall establish and maintain a Target Unit account as
a bookkeeping account on its records (the “Target Unit Account”) for the Participant and shall
record in such Target Unit Account the number of Target Units granted to the Participant. The

 

Participant shall not have any interest in any fund or specific assets of the Company by reason of
this grant or the Target Unit Account established for the Participant.

3. Vesting.

     (a) Except as provided in subparagraph (b) below, in order to become vested in the Target
Units, the Participant must continue to be employed by, or providing service to the Employer (as
defined in the Plan) from the Award Date through the Redemption Date; provided however, that the
number of Target Units that shall become vested shall be determined based on satisfaction of the
Performance Goals. No vesting of the Target Units shall occur until the Committee has certified
the level of achievement of the Performance Goals, which certification shall occur as soon as
administratively practicable after the end of the applicable performance period, but not later than
sixty (60) days following the end of the applicable performance period (the “Certification Date”).
Any portion of the Target Units that do not become vested because of the failure to fully satisfy
the Performance Goals shall be forfeited as of the Certification Date and the Participant shall
have no rights with respect to redemption of the portion of the Target Units that have become
forfeited.

     (b) Except as provided in subparagraph (c) below, if at any time prior to the Certification
Date the Participant’s employment or service with the Employer terminates for any reason other than
death, Disability (as defined in the Plan) or Retirement (as defined in the Plan), all of the
Target Units subject to this Award Agreement will be immediately forfeited and the Participant
shall have no rights with respect to the redemption of any portion of the Target Units.

     (c) Notwithstanding any provision to the contrary herein, if the Participant’s employment or
service with the Company is terminated on account of the Participant’s death, Disability or
Retirement, the Participant shall continue to earn the Target Units based on the level of
achievement of the Performance Goals as certified by the Committee, and shall receive payment of
the Target Units as set forth herein. In order for the Participant to continue to earn the Target
Units following the Participant’s termination of employment or service on account of Retirement as
set forth in this subparagraph (c), the Committee must make a determination, evidenced by an
affirmative action on the part of the Committee, that such termination of employment or service
constitutes termination of employment or other active for-profit service that is undertaken in good
faith by the Participant, meaning, among other factors that may be taken into account in the sole
discretion of the Committee, that the termination of employment or service is determined by the
Committee, in its sole discretion, (i) not to be materially detrimental to the business interests
of the Company, (ii) not to result in a violation of any obligations of the Participant to the
Company, and (iii) to be motivated by the Participant’s intention, following such termination, to
cease working on a full-time basis, for the Company or any other employer, or to provide services,
whether on a consulting, independent contractor, employee or other basis to any entity engaged in
the business of owning, operating or developing commercial real estate. Absent such an affirmative
action on the part of the Committee, the vesting of the Target Units referred to in this
subparagraph (c) shall not occur.

4. Redemption. The Target Units shall be redeemed by the Company on the Certification Date
or as soon as administratively practicable thereafter, but not later than thirty (30) days
following the Certification Date (the “Redemption Date”). On the Redemption Date, all Target

2

 

Units
that have vested will be redeemed and converted to an equivalent number of Common Shares, and the
Participant shall receive a single sum distribution of the Common Shares, which shall be issued
under the Company’s Share Incentive Plan (as defined in the Plan) (or a successor plan thereto).
All redemptions pursuant to this Award Agreement and the Plan shall be deemed a separate payment
for purposes of section 409A of the Code.

5. Dividend Equivalents. Unless otherwise determined by the Committee, cash, Common
Shares or other property equal in value to the dividends paid with respect to the Common Shares
underlying the Target Units (the “Dividend Equivalents”) shall be payable subject to the same
Performance Goals and terms as the Target Units to which they relate. Dividend Equivalents shall
be credited with respect to the Target Units to the Participant’s Target Unit Account from the
Award Date until the Redemption Date. If and to the extent that the Target Units are forfeited,
all related Dividend Equivalents shall also be forfeited. In no event shall the Participant accrue
more than $___of such Dividend Equivalents during any calendar year.

6. Non-Transferability of Target Unit Award. No Target Units or Dividend Equivalents
awarded to the Participant under this Award Agreement may be transferred, assigned,pledged,
encumber or exercised by the Participant and a Target Unit shall be redeemed and a Dividend
Equivalent distributed during the Participant’s lifetime only for the benefit of the Participant .
Any attempt to transfer, assign, pledge, or encumber the Target Units or Dividend Equivalent by the
Participant shall be null, void and without effect.

7. No Rights as Shareholder. The Participant shall not have any rights as a shareholder of
the Company, including the right to any cash dividends (except as provided in Paragraph 5), or the
right to vote, with respect to any Target Units.

8. Change of Control. The provisions set forth in the Plan applicable to a Change in
Control (as defined in the Plan) shall apply to the Target Units. In the event of a Change in
Control, the Committee may take such actions as it deems appropriate in accordance with the terms
of the Plan and consistent with the requirements of section 409A of the Code.

9. Incorporation by Reference; Definitions. This Award Agreement shall be subject to the
terms, conditions and limitations of the Plan, which are incorporated herein by reference, and in
all respects shall be interpreted in accordance with the Plan. In the event of any contradiction,
distinction or difference between this Award Agreement and the terms of the Plan, the terms of the
Plan will control. Except as otherwise defined in this Award Agreement, the terms used in this
Award Agreement shall have the meanings set forth in the Plan. The grant is subject to the
interpretations, regulations and determinations concerning the Plan established from time to time
by the Committee in accordance with the provisions of the Plan. The Committee shall have the
authority to interpret and construe the grant pursuant to the terms of the Plan, its decisions
shall be conclusive as to any questions arising hereunder, and the Participant’s acceptance of this
grant is the Participant’s agreement to be bound by the interpretations and decisions of the
Committee with respect to this grant and the Plan

3

 

10. Restrictions on Issuance or Transfer of Shares of Common Stock.

     (a) The obligation of the Company to deliver Common Shares upon the redemption of the Target
Units shall be subject to the condition that if at any time the Committee shall determine in its
discretion that the listing, registration or qualification of the Common Shares upon any securities
exchange or under any state or federal law, or the consent or approval of any governmental
regulatory body is necessary or desirable as a condition of, or in connection with, the issue of
Common Shares, the Common Shares may not be issued in whole or in part unless such listing,
registration, qualification, consent or approval shall have been effected or obtained free of any
conditions not acceptable to the Committee. The issuance of the shares of Common Shares to the
Participant on the Redemption Date and the payment of cash to the Participant pursuant to this
grant is subject to any applicable taxes and other laws or regulations of the United States or of
any state having jurisdiction thereof.

     (b) As a condition to receive any Common Shares on the Redemption Date, the Participant agrees
to be bound by the Company’s policies regarding the transfer of the Common Shares and understands
that there may be certain times during the year in which the Participant will be prohibited from
selling, transferring, pledging, donating, assigning, mortgaging, hypothecating or otherwise
encumbering the Common Shares.

     (c) On, or as soon as administratively practicable following the Redemption Date, a
certificate representing the Common Shares that are redeemed shall be issued to the Participant.

11. Withholding. The Participant is required to pay to the Company, or make other
arrangements satisfactory to the Employer to provide for the payment of, any federal, state, local
or other taxes that the Employer is required to withhold with respect to the grant, vesting or
redemption/distribution of the Target Units and Dividend Equivalents. Subject to Committee
approval, the Participant may elect to satisfy any tax withholding obligation of the Company with
respect to the redemption of the Target Units by having Common Shares withheld up to an amount that
does not exceed the minimum applicable withholding tax rate for federal (including FICA), state,
local and other tax liabilities.

12. No Rights to Continued Employment or Service. The terms and conditions of this Award
Agreement shall not be deemed to constitute a contract of employment between the Company or the
Employer and the Participant. Such employment continues to be an “at will” employment relationship
that can be terminated at any time for any reason, or no reason, with or without Cause (as defined
in the Plan), and with or without notice, unless otherwise expressly provided for in the
Participant’s Employment Agreement (as defined in the Plan). Nothing in this Award Agreement shall
be deemed to give a Participant the right to be retained in the service of the Company or the
Employer, or to interfere in any way with any right of the Company or the Employer to discipline or
discharge the Participant at any time, subject to the terms of the Participant’s Employment
Agreement (if applicable).

13. Assignment by the Company. The rights and protections of the Company hereunder shall
extend to any successors or assigns of the Company and to the Company’s parents, subsidiaries, and
affiliates. This grant may be assigned by the Company without the Participant’s consent.

14. Acknowledgment. By executing this Award Agreement, the Participant hereby acknowledges
that with respect to any right to payment pursuant to this grant, the Participant is

4

 

and shall be
an unsecured general creditor of the Company without any preference as against other unsecured
general creditors of the Company, and the Participant hereby covenants for the Participant, and
anyone at any time claiming through or under the Participant not to claim any such preference, and
hereby disclaims and waives any such preference which may at any time be at issue, to the fullest
extent permitted by applicable law.

15. Application of Section 409A. This Award Agreement is not intended to constitute or
result in deferred compensation subject to the requirements of section 409A of the Code. However,
to the extent any amount payable under this Award Agreement is subsequently determined to
constitute deferred compensation subject to the requirements of section 409A of the Code, this
Award Agreement shall be administered in accordance with the requirements of section 409A of the
Code. In such case, distributions made under this Award Agreement may only be made in a manner and
upon an event permitted by section 409A of the Code. To the extent that any provision of this
Award Agreement would cause a conflict with the requirements of section 409A of the Code, or would
cause the administration of this Award Agreement to fail to satisfy the requirements of section
409A of the Code, such provision shall be deemed null and void to the extent permitted by
applicable law. In no event shall the Participant, directly or indirectly, designate the calendar
year of distribution. For purposes of section 409A of the Code each payment made under this Award
Agreement shall be treated as a separate payment. This Award Agreement may be amended without the
consent of the Participant in any respect deemed by the Committee to be necessary in order to
preserve compliance with section 409A of the Code.

16. Governing Law. This grant shall be deemed to be made under and shall be construed in
accordance with the laws of the Commonwealth of Pennsylvania, without giving effect to the
conflicts of laws provisions thereof.

17. Notice. Any notice to be given to the Company shall be in writing and shall be
addressed to the Treasurer of the Company at its principal executive office, and any notice to be
given to the Participant shall be addressed to the Participant at the address then appearing in the
records of the Company, or at such other address as either party hereafter may designate in writing
to the other. Except as otherwise set forth herein, any such notice shall be deemed to have been
duly given, made and received only when personally delivered, or on the day delivery is guaranteed
when transmitted, addressed as aforesaid, to a third party company or governmental entity providing
delivery services in the ordinary course of business, or two days following the day when deposited
in the United States mails, by registered or certified mail, postage prepaid, return receipt
requested, addressed as aforesaid..

[Signature Page Follows]

5

 

[Performance-based Vesting]

     IN WITNESS WHEREOF, the Company has granted this Target Unit on the day and year first above
written.

	 	 	 	 	 
	 	LIBERTY PROPERTY TRUST

 	 
	 	By:  	 	 
	 	 	Print Name and Title: 	 
	 	 	 	 
	 

I hereby accept the Target Units described in this Award Agreement. I have read the terms of the
Plan and this Award Agreement, and agree to be bound by the terms of the Plan and this Award
Agreement and the interpretations of the Committee with respect thereto.

	 	 	 	 	 
	 	 	ACKNOWLEDGED:
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 	 	Participant

 

Exhibit A

Performance Goals 

7exv10w13

 

Exhibit 10.13

eResearchTechnology, Inc.

2008 Bonus Plan

     Set forth below is a summary of the 2008 Bonus Plan recommended by the Compensation Committee
and approved by the Board of Directors on February 19, 2008, to be effective for fiscal 2008.

     The purpose of the plan is to promote the interests of the Company and its stockholders by
providing employees with financial rewards upon achievement of specified business objectives, and
to help the Company attract and retain employees by providing attractive compensation opportunities
linked to performance results. All of the Company’s employees are eligible to participate in the
plan, subject in some cases to certain waiting periods and with the exception that certain sales
personnel who participate in a separate commission incentive plan do not participate in the plan.

     In general, awards will be based upon the extent to which a specified combination of the
following performance targets are achieved:

	 	•	 	Revenues;
	 
	 	•	 	Net Income;
	 
	 	•	 	Contract Revenues Targets (revenue projected to be generated by new contracts into
which the Company enters with all but certain specified customers during the applicable
bonus period, regardless of when the revenue is actually recognized by the Company);
and
	 
	 	•	 	Individual performance goals.

     The Compensation Committee establishes the performance targets and individual performance
goals for the Company’s President and Chief Executive Officer and the Executive Vice President and
Chief Financial Officer. The President and Chief Executive Officer establishes the performance
targets and individual performance goals for the other executive officers. Performance targets for
the remainder of the plan participants are set by the President and Chief Executive Officer; while
departmental supervisors establish the individual performance goals for other participants in their
respective departments. Departmental and individual performance goals for 2008 include improving
customer service, enhancing technology, establishing growth opportunities through, among other
things, product expansion, improving internal processes, and improving operational efficiencies.

     Each participant in the plan has a targeted bonus opportunity, and a specified percentage of
that opportunity relates to the extent to which each performance target applicable to the
participant is achieved. For each performance target other than departmental or individual
performance goals, the plan sets forth specific levels at which 50%, 75%, 100%, 125% and 150% of
the target is achieved. A participant receives that specified percentage of the portion of the
bonus opportunity applicable to the target to the extent a particular benchmark is achieved. Where
the extent to which a target is achieved falls between the specified percentage targets, the
participant receives a pro rated portion of the bonus opportunity. As a result of the foregoing,
the maximum bonus payable to a participant under the plan is 150% of the participant’s bonus
opportunity.

     For departmental and individual performance goals, (i) the Compensation Committee 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 and Chief Financial Officer; (ii) the
Company’s President and Chief Executive Officer determines the extent to which the goals have been
achieved and any related bonus has been earned for the remaining executive officers; 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 plan participants.

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

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Percentage of Bonus Based On:
	 	 	 	 	 	 	 	 	 	 	 	 	Global
	 	 	 	 	 	 	 	 	 	 	Individual	 	Contract
	 	 	 	 	Bonus	 	 	 	Net	 	Performance	 	Revenues
	Name	 	Position	 	Opportunity	 	Revenues	 	Income	 	Goals	 	Targets
	Michael J. McKelvey,
	 	President, Chief	 	375,000	 	20	 	60	 	20	 	—
	Ph.D
	 	Executive Officer and Director	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Joel Morganroth,
	 	Chairman of the	 	98,428	 	30	 	70	 	—	 	—
	MD1
	 	Board of Directors	 	 	 	 	 	 	 	 	 	 
	 
	 	and Chief Scientific	 	 	 	 	 	 	 	 	 	 
	 
	 	Officer	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Richard A. Baron
	 	Executive Vice	 	144,375	 	20	 	60	 	20	 	—
	 
	 	President, Chief	 	 	 	 	 	 	 	 	 	 
	 
	 	Financial Officer and	 	 	 	 	 	 	 	 	 	 
	 
	 	Secretary	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Thomas P. Devine
	 	Executive Vice	 	118,125	 	20	 	60	 	20	 	—
	 
	 	President and Chief	 	 	 	 	 	 	 	 	 	 
	 
	 	Development Officer	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Amy Furlong
	 	Executive Vice	 	121,000	 	20	 	60	 	20	 	—
	 
	 	President, Cardiac	 	 	 	 	 	 	 	 	 	 
	 
	 	Safety	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Jeffrey S. Litwin,
	 	Executive Vice	 	136,500	 	20	 	35	 	20	 	25
	MD2
	 	President and Chief	 	 	 	 	 	 	 	 	 	 
	 
	 	Medical Officer	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	John M. Blakeley
	 	Executive Vice	 	111,874	 	20	 	40	 	—	 	40
	 
	 	President,	 	 	 	 	 	 	 	 	 	 
	 
	 	International	 	 	 	 	 	 	 	 	 	 
	 
	 	Operations and Sales	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Robert S. Brown
	 	Senior Vice	 	121,025	 	20	 	60	 	20	 	—
	 
	 	President, Strategic	 	 	 	 	 	 	 	 	 	 
	 
	 	Marketing, Planning	 	 	 	 	 	 	 	 	 	 
	 
	 	& Outsourcing	 	 	 	 	 	 	 	 	 	 
	 
	 	Partnerships	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Dave Laky
	 	Senior Vice	 	93,480	 	20	 	60	 	20	 	—
	 
	 	President,eClinical	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Greg Sadowski
	 	Senior Vice	 	93,480	 	20	 	60	 	20	 	—
	 
	 	President, ePRO	 	 	 	 	 	 	 	 	 	 
	 
	 	 
	George Tiger
	 	Senior Vice	 	104,000	 	30	 	30	 	—	 	40
	 
	 	President, Americas	 	 	 	 	 	 	 	 	 	 
	 
	 	Sales	 	 	 	 	 	 	 	 	 	 

2

 

 

			
	1.	 	On February 19, 2008, the Board of Directors, at the recommendation of the Compensation
Committee, also approved amendments to the Consultant Agreement dated January 1, 2007 between
Joel Morganroth, M.D., P.C. and the Company. Under the terms of this agreement, in addition
to other terms including base pay, Dr. Morganroth’s professional corporation is entitled to an
80% commission as a percentage of our net revenues for services performed by the Company’s
consultant group that result directly from the marketing efforts of his professional
corporation. These commissions are not included in the table above.
	 
	2.	 	Dr. Litwin is also entitled to an additional bonus of up to $70,000 based on the extent to
which the Company achieves specified Consulting Profits targets (gross profits of the eRT
consulting group defined as revenue less direct payments made to providers of consulting
services). This additional bonus is not subject to the overall profit limitations of other
aspects of the bonus plan. This additional bonus is not included in the table above.

     Notwithstanding the foregoing, the Committee retains the discretion under the 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 and
Contract Revenues targets, are achieved, and the Board retains the discretion to make any such
adjustment it deems appropriate.

3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00141-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00141-of-00352.parquet"}]]