Document:

Exhibit 10.13

SurModics, Inc.
 Board Compensation
Policy

To be effective beginning with calendar 2005 and,
therefore, these compensation provisions commence as of January 1, 2005.

Non-employee directors shall receive an annual retainer of
$10,000 ($12,000 for Committee Chairs), payable quarterly at the end of each calendar quarter. If, for any reason, the director does not serve for the
entire calendar quarter, the director shall be entitled to a pro rata portion of that quarterly payment.

Non-employee directors shall also receive $1,000 for each
formal Board meeting attended and $500 for each formal Committee meeting attended. All such fees shall be payable quarterly at the end of each calendar
quarter.

When a non-employee director is first elected to the board,
such director shall be granted a nonqualified stock option for 10,000 shares of the Company’s common stock. In November of each year, each
non-employee director shall be granted a nonqualified stock option for 5,000 shares of the Company’s common stock; provided, however, that such
director shall not be entitled to such annual option grants until he or she has served as a director for at least 12 months.

All such 10,000-share and 5,000-share options shall be
granted under the Company’s 2003 Equity Incentive Plan, shall have a ten-year term, and shall have an exercise price equal to the fair market
value of the Company’s common stock on the date of grant. Such options shall be immediately vested for 20% of the shares on the date of grant,
shall vest with respect to 20% of the shares on the next four anniversaries of the date of grant, and shall be subject to such other terms and
conditions set forth in the individual option agreements. In the event the director’s service on the Board terminates for any reason, such options
shall continue to vest, and the director shall be entitled to exercise such options until the ten-year expiration date.

For the 2005 calendar year, all meeting fees and retainers
shall be paid in cash. For 2006 and future calendar years, the Company will consider offering directors the choice between cash and nonqualified stock
options. Any election by a director to receive nonqualified stock options in lieu of a cash payment of retainer and/or meeting fees would have to be
made on or before December 31st of each year and would be irrevocable for the next calendar
year. If the director should elect to receive nonqualified stock options in lieu of cash, the number of shares subject to each option would be
determined according to a formula to be determined by the Board prior to the 2006 calendar year; however, it currently is anticipated that the number
of shares would be determined by dividing the director’s total cash payment for the calendar quarter by the fair market value of the
Company’s common stock on the quarterly payment date, and multiplying that number of shares by at least two.*

Each of these nonqualified stock options granted in lieu of
cash would be granted under the 2003 Equity Incentive Plan on the quarterly payment date. The deferred compensation requirements of the Internal
Revenue Code have recently been modified, and IRS guidance as to their application to and impact on the terms and provisions of the options to be
granted in lieu of cash is expected in 2005. The terms and provisions of the options granted in lieu of cash are intended by the Board to be the same
as those for the 10,000-share and 5,000-share options described above except to the extent the application of the deferred compensation provisions
causes the Board to establish prior to 2006 different terms and provisions for the options granted in lieu of cash.

*  By action of the Board on November 14, 2005, the Board determined that the Company would not offer the directors the
choice between cash or options for 2006 and future years unless and until further action is taken by the Board to implement such
feature.Exhibit 10.14

Summary of Compensation Arrangements for Named Executive
Officers

The executive officers of the
Company serve at the discretion of the Board of Directors. From time to time, the Organization & Compensation Committee of the Board reviews and
determines the salaries that are paid to the Company’s executive officers. Salaries are intended to be competitive and reflect factors such as
individual performance, level of responsibility, and prior experience. The following are the annual base salaries for fiscal 2006 for the
Company’s fiscal 2005 Chief Executive Officers and other four most highly compensated executive officers for fiscal 2005 (“Named Executive
Officers”), including Dale R. Olseth, the Company’s former Chief Executive Officer.

	  Named Executive Officer
	
	
	   
	Base Salary  

	  Dale R. Olseth1
	    	    	    	  $	175,000	  
	  Bruce J Barclay2
	    	    	    	  $	325,000	  
	  Philip D. Ankeny
	    	    	    	  $	193,209	  
	  Steven J. Keough
	    	    	    	  $	207,504	  
	  David S. Wood
	    	    	    	  $	214,200	  
	  Lise W. Duran
	    	    	    	  $	139,920	  

 

In addition, the Named Executive
Officers are eligible to receive cash bonuses, stock options and other awards under the Company’s FY 2006 SurModics Bonus Plan and its 2003 Equity
Incentive Plan. The FY 2006 SurModics Bonus Plan and the 2003 Equity Incentive Plan, including the form of options and awards under such Plan, are
exhibits to this Form 10-K. A description of certain former stock plans, other benefit plans generally available to all Company employees, including
the Named Executive Officers, and the compensation philosophy of the Organization & Compensation Committee are set forth in the Company’s
Proxy Statement filed with the SEC on December 15, 2004, which description is incorporated herein by reference.

1 Mr. Olseth retired as the Chief Executive Officer of the Company effective July 1, 2005. Mr. Olseth continues to serve as an employee
of the Company and remain on its Board of Directors as Executive Chairman

2 Mr. Barclay was appointed as the Chief Executive Officer of the Company efffective July 1, 2005.EXHIBIT 10.15

FY 2006 SurModics Bonus Plan-Executive
Officers

I.  Consists of two parts

A.  Corporate
objectives, and

	B.  
	 	Business Unit or Department objectives

II.  Corporate Bonus Payout structure (stated as
% of base salary)

	CEO
 	 	FY 2006 Revenue
	   

	
	
	
	   
	
	   
	Level I
	   
	Level II
	   
	Level III

	FY
	    	    	    	Level I
	    	    	12	%  	    	    	16	%  	    	    	24	%  
	2006
	    	    	    	Level II
	    	    	16	%  	    	    	28	%  	    	    	32	%  
	EPS
	    	    	    	Level III
	    	    	24	%  	    	    	32	%  	    	    	40	%  

 

	Senior Staff
 	 	FY 2006 Revenue
	   

	(excluding CEO)
	
	Level I
	   
	Level II
	   
	Level III
	   

	FY
	    	    	    	Level I
	    	    	9	%  	    	    	12	%  	    	    	18	%  
	2006
	    	    	    	Level II
	    	    	12	%  	    	    	21	%  	    	    	24	%  
	EPS
	    	    	    	Level III
	    	    	18	%  	    	    	24	%  	    	    	30	%  

 

The Level I,
Level II, and Level III performance levels are as set by the Organization & Compensation Committee for FY 2006.

III.  Business Unit or Department
objectives

A.  Objectives
identified by Senior Staff member and approved by CEO

B.  One objective for
Business Units will be revenue

C.  All objectives must
be detailed and measurable

	IV.  
	 	No bonus payout unless both Revenue and EPS meet at least Level
I corporate objective, whether or not Business Unit or Department objectives are met.

	V.  
	 	Composition of Total Bonus Payout

1.   Senior Staff
except CEO: 75% corporate + 25% Business Unit/Department

2.  CEO: will receive
100% corporate bonus only and no Business Unit/Department component

3.  Executive Chairman
is not bonus eligible

	Example:  
	 	If corporate Level II revenue and Level III EPS are met, then
Senior Staff member gets 24% corporate bonus. If all Business Unit/Department goals are also met for such Senior Staff member, then that person gets an
additional 8% bonus, for a total bonus payout of 32% (75% corporate, 25% Business Unit)Exhibit 10(xii)

MANAGEMENT INCENTIVE COMPENSATION PLAN – FISCAL YEAR 2006

PURPOSE

The purpose of the Plan is to provide an incentive for extraordinary performance by management who, individually and collectively as a management team, have the greatest influence over the financial success of the Bank.

In addition to its primary purpose, the Plan is designed to accomplish other important objectives of the Bank including: fostering teamwork and cooperation among management; helping to retain and encourage commitment on the part of management, and setting high goals and increasing returns to shareholders.

ADMINISTRATION 

The Compensation Committee of the Bank’s Board of Directors shall administer the Plan.

PARTICIPANTS

Participation is limited to the President, Executive Vice President, Senior Vice Presidents and Vice Presidents (“officers”).  Participants must be actively employed in this capacity on the date the incentive is paid to be eligible to receive the full award.  Those participants who are no longer officers on the date the incentive is paid, may be eligible for a partial award, depending upon the circumstances.  Those participants promoted into this category during the fiscal year may receive a pro-rated amount of any incentive compensation awarded.

BANK PERFORMANCE GOALS

Performance goals to be determined by the Compensation Committee of the Board of Directors.

CALCULATION OF INCENTIVE AWARDS

Incentive compensation awards are calculated based on the attainment of various goals.  For fiscal year 06, the goals and incentives are as follows:

A 10% growth in EPS would mean a bonus of 5% of salary.
 ROA of at least 1.5% would be an additional 5% of salary.
 ROE of at least 15% would increase the bonus by another 5% of salary.
 The maximum bonus would be 15% of salary.

NOT AN EMPLOYMENT CONTRACT

Nothing contained in the Plan shall give any officer the right to be retained in the employment of the Bank or affect the right of the Bank to dismiss any officer.  The adoption of the Plan shall not constitute a contract between the Bank and any officer.

FINAL REVIEW AND APPROVAL BY COMPENSATION COMMITTEE

The Compensation Committee will review the Bank’s results for the year to determine whether the Plan goals should be adjusted for the purpose of the Management Incentive Plan.  If extraordinary events distort the results, it will be at the Committee’s sole discretion to modify those results to determine whether the bonus should be paid.  The budget will be a gauge in determining what is an extraordinary event.

The Compensation Committee reserves the right to amend or terminate the Plan, should the Bank encounter unforeseen or extraordinary circumstances that impact the financial stability/profitability of the Bank.

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