**Exhibit 10.40****SEVERANCE AGREEMENT AND GENERAL RELEASE**     THIS SEVERANCE AGREEMENT AND GENERAL RELEASE (“Release Agreement”) is executed byDavid Natan (the “Executive”) pursuant to Section 6 of the Employment Agreement dated as ofJanuary 10, 2007 by and between PharmaNet Development Group, Inc., a Delaware corporation (the“Company”) and the Executive (the “Employment Agreement”).     WHEREAS, the Executive’s employment with the Company has been terminated effective November21, 2007 (the “Effective Date of Termination”);     WHEREAS, the Executive has had 21 days to consider this Release Agreement, and 7 days torevoke after signing;     WHEREAS, the Company has advised the Executive in writing, through this Release Agreement, toconsult with an attorney before signing this Release Agreement, and Executive has done so withCharles Freiburger, Esq., his counsel of choice;     WHEREAS, the Executive acknowledges that the consideration to be provided to the Executiveunder this Release Agreement is sufficient to support all promises contained herein; and     WHEREAS, the Executive understands that the Company regards the representations and covenantsby the Executive in the Employment Agreement and this Release Agreement as material and that theCompany is relying on such representations and covenants in paying amounts to the Executivepursuant to the Employment Agreement and this Release Agreement.THE EXECUTIVE THEREFORE AGREES AS FOLLOWS:     1. The Executive shall receive the payments and benefits set forth in Section 6(c) of theEmployment Agreement in accordance with the terms and subject to the conditions thereof, and thoseset forth herein, except that the provisions of Section 6 shall be modified as follows:          (a) Executive’s execution of this Release Agreement shall signify his certification that hehas complied with his obligations under the Employment Agreement and acknowledges his continuingobligations under the Employment Agreement. Executive further certifies that he has returned anyand all documents, data, materials and other property of Company that he has ever had in hispossession, custody, or control. Executive shall be permitted to purchase the laptop computer andprinter owned by the Company and used by the Executive prior to the Effective Date of Terminationfor the fair market value of three hundred dollars ($300); provided, however, that all proprietarymaterials of the Company and software (including licensed software) shall be removed from thecomputer. Executive’s execution of this Release Agreement shall be deemed sufficient to satisfy therequirements of Section 6(b)(i)(a), (b), and (c) of the Employment Agreement.Page 1 of 7 — Severance Agreement And General Release
 

 
          (b) Section 6(c)(i) of the Employment Agreement is modified as follows: “In lieu of anyfurther salary payments to the Executive for periods subsequent to the Effective Date ofTermination, the Company shall cause an aggregate severance payment to be made to the Executive, incash, equal to two (2) times such Executive’s Annual Base Salary (the “Cash SeverancePayment”), and payable in forty-eight (48) equal bi-monthly installments in accordance with theCompany’s normal pay roll practices commencing with the Company’s first pay roll period in themonth following the Executive’s “separation from service” (as such term is defined in TreasuryRegulations issued under Section 409A of the Internal Revenue Code) in accordance with Section6(f), or such later date required by Section 6(g) hereof, subject to the Executive’s execution ofan effective release.”          (c) Section 6(c)(ii) of the Employment Agreement is modified as follows: “For a twenty-four(24) month period after the Effective Date of Termination, the Executive shall receive life,disability, accident and health insurance coverage that is substantially similar to that which theExecutive is receiving immediately prior to the Effective Date of Termination; provided, however,that in order to receive continued health coverage, the Executive shall be required to pay to theCompany at the same time that premium payments are due for the month an amount equal to the fullmonthly premium payments required for such health coverage and the Company shall reimburse to theExecutive the amount of such monthly premium, less the amount that the Executive was required topay for such health coverage immediately prior to the Effective Date of Termination (the “HealthPayment”), no later than five (5) days following the date the premium for the month is paid by theExecutive. In addition, on each date on which the Health Payments are made, subject to subparagraph6(g), the Company shall pay to the Executive an additional amount equal to the federal, state andlocal income and payroll taxes that the Executive incurs on each monthly Health Payment (the“Health Gross-up Payment”). The Health Payment paid to the Executive during the period of timeduring which the Executive would be entitled to continuation coverage under the Company’s grouphealth plan pursuant to Code Section 4980B (or any replacement or successor provision of the UnitedStates tax law) if the Executive elected such coverage and paid the applicable premiums is intendedto qualify for the exception from deferred compensation as a medical benefit provided in accordancewith the requirements of Treas. Reg. §1.409A-1(b)(9)(v)(B). The Health Payment, the Health Gross-upPayment, and any taxable medical benefits paid or provided hereunder shall be reimbursed toExecutive in a manner that complies with the requirements of Treas. Reg. §1.409A-3(i)(1)(iv). TheCOBRA health care continuation coverage period under section 4980B of the Code shall runconcurrently with the foregoing 24-month period.”          (d) As of the date of Executive’s execution of this Release Agreement, the Executive has seven(7) unused vacation days. The Executive shall be permitted to use these vacation days prior to theEffective Date of Termination. To the extent that the Executive is unable to use any of thesevacation days prior to the Effective Date of Termination due to work assigned to him by theCompany, the Company shall compensate the Executive for all unused vacation days at the daily rateof pay for Executive’s Annual Base Salary, which payment will be made simultaneously at the timethe first payment is made to Executive under Section 1(b) above.Page 2 of 7 — Severance Agreement And General Release
 

 
          (e) Section 6(f) of the Employment Agreement is modified as follows: “The Cash SeverancePayment shall be made twice monthly in accordance with the Company’s ordinary payroll practices ineach of the twenty-four (24) months immediately following the month in which the Effective Date ofTermination occurs, subject to the Executive’s execution of an effective release. At the time thatpayments are made under this Section, the Company shall provide the Executive with a detailedwritten statement setting forth the manner in which such payments were calculated and the basis forsuch calculations. Notwithstanding the foregoing, Cash Severance Payments shall immediately ceaseand no longer be payable if Executive violates any of the terms set forth in Sections 7 or 8hereof. Such remedy shall be in addition to any and all other remedies available by law or equity.”     2. The Company will reimburse Executive’s legal fees incurred in connection with the reviewand negotiation of this Agreement upon providing appropriate invoices evidencing the same; providedsuch amount shall not exceed five thousand dollars ($5,000). The Executive shall provide suchinvoices within sixty (60) days of the execution of this Release Agreement and the Company shallreimburse the Executive within thirty (30) days after received.     3. The payments and benefits provided for in this Release Agreement, including the paymentsand benefits set forth in Section 6 of the Employment Agreement, as modified herein, are intendedto comply with Section 409A of the Internal Revenue Code (“Code Section 409A”) and itscorresponding regulations, or an exemption, to the extent applicable. Company shall make allpayments under this Agreement in a manner permitted by Code Section 409A, to the extent applicable.All payments to be made upon a termination of employment under this Agreement that constitute“deferred compensation” within the meaning of Code Section 409A may only be made upon theExecutive’s “separation from service” with the Company within the meaning of Code Section 409A andshall be delayed and paid in accordance with Section 6(g) of the Employment Agreement to the extentrequired to comply with Code Section 409A. For purposes of Code Section 409A, each payment madeunder this Agreement shall be treated as a separate payment and the right to a series ofinstallment payments under this Agreement shall be treated as a right to a series of separatepayments. In no event may the Executive, directly or indirectly, designate the calendar year of apayment. All reimbursements and in-kind benefits provided under the Agreement shall be made orprovided in accordance with the requirements of Code Section 409A.     4. The Executive, on behalf of himself, his heirs, executors, administrators, and/or assigns,does hereby **RELEASE AND FOREVER DISCHARGE**the Company, together with its parents, subsidiaries,affiliates, partners, joint ventures, predecessor and successor corporations and business entities,past, present and future, and its and their agents, directors, officers, employees, shareholders,investors, insurers and reinsurers, representatives, attorneys, and employee benefit plans (and thetrustees or other individuals affiliated with such plans) past, present and future (collectively,the “Company Releasees”), of and from any and all legally waivable causes of action, suits,debts, complaints, claims and demands whatsoever in law or in equity, whether known or unknown,suspected or unsuspected, which Executive, or his heirs, executors, administrators, and/or assigns,ever had or now has against each or any of thePage 3 of 7 — Severance Agreement And General Release
 

 
Company Releasees, from the beginning of time to the date of Executive’s execution of thisAgreement, including, without limitation, any and all claims relating to Executive’s employmentwith Company or the termination of that employment, including, without limitation, claims under theAge Discrimination in Employment Act (“ADEA”), Title VII of the Civil Rights Act of 1964,Section 1981 of the Civil Rights Act of 1870, the Americans with Disabilities Act, the EmployeeRetirement Income Security Act, the Family and Medical Leave Act, the New Jersey Law AgainstDiscrimination, the New Jersey Conscientious Employee Protection Act, the New Jersey Family LeaveAct, the New Jersey Wage Payment Act, the New Jersey Wage and Hour Law, the Florida Civil RightsAct of 1992, the Miami-Dade County Equal Opportunity Ordinance, the Florida Private WhistleblowerAct, the Florida Wage Discrimination Law, the Florida Equal Pay Law, the Florida Minimum Fair WageStandards Act, the retaliation provisions of the Florida Workers’ Compensation Law, and any and allother applicable federal, state or local constitutional, statutory or common law claims, now orhereafter recognized, including but not limited to, any claim for severance pay, bonus pay, sickleave, holiday pay, vacation pay, except for any relating to Company’s obligations under subsection(d) of Paragraph 1 hereof, life insurance, health or medical insurance or any other fringe benefitor disability, or any claims for economic loss, compensatory damages, punitive damages, liquidateddamages, attorneys’ fees, other than with respect to Company’s obligations under Paragraph 2hereof, expenses and costs, other than with respect to Company’s obligations hereunder. The Companyhereby confirms that the Executive was (during the term of his employment with the Company) an“executive officer” of the Company. This Release Agreement shall not waive any rights toindemnification that the Executive may have pursuant to the Company’s bylaws or certificate ofincorporation, as amended, and the Company shall continue to provide indemnification to theExecutive to the extent consistent with the Company’s obligations under such bylaws and certificateof incorporation, or release the Executive’s rights, and the Company’s obligations, under thisRelease Agreement.     5. The Executive expressly represents and warrants that the Executive is the sole owner of theactual and alleged claims, demands, rights, causes of action and other matters that are releasedherein; that the same have not been transferred or assigned or caused to be transferred or assignedto any other person, firm, corporation or other legal entity; and that the Executive has the fullright and power to grant, execute and deliver the general release, undertakings and agreementscontained herein.     6. Without additional compensation, the Executive shall cooperate and assist the CompanyReleasees and their counsel fully, as requested, in connection with any matter, including but notlimited to, any pending or future: claim, investigation, inquiry, regulatory matter, administrativeor judicial proceedings, arbitration, or litigation, relating to any matter in which he wasinvolved (or is alleged to have been involved) while employed by the Company or any of the CompanyReleasees or of which he has knowledge by virtue of his employment at the Company or any of theCompany Releasees. Such cooperation and assistance shall include, but not be limited to: i) meetingwith and providing full, candid, and truthful information to the Company or any of the CompanyReleasees or their respective attorneys, representatives, or advisors; ii) providing depositions,testimony, or interviews; and iii) signing affidavits or otherPage 4 of 7 — Severance Agreement And General Release
 

 
documents provided that they are factually accurate. The parties will endeavor to schedulesuch cooperation in a manner that is mutually convenient. The Company shall reimburse Executive forany out-of-pocket expenses he incurs as a consequence of his compliance with requests made by theCompany under this Paragraph 6.     7. (a) Executive acknowledges that he will be deemed an affiliate under SEC Rule 144promulgated under the Securities Act of 1933, as amended, for a period of three (3) months from theEffective Date of Termination, and will remain subject to the Company’s insider trading policyuntil the later of: (i) the Company’s public release of its financial statements for the quarterended September 30, 2007; or (ii) Executive is no longer in possession of material non-publicinformation. Executive also hereby acknowledges and agrees that, notwithstanding the Company’spolicies, Executive understands that he will remain subject to all federal and state securitieslaws and regulations. The Company agrees to file on Executive’s behalf all necessary Form 4srequired by the SEC from the Executive for the full period the Executive is deemed to be anaffiliate under SEC Rule 144.          (b) The Company confirms that all options, restricted shares and restricted share units(“RSUs”) that have not vested as described in Exhibit One, attached hereto, shall vest uponthe Effective Date of Termination. The Company shall deliver all restricted shares to Executive nolater than five (5) business days after the expiration of the revocation period described inParagraph 11 hereof, and all RSUs to Executive six (6) months and one (1) day after the EffectiveDate of Termination.     8. Except as set forth herein, the Executive agrees not to make any written or oral statementsabout any of the Company Releasees external to the Executive that are disparaging. Nothing in thisRelease Agreement shall preclude the Executive from communicating or testifying truthfully (i) tothe extent required or protected by law (as determined by the Executive in his sole discretion),(ii) to any state or federal governmental agency, (iii) in response to a subpoena to testify issuedby a court of competent jurisdiction, (iv) in any action to challenge or enforce the terms of thisRelease Agreement, or (v) in the course of satisfying any of Executive’s obligations underParagraph 6 hereof.     9. Except as set forth herein, the Company agrees that it shall not authorize anyone to makewritten or oral statements, on its behalf, about the Executive external to the Company Releaseesthat are disparaging. For purposes of this Paragraph, written or oral statements made by employeeswho are not elected officers of the Company, members of the Company’s Executive Committee or thehead of Investor Relations of the Company (each an “Executive Officer”), which were notexpressly authorized by an Executive Officer of the Company, shall not be deemed to be statementsby, or on behalf of, the Company, or constitute a violation of this Paragraph. Nothing in thisAgreement shall preclude the Company from communicating or testifying truthfully (i) to the extentrequired or protected by law (as determined by the Company in its sole discretion), (ii) to anystate or federal governmental agency, (iii) in response to a subpoena to testify issued by a courtof competent jurisdiction, or (iv) in any action to challenge or enforce the terms of thisAgreement.Page 5 of 7 — Severance Agreement And General Release
 

 
     10. Executive and Company each agree and acknowledge that this Release Agreement is not, andshall not be construed to be, an admission of any violation of any federal, state or local statute,ordinance or regulation, or of any duty owed by any Company Releasee to Executive or owed byExecutive to any Company Releasee, or of any wrongdoing to Executive by any Company Releasee or toany Company Releasee by Executive.     11. ACKNOWLEDGMENT BY EXECUTIVE. BY EXECUTING THIS RELEASE AGREEMENT, THE EXECUTIVEEXPRESSLY ACKNOWLEDGES THAT THE EXECUTIVE HAS READ THIS RELEASE AGREEMENT CAREFULLY, THAT THEEXECUTIVE FULLY UNDERSTANDS ITS TERMS AND CONDITIONS, THAT THE EXECUTIVE HAS BEEN ADVISED TOCONSULT WITH AN ATTORNEY PRIOR TO EXECUTING THIS RELEASE AGREEMENT, THAT THE EXECUTIVE HAS BEENADVISED THAT THE EXECUTIVE HAS 21 DAYS WITHIN WHICH TO DECIDE WHETHER OR NOT TO EXECUTETHIS RELEASE AGREEMENT AND THAT THE EXECUTIVE INTENDS TO BE LEGALLY BOUND BY IT. DURING A PERIOD OF7 DAYS FOLLOWING THE DATE OF THE EXECUTIVE’S EXECUTION OF THIS RELEASE AGREEMENT, THEEXECUTIVE SHALL HAVE THE RIGHT TO REVOKE THE RELEASE AGREEMENT. IF EXECUTIVE DOES NOT SO REVOKE,THIS RELEASE AGREEMENT WILL BECOME A BINDING AGREEMENT BETWEEN EXECUTIVE AND THE COMPANY UPON THEEXPIRATION OF SUCH 7-DAY REVOCATION PERIOD. THIS RELEASE AGREEMENT SHALL NOT BECOME EFFECTIVE ORENFORCEABLE UNTIL THE EXPIRATION OF SUCH 7-DAY REVOCATION PERIOD.     12. Together with the Employment Agreement, this Release Agreement contains the entireagreement and understanding between the parties relating to the subject matter hereof andsupersedes any prior understandings, agreements or representations by or between the parties,written or oral, relating to the subject matter hereof.     13. This Release Agreement shall be governed and construed in accordance with the laws of theState of New Jersey without regard to principles of conflict of laws.***Signature Page Follows on Next Page***Page 6 of 7 — Severance Agreement And General Release
 

 
      EXECUTIVE