Document:

Ex-10.38 Form of Executive Officer Indemnification

 

Exhibit 10.38

INDEMNIFICATION AGREEMENT

     This
Indemnification Agreement (the “Agreement”) entered into as
of this ___ day of ___,
20 ___ by and between PharmaNet Development Group, Inc., a Delaware corporation (the “Company”), and
___ (the “Indemnitee”):

     WHEREAS, competent and experienced persons are becoming increasingly reluctant to serve
publicly-held corporations as directors, officers, or in other capacities unless they are provided
with adequate protection through liability insurance or adequate indemnification against inordinate
risks of claims and actions against them arising out of their service to the corporation;

     WHEREAS, the board of directors of the Company (the “Board”) has determined that the inability
to attract and retain such persons is detrimental to the best interests of the Company’s
stockholders and that the Company should act to assure such persons that there will be increased
certainty of such protection in the future;

     WHEREAS, Section 145 of the Delaware General Corporation Law (the “DGCL”) empowers the Company
to indemnify its officers, directors, employees and agents by agreement and to indemnify persons
who serve, at the request of the Company, as directors, officers, employees or agents of other
corporations or enterprises;

     WHEREAS, it is reasonable, prudent and necessary for the Company contractually to obligate
itself to indemnify such persons to the fullest extent permitted by applicable law so that they
will serve or continue to serve the Company free from undue concern that they will not be so
indemnified;

     WHEREAS, Indemnitee is willing to serve as an executive officer of the Company on the
condition that he be so indemnified.

     NOW, THEREFORE, in consideration of the premises and the mutual covenants contained herein,
the Company and Indemnitee do hereby covenant and agree as follows:

     1. Definitions. For purposes of this Agreement:

          (a) “Act” means the Securities Exchange Act of 1934.

          (b) “Beneficial Owner” means (as defined in Rule 13d-3 under the Act), any Person who directly
or indirectly, owns securities of the Company representing 10% or more of the combined voting power
of the Company’s then outstanding securities.

          (c) “Change of Control” means a change in control of the Company occurring after the Effective
Date of a nature that would be required to be reported in response to Item 5.01 on Form 8-K (or in
response to any similar item on any Securities and Exchange Commission schedule or form)
promulgated under the Act, whether or not the Company is then subject to such reporting
requirement; provided, however, that, without limitation, such a Change of Control
shall be deemed to have occurred after the Effective Date if a Person (as defined below) becomes
the Beneficial Owner without the prior approval of at least two-thirds of the directors in

 

 

office immediately prior to such person attaining such percentage; (ii) the Company is a party
to a merger, consolidation, sale of assets or other reorganization, or a proxy contest, as a
consequence of which members of the Board in office immediately prior to such transaction or event
constitute less than a majority of the Board thereafter; or (iii) during any period of two
consecutive years, individuals who, at the beginning of such period, constituted the Board
(including for this purpose, any new director whose election or nomination for election by the
Company’s stockholders was approved by a vote of at least two-thirds of the directors then still in
office who were directors at the beginning of such period) cease for any reason to constitute at
least a majority of the Board.

          (d) “Corporate Status” describes the status of a person who is or was a director, officer,
employee, agent or fiduciary of the Company or of any other corporation, partnership, joint
venture, trust, employee benefit plan or other enterprise which such person is or was serving at
the request of the Company.

          (e) “Disinterested Director” means a director of the Company who is not and was not a party to
the Proceeding in respect of which indemnification is sought by Indemnitee.

          (f) “Effective Date” means the date first above written.

          (g) “Expenses” shall include all reasonable attorney’s fees, retainers, court costs,
transcript costs, fees of experts, witness fees, travel expenses, duplicating costs, printing and
binding costs, telephone charges, postage, delivery service fees and all other disbursements or
expenses of the types customarily incurred in connection with prosecuting, defending, preparing to
prosecute or defend, investigating, or being or preparing to be a witness in a Proceeding.

          (h) “Independent Counsel” means a law firm, or a member of a law firm, that is experienced in
matters of corporation law and neither presently is, nor in the past five years has been, retained
to represent (i) the Company or Indemnitee in any matter material to either such party, or (ii) any
other party to the Proceeding giving rise to a claim for indemnification hereunder. Notwithstanding
the foregoing, the term “Independent Counsel” shall not include any person who, under the
applicable standards of professional conduct then prevailing, would have a conflict of interest in
representing either the Company or Indemnitee in an action to determine Indemnitee’s rights under
this Agreement.

          (i) “Person” means (as such term is used in Sections 13(d) and 14(d) of the Act) an
individual, a partnership, a corporation, a limited liability company, an association, a joint
stock company, a trust, a joint venture, an unincorporated organization, or a governmental entity
(or any department, agency, or political subdivision thereof).

          (j) “Proceeding” includes any actual or threatened action, suit, arbitration, alternative
dispute resolution mechanism, investigation, administrative hearing or any other proceeding whether
civil, criminal, administrative or investigative, whether or not initiated prior to the Effective
Date, except a proceeding initiated by an Indemnitee pursuant to Section 11 of this Agreement to
enforce his rights under this Agreement.

2

 

          (k) “Standard” shall mean the applicable standard of conduct set forth in Sections 145(a) and
(b) of the DGCL.

     2. Agreement to Serve. Indemnitee agrees to serve as an executive officer of the
Company. Indemnitee may at any time and for any reason resign from such position (subject to any
other contractual obligation or any obligation imposed by operation of law). Similarly, the Company
shall have no obligation under this Agreement to continue Indemnitee in any position with the
Company.

     3. Indemnification — General. The Company shall indemnify and advance Expenses to
Indemnitee as provided in this Agreement and to the fullest extent permitted by applicable law in
effect on the date hereof and to such greater extent as applicable law may thereafter from time to
time permit. However, no indemnification shall be made by the Company (except as ordered by a
court) unless a determination has been made in the manner provided for in Section 145(d) of the
DGCL and Section 9(b) herein that Indemnitee has met the applicable Standard. The rights of
Indemnitee provided under the preceding sentence shall include, but shall not be limited to, the
rights set forth in the other sections of this Agreement.

     4. Third Party Actions. Indemnitee shall be entitled to the rights of indemnification
provided in this Section 4 if, by reason of his Corporate Status, he is, or is threatened to be
made, a party to any Proceeding, other than a Proceeding by or in the right of the Company.
Pursuant to this Section 4, Indemnitee shall be indemnified against Expenses (including attorneys’
fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by him in
connection with such Proceeding or any claim, issue or matter therein, if (i) he acted in good
faith, and in a manner he reasonably believed to be in or not opposed to the Company’s best
interests; and (ii) with respect to any criminal Proceeding, had no reasonable cause to believe his
conduct was unlawful. Indemnitee shall not be entitled to indemnification in connection with any
Proceeding charging improper personal benefit to the Indemnitee, whether or not involving action in
his official capacity, in which he was judged liable on the basis that personal benefit was
improperly received by him. Notwithstanding the foregoing, Indemnitee shall not be entitled
to indemnification of Expenses paid by him to the extent that: (i) they relate to civil monetary
penalties and/or disgorgement of profits imposed in an action brought by, or in an administrative
proceeding before, the Securities and Exchange Commission; and (ii) such reimbursement would
violate public policy or otherwise would be prohibited by the Securities Exchange Commission or
applicable law.

     5. Direct and Derivative Actions. Indemnitee shall be entitled to the rights of
indemnification provided in this Section 5, by reason of his Corporate Status, if he is, or is
threatened to be made, a party to any Proceeding brought by or in the right of the Company to
procure a judgment in its favor. Pursuant to this Section, Indemnitee shall be indemnified against
Expenses actually and reasonably incurred by him or on his behalf in connection with such
Proceeding if he acted in good faith and in a manner he reasonably believed to be in or not opposed
to the best interests of the Company. Notwithstanding the foregoing, no indemnification
against such Expenses shall be made in respect of any claim, issue or matter in such Proceeding as
to which Indemnitee shall have been adjudged to be liable to the Company unless the Delaware Court
of Chancery or the court in which such Proceeding was brought shall determine upon application
that, despite the adjudication of liability but in view of all of the circumstances

3

 

of the case, Indemnitee is fairly and reasonably entitled to indemnification for such Expenses
which the Delaware Court of Chancery or such other court shall deem proper.

     6. Indemnification for Expenses of an Indemnitee. Notwithstanding any other
provision of this Agreement, to the extent that Indemnitee is, by reason of his Corporate Status, a
party to and is successful, on the merits or otherwise, in any Proceeding, he shall be indemnified
against all Expenses actually and reasonably incurred by him in connection therewith. If Indemnitee
is not wholly successful in such Proceeding but is successful, on the merits or otherwise, as to
one or more but less than all claims, issues or matters in such Proceeding, the Company shall
indemnify Indemnitee against all Expenses actually and reasonably incurred by him or on his behalf
in connection with each successfully resolved claim, issue or matter. For purposes of this Section
6 and without limitation, the termination of any claim, issue or matter in such a Proceeding by
dismissal, with or without prejudice, shall be deemed to be a successful result as to such claim,
issue or matter.

     7. Indemnification for Expenses of a Witness. Notwithstanding any other
provision of this Agreement, to the extent that Indemnitee is, by reason of his Corporate Status, a
witness in any Proceeding, he shall be indemnified against all Expenses actually and reasonably
incurred by him or on his behalf in connection therewith.

     8. Advancement of Expenses. The Company shall advance all reasonable Expenses
incurred by or on behalf of Indemnitee in connection with any Proceeding within 20 working days
after the receipt by the Company of a statement or statements from the Indemnitee requesting such
advance or advances from time to time, whether prior to or after final disposition of such
Proceeding. Such statement or statements shall reasonably evidence the Expenses incurred by
Indemnitee and shall include, be preceded by or accompanied by, as the case may be, the following:
(i) a written affirmation of the Indemnitee’s good-faith that he has met the Standard; (ii) an
undertaking by or on behalf of Indemnitee to repay any Expenses advanced if it shall be determined
that Indemnitee did not meet the Standard or that Indemnitee is not entitled to be indemnified
against such Expenses; and (iii) a determination that the facts then known to those making the
determination would not preclude indemnification under the DGCL.

     Indemnitee understands and agrees that the undertaking required by this Section 8(ii) shall be
an unlimited general obligation of the Indemnitee.

     9. Indemnification Procedure.

          (a) To obtain indemnification under this Agreement, Indemnitee shall submit to the Company a
written request, including therein or therewith such documentation and information as is reasonably
available to Indemnitee and is reasonably necessary to determine whether and to what extent
Indemnitee is entitled to indemnification. The Secretary of the Company shall, promptly upon
receipt of such a request for indemnification, advise the Board in writing that Indemnitee has
requested indemnification.

          (b) Upon written request by Indemnitee for indemnification pursuant to Section 9(a) hereof, a
determination, if required by applicable law, with respect to Indemnitee’s entitlement thereto
shall be made (i) by the Board by a majority vote of a quorum consisting of

4

 

Disinterested Directors; or (ii) if a quorum cannot be obtained or, even if attainable, a
quorum of Disinterested Directors so directs, by (a) Independent Counsel in a written opinion; or
(b) by the stockholders of the Company. If it is determined that Indemnitee is entitled to
indemnification, payment to Indemnitee shall be made within 10 working days after such
determination. Indemnitee shall cooperate with the person, persons or entity making such
determination with respect to Indemnitee’s entitlement to indemnification, including providing to
such person, persons or entity upon reasonable advance request any documentation or information
which is not privileged or otherwise protected from disclosure and which is reasonably available to
Indemnitee and reasonably necessary to such determination.

     10. Presumptions and Effect of Certain Proceedings.

          (a) If a Change of Control shall have occurred, in making a determination with respect to
entitlement to indemnification hereunder, the person or persons or entity making such determination
shall presume that Indemnitee is entitled to indemnification under this Agreement if Indemnitee has
submitted a request for indemnification in accordance with Section 9(a) of this Agreement, and the
Company shall have the burden of proof to overcome that presumption in connection with the making
by any person, persons or entity of any determination contrary to that presumption.

          (b) If the person, persons or entity empowered or selected under Section 9 of this Agreement
to determine whether Indemnitee is entitled to indemnification shall not have made a determination
within 60 days after receipt by the Company of the request therefor, the requisite determination of
entitlement to indemnification shall be deemed to have been made and Indemnitee shall be entitled
to such indemnification, absent (i) a misstatement by Indemnitee of a material fact, or an omission
of a material fact necessary to make Indemnitee’s statement not materially misleading, in
connection with the request for indemnification, or (ii) a prohibition of such indemnification
under applicable law; provided, however, that such 60-day period may be extended
for a reasonable time, not to exceed an additional 30 days, if the person, persons or entity making
the determination with respect to entitlement to indemnification in good faith requires such
additional time for the obtaining or evaluating of documentation and/or information relating
thereto; and provided, further, that the foregoing provisions of Section 10(b)
shall not apply (i) if the determination of entitlement to indemnification is to be made by the
stockholders pursuant to Section 9(b) of this Agreement and if (A) within 15 days after receipt by
the Company of the request for such determination the Board has resolved to submit such
determination to the stockholders for their consideration at an annual meeting thereof to be held
within 75 days after such receipt and such determination is made thereat, or (B) a special meeting
of stockholders is called within 15 days after such receipt for the purpose of making such
determination, such meeting is held for such purpose within 60 days after having been so called and
such determination is made thereat, or (ii) if the determination of entitlement to indemnification
is to be made by Independent Counsel pursuant to Section 9(b) of this Agreement.

          (c) The termination of any Proceeding or of any claim, issue or matter therein, by judgment,
order, settlement, conviction or upon a plea of nolo contendere or its equivalent, shall not
(except as otherwise expressly provided in this Agreement) of itself adversely affect the right of
Indemnitee to indemnification or create a presumption that Indemnitee did not act in

5

 

good faith and in a manner which he reasonably believed to be in or not opposed to the best
interests of the Company, and with respect to any criminal Proceeding, that Indemnitee had
reasonable cause to believe that his conduct was unlawful.

     11. Remedies of Indemnitee.

          (a) In the event that (i) a determination is made pursuant to Section 9 of this Agreement that
Indemnitee is not entitled to indemnification under this Agreement, (ii) advancement of Expenses is
not timely made pursuant to Section 8 of this Agreement, (iii) the determination of entitlement to
indemnification is to be made by Independent Counsel pursuant to Section 9(b) of this Agreement and
such determination shall not have been made and delivered in a written opinion within 90 days after
receipt by the Company of the request for indemnification, (iv) payment of indemnification is not
made pursuant to Section 5 of this Agreement within 10 days after receipt by the Company of a
written request therefor, or (v) payment of indemnification is not made within 10 days after a
determination has been made that Indemnitee is entitled to indemnification or such determination is
deemed to have been made pursuant to Section 9 or 10 of this Agreement, Indemnitee shall be
entitled to the arbitration remedy contained in Section 24 of this Agreement, of his entitlement to
such indemnification or advancement of Expenses. Indemnitee shall commence such proceeding seeking
an adjudication within 180 days following the date on which Indemnitee first has the right to
commence such proceeding pursuant to this Section 11(a).

          (b) In the event that a determination shall have been made pursuant to Section 9 of this
Agreement that Indemnitee is not entitled to indemnification, any arbitration proceeding commenced
pursuant to this Section 11 shall be conducted in all respects as a de novo trial on the merits and
Indemnitee shall not be prejudiced by reason of that adverse determination. If a Change of Control
shall have occurred, in any arbitration proceeding commenced pursuant to this Section 11, the
Company shall have the burden of proving the Indemnitee is not entitled to indemnification or
advancement of Expenses, as the case may be.

          (c) If a determination shall have been made or deemed to have been made pursuant to Section 9
or 10 of this Agreement that Indemnitee is entitled to indemnification, the Company shall be bound
by such determination in any arbitration proceeding commenced pursuant to this Section 11, absent
(i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to
make Indemnitee’s statement not materially misleading, in connection with the request for
indemnification, or (ii) a prohibition of such indemnification under applicable law.

          (d) The Company shall be precluded from asserting in any arbitration proceeding commenced
pursuant to this Section 11 that the procedures and presumptions of this Agreement are not valid,
binding and enforceable and shall stipulate in any such arbitration that the Company is bound by
all the provisions of this Agreement.

          (e) In the event that Indemnitee, pursuant to this Section 11, seeks arbitration, involving
the Company, to enforce his rights under, or to recover damages for breach of, this Agreement,
Indemnitee shall be entitled to recover from the Company, and shall be indemnified by the Company
against, any and all Expenses (of the types described in the definition of

6

 

Expenses in Section 1 of this Agreement) actually and reasonably incurred by him in such
judicial adjudication, but only if he prevails therein. If it shall be determined in said
arbitration that Indemnitee is entitled to receive part but not all of the indemnification or
advancement of Expenses sought, the Expenses incurred by Indemnitee in connection with such
arbitration shall be appropriately prorated.

     12. Non-Exclusivity; Survival of Rights; Insurance; Subrogation.

          (a) The rights of indemnification and to receive advancement of Expenses as provided by this
Agreement shall not be deemed exclusive of any other rights to which Indemnitee may at any time be
entitled under applicable law, the Certificate of Incorporation, the Bylaws, any agreement, a vote
of stockholders or a resolution of directors, or otherwise. No amendment, alteration or repeal of
this Agreement or any provision hereof shall be effective as to any Indemnitee with respect to any
action taken or omitted by such Indemnitee in his Corporate Status prior to such amendment,
alteration or repeal.

          (b) To the extent that the Company maintains an insurance policy or policies providing
liability insurance for directors, officers, employees, agents or fiduciaries of the Company or of
any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise
which such person serves at the request of the Company, Indemnitee shall be covered by such policy
or policies in accordance with its or their terms to the maximum extent of the coverage available
for any such director, officer, employee or agent under such policy or policies.

          (c) In the event of any payment under this Agreement, the Company shall be subrogated to the
extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all papers
required and take all action necessary to secure such rights, including execution of such documents
as are necessary to enable the Company to bring suit to enforce such rights.

          (d) The Company shall not be liable under this Agreement to make any payment of amounts
otherwise indemnifiable hereunder if and to the extent that Indemnitee has otherwise actually
received such payment under any insurance policy, contract, agreement or otherwise.

          (e) The Company may, to the full extent authorized by law, create a trust fund, grant a
security interest and/or use other means (including, without limitation, letters of credit, surety
bonds and other similar arrangements) to ensure the payment of such amounts as may become necessary
to effect indemnification provided hereunder.

     13. Duration of Agreement. This Agreement shall continue until and terminate upon the
later of: (a) six years after the date that Indemnitee shall have ceased to serve as a director,
officer, employee, agent or fiduciary of the Company or of any other corporation, partnership,
joint venture, trust, employee benefit plan or other enterprise which Indemnitee served at the
request of the Company; or (b) the final termination of all pending Proceedings in respect of which
Indemnitee is granted rights of indemnification or advancement of Expenses hereunder

7

 

and of any proceeding commenced by Indemnitee pursuant to Section 11 of this Agreement
relating thereto.

     14. Gender. Use of the masculine pronoun shall be deemed to include usage of the
feminine pronoun where appropriate.

     15. Exceptions to Indemnification Rights. Notwithstanding any other provision of this
Agreement, except for Indemnification or advancement of Expenses in a Proceeding to enforce or
claim therein to enforce the provisions of that Agreement, Indemnitee shall not be entitled to
Indemnification or advancement of Expenses with respect to any Proceeding, or any claim therein,
brought or made by him against the Company. Provided further that no right of indemnification under
the provisions set forth herein shall be available to any Indemnitee unless within 10 days after
the later of institution of or learning of any such Proceeding he shall have offered the Company in
writing the opportunity to handle and defend such Proceeding at its own expense.

     16. Successors. Subject to the provisions of this Agreement, this Agreement shall be
binding upon and inure to the benefit of the parties hereto and their respective legal
representatives, successors and assigns.

     17. Severability. In the event any parts of this Agreement are found to be void, the
remaining provisions of this Agreement shall nevertheless be binding with the same effect as though
the void parts were deleted.

     18. Counterparts. This Agreement may be executed in one or more counterparts, each of
which shall be deemed an original but all of which together shall constitute one and the same
instrument. The execution of this Agreement may be by actual or facsimile signature.

     19. Benefit. This Agreement shall be binding upon and inure to the benefit of the
parties hereto and their legal representatives, successors and assigns.

     20. Notices and Addresses. All notices, offers, acceptance and any other acts under
this Agreement (except payment) shall be in writing, and shall be sufficiently given if delivered
to the addressee in person, by Federal Express or similar receipted delivery, by facsimile delivery
or, if mailed, postage prepaid, by certified mail, return receipt requested, as follows:

	 	 	 
	To the Company:
	 	PharmaNet Development Group, Inc.
	 
	 	504 Carnegie Center
	 
	 	Princeton, NJ 08540-6242
	 
	 	Facsimile: (609) 514-0390
	 
	 	Attention: Chief Executive Officer
	 
	 	 
	With a Copy to:
	 	Morgan, Lewis & Bockius
	 
	 	502 Carnegie Center
	 
	 	Princeton, NJ 08540
	 
	 	Facsimile:  (609) 919-6701
	 
	 	Attention: Denis Segota, Esq.

8

 

To Indemnitee:

or to such other address as either of them, by notice to the other may designate from time to time.
The transmission confirmation receipt from the sender’s facsimile machine shall be evidence of
successful facsimile delivery. Time shall be counted to, or from, as the case may be, the delivery
in person or by mailing.

     21. Attorneys’ Fees. In the event that there is any controversy or claim arising out
of or relating to this Agreement, or to the interpretation, breach or enforcement thereof, and any
action or proceeding relating to this Agreement is filed, the prevailing party shall be entitled to
an award by the court of reasonable attorneys’ fees, costs and expenses.

     22. Oral Evidence. This Agreement constitutes the entire Agreement between the
parties and supersedes all prior oral and written agreements between the parties hereto with
respect to the subject matter hereof. Neither this Agreement nor any provision hereof may be
changed, waived, discharged or terminated orally, except by a statement in writing signed by the
party or parties against which enforcement or the change, waiver discharge or termination is
sought.

     23. Governing Law. This Agreement and any dispute, disagreement, or issue of
construction or interpretation arising hereunder whether relating to its execution, its validity,
the obligations provided herein or performance shall be governed or interpreted according to the
internal laws of the State of Delaware without regard to choice of law considerations.

     24. Arbitration. Any controversy, dispute or claim arising out of or relating to this
Agreement, or its interpretation, application, implementation, breach or enforcement which the
parties are unable to resolve by mutual agreement, shall be settled by submission by either party
of the controversy, claim or dispute to binding arbitration in Mercer County, New Jersey (unless
the parties agree in writing to a different location), before a single arbitrator in accordance
with the rules of the American Arbitration Association then in effect. In any such arbitration
proceeding the parties agree to provide all discovery deemed necessary by the arbitrator. The
decision and award made by the arbitrator shall be final, binding and conclusive on all parties
hereto for all purposes, and judgment may be entered thereon in any court having jurisdiction
thereof.

     25. Section or Paragraph Headings. Section headings herein have been inserted for
reference only and shall not be deemed to limit or otherwise affect, in any matter, or be deemed to
interpret in whole or in part any of the terms or provisions of this Agreement.

9

 

     IN WITNESS WHEREOF the parties hereto have set their hand and seals the day and year first
above written.

	 	 	 	 	 	 	 
	 	 	PHARMANET DEVELOPMENT GROUP, INC.
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Jeffrey P. McMullen,	 	 
	 

	 	 	 	President and Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	 	 	EMPLOYEE
	 
	 	 	 	 	 	 
	 	 	 

10Ex-10.39 Form of Director Restricted Stock Unit Ag

 

Exhibit 10.39

PHARMANET DEVELOPMENT GROUP, INC.

RESTRICTED STOCK UNIT ISSUANCE AGREEMENT

     RECITALS

A. The Board has adopted the Plan for the purpose of attracting and retaining the services of
selected employees who provide services to the Company (or any Related Corporations) and the
non-employee members of the Board.

B. *** (the “Participant”) is a non-employee Board member who is to render valuable services to the
Company in such capacity, and the Committee has approved the award of restricted stock units to the
Participant pursuant to this Agreement.

C. All capitalized terms in this Agreement shall have the meaning assigned to them in the attached
Appendix A.

     NOW, THEREFORE, it is hereby agreed as follows:

          1. Grant of Restricted Stock Units. The Company hereby awards to the Participant, as
of the Award Date, an award (the “Award”) of restricted stock units under the Plan. Each
restricted stock unit represents the right to receive one share of Common Stock on the vesting date
of that unit. The number of shares of Common Stock subject to the awarded restricted stock units,
the applicable vesting schedule for the restricted stock units and the underlying shares, the dates
on which those vested shares shall be issued to the Participant and the remaining terms and
conditions governing the Award shall be as set forth in this Agreement.

AWARD SUMMARY

	 	 	 
	Award Date:

	 	***
	 
	 	 
	Number of Shares Subject to
Award:

	 	*** shares of Common Stock (the “Shares”)
	 
	 	 
	Vesting Schedule:

	 	The Participant shall vest with respect to one-sixth of
the Shares on June 30 and December 31 and of each year
commencing December 31, 2006, provided the Participant
remains in continuous employment through each such date.
The Shares may vest on an accelerated basis prior to
these vesting dates in accordance with the provisions of
Paragraph 4 of this Agreement. In no event shall any
Shares vest after the date of the Participant’s
termination of employment.

 

 

	 	 	 
	Issuance Dates

	 	Each Share in which the Participant vests in accordance
with the foregoing Vesting Schedule shall be issued on the
date (the “Issue Date”) on which that Share so vests or as
soon thereafter as administratively practicable, but in
no event later than the close of the calendar year in which
such Issue Date occurs or (if later) the fifteenth (15th)
day of the third calendar month following such Issue Date.
The issuance of the Shares shall be subject to the
Company’s collection of any applicable Withholding Taxes in
accordance the procedures set forth in Paragraph 6 of this
Agreement.

          2. Limited Transferability. Prior to actual receipt of the Shares which vest and
become issuable hereunder, the Participant may not transfer any interest in the Award or the
underlying Shares. Any Shares which vest hereunder but which otherwise remain unissued at the time
of the Participant’s death may be transferred pursuant to the provisions of the Participant’s will
or the laws of inheritance.

          3. Cessation of Service as a Board Member. Should the Participant cease to serve as a
member of the Board for any reason prior to vesting in one or more Shares subject to this Award,
then the Award will be immediately cancelled with respect to those unvested Shares, and the number
of restricted stock units will be reduced accordingly. The Participant shall thereupon cease to
have any right or entitlement to receive any Shares under those cancelled units. The date on which
the Participant shall be deemed to cease service as a member of the Board shall be the date on
which he or she resigns or is removed from the Board, ceases Board service by reason of death or
disability or fails to be elected or re-elected to the Board at any meeting of the Company’s
stockholders at which he is stands for such election or re-election.

          4. Change in Control.

               (a) Any restricted stock units subject to this Award at the time of a Change in Control may be
assumed, or replaced with an economically equivalent award, by the successor corporation or a
parent or subsidiary of the successor corporation. In the event the restricted stock units are not
to be so assumed or replaced, then the Participant shall fully vest in the Award immediately prior
to the effective date of the Change in Control. The Shares subject to those vested units will be
issued on the Issue Date triggered by the Change in Control (or otherwise converted into the right
to receive the same consideration per share of Common Stock payable to the other stockholders of
the Company in consummation of that Change in Control and distributed at the same time as such
stockholder payments), subject to the Company’s collection of any applicable Withholding Taxes
pursuant to the provisions of Paragraph 6.

               (b) For the purposes of this Paragraph 4, the Award shall be considered “assumed” if,
following the Change in Control, the Award confers the right to receive, for each share of Common
Stock subject to the Award immediately prior to the Change in Control, the consideration (whether
stock, cash, securities or other property) received in the Change in Control by holders of Common
Stock for each share of Common Stock held on the effective date of the transaction (and if holders
were offered a choice of consideration, the type

2

 

of consideration chosen by the holders of a majority of the outstanding shares of Common
Stock); provided, however, that if such consideration received in the Change in Control is not
solely common stock of the successor corporation or its parent, the Committee may, with the consent
of the successor corporation, provide that the consideration to be received for each share of
Common Stock which vests and become issuable under this Award shall be comprised solely of common
stock of the successor corporation or its parent equal in fair market value to the per share
consideration received by holders of Common Stock in the Change in Control.

               (c) This Agreement shall not in any way affect the right of the Company to adjust, reclassify,
reorganize or otherwise change its capital or business structure or to merge, consolidate,
dissolve, liquidate or sell or transfer all or any part of its business or assets.

          5. Adjustment in Shares. In the event of any of the following transactions affecting
the outstanding Common Stock as a class without the Company’s receipt of consideration: any stock
split, reverse stock split, stock dividend, combination or exchange of shares, reclassification,
spin-off, extraordinary distribution (whether in cash, securities or other property) or any other
similar transaction affecting the Common Stock without the Company’s receipt of consideration
(other than a conversion of any convertible securities of the Company), equitable adjustments shall
be made to the total number and/or class of securities issuable pursuant to this Award. The
adjustments shall be made by the Committee in such manner as the Committee deems appropriate in
order to reflect such change and thereby preclude a dilution or enlargement of benefits hereunder.

          6. Issuance of Shares of Common Stock.

               (a) On the Issuance Date or as soon thereafter as practicable, the Company shall issue to or
on behalf of the Participant a certificate (which may be in electronic form) for the number of
shares of Common Stock underlying the restricted stock units which vest under the Award on such
date, subject, however, to the Company’s collection of any applicable Withholding Taxes.

               (b) Until such time as the Company provides the Participant with notice to the contrary, the
Company shall collect any Withholding Taxes required to be withheld with respect to the issuance of
the vested Shares hereunder through an automatic Share withholding procedure pursuant to which the
Company will withhold, at the time of such issuance, a portion of the Shares with a Fair Market
Value (measured as of the issuance date) equal to the amount of those taxes (the “Share
Withholding Method”); provided, however, that the amount of any Shares so withheld shall not exceed
the amount necessary to satisfy the Company‘s required withholding obligations using the minimum
statutory withholding rates. The Participant shall be notified in writing in the event such Share
Withholding Method is no longer available.

3

 

               (c) Should any Shares be issued at a time when the Share Withholding Method is not available, then
the Participant shall pay any Withholding Taxes required to be withheld with respect to the
issuance of vested Shares hereunder by delivering a check to the Company in the amount of the
Withholding Taxes.

               (d) In no event will any fractional shares be issued.

               (e) The holder of this Award shall not have any stockholder rights, including voting or
dividend rights, with respect to the Shares subject to the Award until the Participant becomes the
record holder of those Shares following their actual issuance after the satisfaction of the
applicable Withholding Taxes.

          7. Compliance with Laws and Regulations.

               (a) The issuance of shares of Common Stock pursuant to the Award shall be subject to
compliance by the Company and the Participant with all applicable requirements of law relating
thereto and with all applicable regulations of any stock exchange (or the Nasdaq Stock Market, if
applicable) on which the Common Stock may be listed for trading at the time of such issuance.

               (b) The inability of the Company to obtain approval from any regulatory body having authority
deemed by the Company to be necessary to the lawful issuance of any Common Stock hereby shall
relieve the Company of any liability with respect to the non-issuance of the Common Stock as to
which such approval shall not have been obtained. The Company, however, shall use its best efforts
to obtain all such approvals.

          8. Successors and Assigns. Except to the extent otherwise provided in this Agreement,
the provisions of this Agreement shall inure to the benefit of, and be binding upon, the Company
and its successors and assigns and the Participant, the Participant’s assigns, the legal
representatives, heirs and legatees of the Participant’s estate and any beneficiaries of the Award
designated by the Participant.

          9. Notices. Any notice required to be given or delivered to the Company under the
terms of this Agreement shall be in writing and addressed to the Company at its principal corporate
offices. Any notice required to be given or delivered to the Participant shall be in writing and
addressed to the Participant at the address indicated below Participant’s signature line on this
Agreement. All notices shall be deemed effective upon personal delivery or upon deposit in the
U.S. mail, postage prepaid and properly addressed to the party to be notified.

          10. Construction. This Agreement and the Award evidenced hereby are made and granted
pursuant to the Plan and are in all respects limited by and subject to the terms of the Plan. All
decisions of the Committee with respect to any question or issue arising under the Plan or this
Agreement shall be conclusive and binding on all persons having an interest in the Award.

4

 

          11. Governing Law. The interpretation, performance and enforcement of this Agreement
shall be governed by the laws of the State of Delaware without resort to that State’s
conflict-of-laws rules.

          12. No Impairment of Rights. This Agreement shall not in any way be construed or
interpreted so as to affect adversely or otherwise impair the right of the Company or the
stockholders to remove the Participant from the Board at any time in accordance with the provisions
of applicable law.

          13. Data Privacy.

               (a) The Participant hereby explicitly and unambiguously consents to the collection, use and
transfer, in electronic or other form, of the Participant’s personal data as described in this
Agreement by and among, as applicable, his or her employer or the recipient of his or her services,
the Company and its Related Corporations for the exclusive purpose of implementing, administering
and managing Participant’s participation in the Plan.

               (b) The Participant understands that his or her employer or the recipient of his or her
services, the Company and its Related Corporations, as applicable, hold certain personal
information about Participant regarding his or her employment or service, the nature and amount of
the Participant’s compensation and the fact and conditions of the Participant’s participation in
the Plan, including, but not limited to, the Participant’s name, home address and telephone number,
date of birth, social insurance number or other identification number, salary, nationality, job
title, any shares of stock or directorships held in the Company and its Related Corporations,
details of all options, awards or any other entitlement to shares of stock awarded, canceled,
exercised, vested, unvested or outstanding in the Participant’s favor, for the purpose of
implementing, administering and managing the Plan (the “Data”). The Participant understands that
the Data may be transferred to any third parties assisting in the implementation, administration
and management of the Plan, that these recipients may be located in the Participant’s country, or
elsewhere, and that the recipient’s country may have different data privacy laws and protections
than the Participant’s country. The Participant understands that the Participant may request a
list with the names and addresses of any potential recipients of the Data by contacting his or her
local human resources representative. The Participant authorizes the recipients to receive,
possess, use, retain and transfer the Data, in electronic or other form, for the purposes of
implementing, administering and managing the Participant’s participation in the Plan, including any
requisite transfer of such Data as may be required to a broker or other third party. The
Participant understands that the Data will be held only as long as is necessary to implement,
administer and manage the Participant’s participation in the Plan. The Participant understands
that he or she may, at any time, view the Data, request additional information about the storage
and processing of the Data, require any necessary amendments to the Data or refuse or withdraw the
consents herein, in any case without cost, by contacting in writing the

5

 

Participant’s local human resources representative. The Participant understands, however,
that refusing or withdrawing his or her consent may affect the Participant’s ability to participate
in the Plan. For more information on the consequences of refusal to consent or withdrawal of
consent, the Participant understands that the Participant may contact his or her local human
resources representative.

IN WITNESS WHEREOF, the parties have executed this Agreement on the day and year first indicated
above.

	 	 	 	 	 	 	 
	 	 	PHARMANET DEVELOPMENT GROUP, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	Signature:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Jeffrey P. McMullen	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	President and Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	 	 	PARTICIPANT	 	 
	 
	 	 	 	 	 	 
	 

	 	Signature:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Address:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 

	 	 

6

 

APPENDIX A

DEFINITIONS

The following definitions shall be in effect under the Agreement:

          A. Agreement shall mean this Restricted Stock Unit Issuance Agreement.

          B. Award shall mean the award of restricted stock units made to the
Participant pursuant to the terms of the Agreement.

          C. Award Date shall mean the date the restricted stock units are awarded to
the Participant pursuant to the Agreement and shall be the date indicated in Paragraph 1 of
the Agreement.

          D. Board shall mean the Company’s Board of Directors.

          E. Change in Control shall mean the occurrence of any of the following events:

          (i) any “person” (as such term is used in Sections 13(d) and 14(d) of the
Exchange Act) becomes the “beneficial owner” (as defined in Rule 13d-3 of the
Exchange Act), directly or indirectly, of securities of the Company representing
fifty percent (50%) or more of the total voting power represented by the Company’s
then outstanding voting securities;

          (ii) the consummation of the sale or disposition by the Company of all or
substantially all of the Company’s assets; or

          (iii) the consummation of a merger or consolidation of the Company with any
other corporation, other than a merger or consolidation which would result in the
voting securities of the Company outstanding immediately prior thereto continuing to
represent (either by remaining outstanding or by being converted into voting
securities of the surviving entity or its parent) at least fifty percent (50%) of
the total voting power represented by the voting securities of the Company or such
surviving entity or its parent outstanding immediately after such merger or
consolidation.

          F. Code shall mean the Internal Revenue Code of 1986, as amended.

          G. Committee shall mean the committee of the Board acting in its capacity as
administrator of the Plan.

          H. Common Stock shall mean shares of the Company’s common stock.

A-1

 

          I. Company shall mean PharmaNet Development Group, Inc., a Delaware
corporation, and any successor corporation to all or substantially all of the assets or
voting stock of PharmaNet Development Group, Inc. which shall by appropriate action adopt
the Plan.

          J. Exchange Act shall mean the Securities Exchange Act of 1934, as amended.

          K. Fair Market Value per share of Common Stock on any relevant date shall be
determined as of the last trading day prior to the relevant date in accordance with the
following provisions:

          (i) the closing price on the principal market if the Common Stock is at the
time listed on a national securities exchange, the Nasdaq Stock Market (“Nasdaq”) or
the National Association of Securities Dealers, Inc.’s Over the Counter Bulletin
Board Exchange;

          (ii) if the Common Stock is not listed on a national securities exchange,
Nasdaq or the Bulletin Board, then the closing price if reported or the average bid
and asked price for the Company’s shares as listed in the National Quotation
Bureau’s “pink sheets”;

          (iii) if there are no prices available under clause (i) or (ii), then fair
market value shall be based upon the average closing bid and asked price as
determined following a polling of all dealers making a market in the Common Stock;
or

          (iv) if there is no regularly established trading market for the Common Stock,
the fair market value shall be established by the Board or the Committee taking into
consideration all relevant factors including the most recent price at which the
Common Stock was sold.

          L. Plan shall mean the Company’s Amended and Restated 1999 Stock Option Plan.

          M. Participant shall mean the person to whom the Award is made pursuant to the
Agreement.

          N. Stock Exchange shall mean the American Stock Exchange or the New York Stock
Exchange.

          O. Related Corporation shall mean a corporation which is a subsidiary
corporation with respect to the Company within the meaning of Section 425(f) of the Code.

A-2

 

          P. Withholding Taxes shall mean any income tax, employment tax, social insurance,
payroll tax, contributions, payment on account obligations or other amounts required to be
withheld by the Company in connection with the issuance of the shares of Common Stock under
the Award.

A-3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00119-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00119-of-00352.parquet"}]]