Document:

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                                                                   Exhibit 10.18

                              EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT ("Agreement") is made and entered into as of the 1/st/
day of January, 2002 (the "Effective Date"), by and between INTERNATIONAL ASSETS
HOLDING CORPORATION, a Delaware corporation (the "Company"), and Edward R.
Cofrancesco (the "Executive").

                                 R E C I T A L S

     A.   The Company, directly or through its subsidiaries, operates a
financial services company, including a full-service securities brokerage firm
specializing in global investing, a registered investment advisor providing
clients with investment advisory services, and other securities businesses
servicing its clients.

     B.   The Executive shall be, pursuant to the terms of this Agreement, the
Executive Vice President and Chief Operating Officer of the Company, and may
hold such offices in its subsidiaries as may be appropriate for the conduct of
its business.

     C.   The Company is a publicly held entity, having previously offered
shares of the Company's common stock pursuant to a registration statement, and
continues to file reports as to the Company's business.

     D.   The Board of Directors of the Company (the "Board") considers it
essential to the best interests of the Company that the Executive remain with
the Company after the completion of the present term of his employment.

     E.   In order to induce the Executive to accept and continue his employment
with the Company, the Company desires to enter into this Agreement with the
Executive, and to be bound by it.

     F.   The Executive, desiring to accept and proposing to continue his
employment by the Company, agrees to be bound by the covenants herein.

     NOW THEREFORE, in consideration of the mutual covenants and agreements set
forth hereinafter, the Company and the Executive agree as follows:

     1.   Recitals. All of the above recitals are true and correct.

     2.   Term. The term of this Agreement shall be for a period of one year
commencing on the Effective Date, subject, however, to prior termination as
herein

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Employment Agreement of Edward R. Cofrancesco
Page 2

provided. Thereafter, this Agreement may be extended by the mutual written
agreement of the Company and the Executive on a yearly basis.

     3.   Duties. During the period of employment (except as otherwise agreed by
the Executive), the Executive will be employed as the Executive Vice President
and Chief Operating Officer of the Company and shall have powers and duties as
may from time to time be delegated to the Executive by the Chief Executive
Officer or the Board. The Executive shall report to the Chairman of the Board of
Directors of the Company. The Executive shall devote substantially all of the
Executive's business time to the affairs of the Company.

     4.   Indemnification. The Company agrees to defend, indemnify and hold
harmless the Executive ("Indemnified Party") for acts in his capacity as
Executive to the fullest extent permitted by Delaware corporate law at the
present time (or as such right of indemnity may be increased in the future). The
Company agrees to reimburse the Indemnified Party on a monthly basis for any
cost of defending any action or investigation (including reasonable attorneys'
fees and expenses) subject to an undertaking from the Indemnified Party to repay
the Company if the Indemnified Party is determined not to be entitled to such
indemnity by a court of competent jurisdiction.

     5.   Compensation and Related Matters.

          (a) Basic Salary. As a compensation for the duties to be performed by
the Executive hereunder, the Company will pay the Executive a base salary at an
annual rate of $150,000 per year of the Company through December 31, 2002, and
such annual salary shall thereafter increase effective as of the first day of
each succeeding calendar year commencing after December 31, 2002 by the greater
of (i) the change in the consumer price index during the last completed fiscal
year, or (ii) such other amount as the Board in its discretion determines to be
appropriate. The Executive's base salary shall be payable in accordance with the
customary payroll practices of the company as in effect from time to time during
the period of employment.

          (b)  Bonus Plan.

               (i)    In addition to the base salary, the Executive shall be
entitled to additional compensation in an amount determined by the Board taking
into account the consolidated pre-tax earnings of the Company (including its
subsidiaries) for each fiscal year that ends during the term hereof.

               (ii)   For purposes of this Section 5(b), the "consolidated
pre-tax earnings of the Company" shall be determined by the independent public
accountants then regularly servicing the Company, in accordance with generally
accepted accounting principles, consistently applied, based on the audited
consolidated financial statements of the Company for such fiscal year, which
determination shall be binding on the parties hereto.

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Employment Agreement of Edward R. Cofrancesco
Page 3

               (iii)  Additional compensation authorized by the Board shall be
paid within sixty days after the later of: (A) the date on which the Company's
independent accountants delivers its final report on the audited consolidated
financial statements of the Company for the fiscal year ending during the
calendar year during which this Agreement remains in effect, or (B) December
31/st/.

          (c)  Stock Options.

               (i)    The Executive shall be eligible to participate in the
Stock Option Plan (the "Plan") and shall be considered by the Company's Board or
the Compensation Committee to receive grants of options thereunder at the same
times as consideration shall be given by the Board or such committee to the
grants of stock options generally to senior executive officers of the Company.
If the Plan shall be terminated or if no options remain available for grant
thereunder, the Executive shall be entitled to participate in such other
incentive program as the Company may substitute for the Plan for its senior
executive officers.

               (ii)   In connection with the original employment of the
Executive by the Company effective as of December 22, 2000, the Company
committed to issue to the Executive 20,000 stock options granted December 22,
2000, an additional 20,000 stock options granted December 22, 2001, and an
additional 20,000 stock options granted December 22, 2002. It was agreed by the
parties that each set of stock options would have a three year vesting schedule,
and that each outstanding option would become fully vested and non-forfeitable
in the event of a change of control of the Company, and such terms are
incorporated herein.

          (d)  Additional Compensation. The Company may award additional bonuses
to the Executive from time to time in amounts as determined by the Board or a
committee of the Board, and such compensation shall be payable in the manner and
at the time or times directed by the Board or its committee.

          (e)  Reimbursement of Expenses. During the term of this Agreement, the
Company shall promptly pay or reimburse the Executive for all reasonable
business expenses actually incurred or paid by the Executive in the performance
of his services hereunder (including a monthly payment of $700.00 toward the
cost of leasing and maintaining a car for the use of the Executive, and the
provision of suitable liability insurance for that vehicle by the Executive for
the protection of the Executive and Company), all in accordance with the
policies and procedures of the Company for the reimbursement of business
expenses of its senior executive officers, provided that the Executive properly
accounts therefor in accordance with Company policy.

          (f)  Benefits. The Company shall, at its sole cost, and expense,
provide life insurance, medical insurance, disability insurance, retirement and
other benefits comparable to those provided by comparable companies to their
senior executive officers.

     6.   Vacation, Days Off. The Executive may take a maximum of 4 weeks
vacation, at times to be determined in the manner most convenient for the
business of the

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Employment Agreement of Edward R. Cofrancesco
Page 4

Company. In addition, the Executive may take time off at such times as may be
determined by the Board to attend such meetings and postgraduate courses as may
comply with regulatory and licensing requirements of the businesses conducted by
the Company, or which otherwise directly advance the interests of the Company.
The Company may, in its discretion, reimburse the Executive for some or all of
the expenses incurred to register for or attend such training courses.

     7.   Termination Provisions

          (a)  Termination

                    (i)    The Executive's employment hereunder shall
automatically terminate (A) upon the Executive's death or Disability (as
hereinafter defined); (B) upon written notice by the Company for "Cause" (as
hereinafter defined); or (C) upon 30 days written notice by either party.

                    (ii)   For purposes of this Agreement, "Disability" shall
have the same meaning as that term has under a disability policy maintained for
the Executive by the Company. If no such policy exists, or if payment of
benefits under the policy is not conditioned on meeting such a definition, then
"Disability" shall mean that the Executive is unable to perform his duties
hereunder on a full-time basis for three consecutive months after reasonable
accommodation by the Company.

                    (iii)  For purposes of this Agreement, the Company shall
have "Cause" to terminate the Executive's employment hereunder upon (A) the
willful failure by the Executive to substantially perform the Executive's duties
(other than any such failure resulting by the Executive's Disability) and
continuance of such failure for more than 30 days after the Company notifies the
Executive in writing of the Executive's failure to perform; (B) the engaging by
the Executive in willful misconduct which is injurious to the Company; (C) the
conviction of the Executive in a court of proper jurisdiction of a crime which
constitutes a felony in respect of the conduct of the business of the Company;
or (D) a finding by the National Association of Securities Dealers, Inc. (the
"NASD"), another self-regulatory body of competent jurisdiction (the "SRO"), or
U.S. Securities and Exchange Commission (the "SEC') that the Executive
personally violated its rules or regulations, and such finding or penalty
therefor restricts the Executive's ability to perform his obligations under this
Agreement. Notwithstanding the foregoing, the Executive shall not be deemed to
have personally violated roles or regulations of the NASD, an SRO, or the SEC,
if a finding or penalty imposed is based upon a finding that the Executive did
not adequately supervise such employee, but was not otherwise a party to the
acts constituting the misconduct by such other person. Further, the Executive
shall not be deemed to have been terminated for Cause unless and until there has
been delivered to the Executive notice that a resolution has been duly adopted
by the Board which finds that the Company has "Cause" to terminate the Executive
as contemplated in this Section 7(a), provided, that the Executive is terminated
for Cause upon conviction of a felony as identified in clause (C) above, and
upon the revocation of any license required under applicable law for the conduct
of the business of the Company by the Executive.

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Employment Agreement of Edward R. Cofrancesco
Page 5

          (b)  Compensation Upon Termination. If either (i) the Company shall
terminate the employment of the Executive for Cause pursuant to the provisions
of Section 7(a) hereof, or (ii) the Executive shall resign (other than as a
result of the violation of this Agreement by the Company), then the Company
shall pay the Executive 100% of the compensation set forth in Section 5 hereof
for 30 days following the date of the termination of employment. If the Company
shall terminate the employment of the Executive without Cause or the Executive
resigns as a result of a breach by the Company of its obligations to the
Executive, whether set forth herein or otherwise, then the Company shall pay the
Executive 100% of the compensation set forth in Section 5 hereof for the
remaining term of the Agreement, or six full months, whichever period shall be
greater.

     8.   Nondisclosure and Noncompetition.

     During the period of employment hereunder and for a period of one year
after termination of this Agreement (for whatever reason), the Executive shall
not, without the written consent of the Board or a person authorized thereby,
disclose to any person or appropriate for his own use, information, knowledge or
data which is not theretofore publicly known and in the public domain that is
obtained by the Executive while in the employ of the Company (which for purposes
of this Section 8 shall include the Company or any of its subsidiaries),
respecting information about the Company, or of any products, systems, programs,
procedures, manuals, guides, confidential reports and communications,
improvements, designs or styles, customers, methods of distribution, sales,
prices, profits, costs, contracts, suppliers, business prospects, business
methods, techniques, research, trade secrets, or know-how of the Company, except
as the Executive may, in good faith, reasonably believe to be for the Company's
benefit. The Executive acknowledges that all information about the Company's
trading department customers, clients, prospects and pricing models constitutes
trade secrets under Section 688.002(4) of the Florida Statutes. Notwithstanding
the foregoing, following the termination of employment hereunder, the Executive
may disclose any information, knowledge or data of the type described to the
extent required by law in connection with any judicial or administrative
proceeding or inquiry.

     In addition to the foregoing and in the interest of protecting the
Company's trade secrets, during the term of this Agreement and for a period of
one year after termination of this Agreement for any reason, the Executive shall
not, without the written consent of the Board or a person authorized thereby,
directly or indirectly, do any business with respect to, or solicit any business
similar to the business of the Company from, any of the Company's customers,
clients, or accounts without the consent of the Company; provided, that this
prohibition shall not limit the authority of the Executive (or the Executive's
new employer) to solicit business from any client or customer of the Company
that is already a customer or client of that new employer thirty days prior to
the last day the Executive is employed by the Company. In addition, Executive
shall not directly, or through any company of which Executive is an officer,
employee, or more than 5% owner, hire any employee of the Company, or attempt to
solicit any employee of, or independent contractor used by, the Company to leave
the service of the Company.

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Employment Agreement of Edward R. Cofrancesco
Page 6

     Executive agrees that the restrictions of this Section 8 are reasonable as
to time, area, subject matter and otherwise due to the confidential nature of
the information and trade secrets of the Company, and the unique role and
substantial compensation of the Executive. The Executive acknowledges that he
entered into the covenants imposed by this Section 8 in connection with a prior
employment agreement, and that such restrictions are continued without
interruption under this Agreement. The covenants contained in this Section 8
shall survive the termination of the Executive's employment pursuant to this
Agreement. The foregoing provisions of this Section 8 shall be binding upon the
Executive's heirs, successors and legal representative. The Executive
acknowledges and confirms that the Company shall be entitled to specific
performance or injunctive relief without proof of monetary damages and without
further proof of irreparable injury in an action instituted in any court of
competent jurisdiction, or a proceeding before the NASD.

     9.   Other Directorships. The Company acknowledges and understands that the
Executive may be offered the opportunity to sit on the board of directors of
other public and private companies. The Executive agrees that he will not serve
on the board of directors of any company in competition with the Company and its
affiliates, and the Executive agrees that he will not accept any appointment to
another Board without the prior written consent of the Company, which consent
shall not be unreasonably withheld. The Company may determine that the Executive
shall not serve as a director, officer, or in any other position with an entity
that does not maintain liability insurance in an amount deemed to be adequate by
the Company. The Company agrees that the Executive shall be entitled to any fees
or salary received for his participation on the Boards of Directors of such
companies.

     10.  Attorneys' Fees. In the event a proceeding is brought to enforce or
interpret any part of this Agreement or the rights or obligations or any party
to this Agreement, the prevailing party shall be entitled to recover as an
element of such party's costs of suit, through all appeals, and not as damages,
reasonable attorneys' fees and paralegal's fees to be fixed by the arbitrator(s)
or court. The prevailing party shall be the party who is entitled to recover his
costs of suit or proceeding whether or not the action proceeds to final
judgment. A party not entitled to recover his costs shall not recover attorneys'
fees.

     11.  Successors and Assigns. This Agreement and the benefits hereunder are
personal to the Company and are not assignable or transferable by the Executive
without the written consent of the Company. The services to be performed by the
Executive hereunder may not be assigned by the Company, without the written
consent of the Executive, to any person, firm, corporation or other entity, with
the exception of a parent or subsidiary of the Company. Subject to the
foregoing, this Agreement shall be binding upon and inure to the benefit of the
Company and the Executive and the Executive's heirs and legal representatives,
and the Company's successors and permitted assigns.

     12.  Governing Law. This Agreement shall be construed in accordance with
and governed by the law of the State of Delaware, without regard to the
application of principles of conflict of laws.

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Employment Agreement of Edward R. Cofrancesco
Page 7

     13.  Notices. All notices and other communications required or permitted to
be given under this Agreement shall be in writing and shall be deemed to have
been given if delivered personally or sent by certified mail, return receipt
requested, postage prepaid, to the parties to this Agreement shall specify by
notice to the other:

                 If to the Company:     International Assets Holding Corporation
                                        220 East Central Parkway
                                        Altamonte Springs, Florida 32701

                    With a copy to:     Steven M. Felsenstein, Esq.,
                                        Greenberg, Traurig LLP
                                        2700 Two Commerce Square
                                        Philadelphia, Pennsylvania 19103

               If to the Executive:     Mr. Edward R. Cofrancesco
                                        xxxxxx
                                        Orlando, FL xxxxx

All notices and communications shall be deemed to have been received on the date
of delivery or on the third business day after the mailing thereof.

     14.  Modification: Waiver. No provisions of this Agreement may be modified,
waived or discharged unless such modification, waiver or discharge is approved
by the Board or a person authorized thereby, and is agreed to in a writing
signed by the Executive and such officer as may be specifically designated by
the Board. No waiver by either party hereto at the time of any breach by the
other party hereto of any condition or provision of this Agreement, or
compliance therewith, by such other party shall be deemed a waiver of similar or
dissimilar provisions or conditions at the same time, or at any prior or
subsequent time.

     15.  Complete Understanding. No agreements or representations, oral or
otherwise, express or implied, with respect to the subject matter hereof have
been made by either party which are not set forth expressly in this Agreement.
This Agreement supercedes all prior agreements and understandings between the
Company and the Executive concerning his employment by the Company as well as
his compensation, including stock options, in connection therewith, except that
the Executive acknowledges that certain confidentiality provisions contained
have been subsumed and incorporated herein, and shall be deemed to continue from
the inception of his employment by the Company.

     16.  Headings. The headings in this Agreement are for convenience of
reference only and shall not control or affect the meaning or construction of
this Agreement.

     17.  Severability. The invalidity of any one or more of the words, phrases,
sentences, clauses or sections contained in this Agreement shall not affect the
enforceability of the remaining portions of this Agreement or any part thereof,
all of which are inserted conditionally on their being valid in law, and if any
one or more of the words,

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Employment Agreement of Edward R. Cofrancesco
Page 8

phrases, sentences, clauses or sections contained in this Agreement shall be
declared invalid, this Agreement shall be construed as if such invalid word or
words, phrase or phrases, sentence or sentences, clause or clauses, or section
or sections had not been inserted.

     18.  Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original but all of which
together will constitute one and the same instrument.

     19.  Arbitration. Any dispute or controversy arising under or in connection
with this Agreement shall be settled exclusively by arbitration in Orlando,
Florida, in accordance with the rules of the American Arbitration Association
then in effect.

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the date
and year first above written.

                                        COMPANY:

                                        INTERNATIONAL ASSETS HOLDING
                                        CORPORATION, a Delaware corporation

                                        By: /s/ Diego J. Veitia
                                        Name:  Diego J. Veitia
                                        Title: Chairman and CEO

                                        EXECUTIVE:
                                        /s/ Edward R. Cofrancesco

                                        Edward R. Cofrancesco

                                        Witness:

                                        /s/ Jonathan C. Hinz

                                        Jonathan C. Hinz

                                        Date: June 4, 2002<PAGE>

                                                                  Exhibit 10.162

                               SEVERANCE AGREEMENT

     THIS AGREEMENT, effective the 1st day of January, 2001, by and between
Pharmaceutical Product Development, Inc. and its subsidiaries and affiliates
(collectively, "PPD") and (see Exhibit A) ("Employee").

     WHEREAS, Employee is a valued employee of PPD and in order to induce
Employee to remain in the employ of PPD, PPD desires to provide the severance
benefits hereinafter described in the event of a "Change in Control", as
hereinafter defined, of PPD.

     NOW, THEREFORE, it is agreed as follows:

     1.   Definitions

          1.01  "AFR" means the interest rate determined under Section 1274 of
the Code.

          1.02  "Base Amount" shall have the meaning set forth and shall be
determined as provided in Section 280G of the Code.

          1.03  "Change in Control" means (i) a change of control of a nature
that would be required to be reported in response to Item 6(e) of Schedule 14A
of Regulation 14A promulgated under the Securities Exchange Act of 1934, as
amended ("Exchange Act"), provided that such a Change in Control shall be deemed
to have occurred if any "person" (as such term is used in Sections 13(d) and
14(d)(2) of the Exchange Act) is or becomes the beneficial owner, directly or
indirectly, of securities of PPD representing 50% or more of the combined voting
power of PPD's then outstanding securities; (ii) a sale of substantially all of
the assets of PPD; or (iii) a liquidation of PPD.

          1.04  "Constructive Termination" means a termination of Employee's
employment by PPD during the Covered Period initiated by Employee after (i) a
substantial diminution or alteration in the duties of Employee, (ii) a reduction
by PPD in Employee's base salary in effect on the date of the Change in Control,
or (iii) the relocation of Employee's primary work location to a location that
is more than twenty-five (25) miles from Employee's primary work location prior
to the Change in Control. Constructive Termination specifically does not include
termination of Employee by reason of death, Disability or retirement at or after
age 65. Employee shall give PPD written notice of a Constructive Termination,
which notice shall provide a brief description of the circumstances which
Employee asserts gives rise to a right of Constructive Termination, and PPD
shall have ten (10) days from receipt of said notice within which to remedy said
circumstances.

<PAGE>

          1.05  "Covered Payment" means the amounts and benefits paid to
Employee pursuant to this Agreement, taken together with any amounts or benefits
otherwise paid or distributed to Employee by PPD.

          1.06  "Covered Period" means the time period commencing on the date of
and coincident with a Change of Control and ending one year thereafter.

          1.07  "Disability" means the inability of Employee to perform his
assigned duties for PPD for a period of three (3) months due to Employee's
physical or mental illness as determined by a reputable medical doctor.

          1.08  "Excess Parachute Payment" shall have the meaning set forth and
shall be determined as provided in Section 280G of the Code.

          1.09  "Excise Tax" shall mean the tax imposed under Section 4999 of
the Code on an Excess Parachute Payment.

          1.10  "Executive Consultant" shall mean the executive compensation or
comparable consultant used from time to time by PPD in designing its
compensation program for executive and senior management employees of PPD;
provided, however, that in its sole discretion PPD may at any time designate its
independent auditors as its Executive Consultant for the purpose of performing
any calculations required under Section 2.05 of this Agreement.

          1.11  "Final Determination" means a final determination by a court of
competent jurisdiction or a proceeding of the Internal Revenue Service or its
successor agency.

          1.12  "First Period" means the twelve-month period ending on the
Termination Date.

          1.13  "Internal Revenue Code" means the Internal Revenue Code of 1986
as heretofore or hereafter amended, and any successor code. References in this
agreement to specific sections of the Code shall also include any successor
sections.

          1.14  "Parachute Payments" shall have the meaning set forth and shall
be determined as provided in Section 280G of the Code.

          1.15  "Payment Cap" means the maximum amount which may be paid to
Employee under the terms of this Agreement without subjecting Employee to the
Excise Tax.

          1.16  "Payment Date" means the date thirty (30) days following the
Termination Date.

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<PAGE>

          1.17  "Stock Awards" means Employee's outstanding awards of PPD
non-qualified stock options or restricted stock as of the Termination Date.

          1.18  "Termination for Cause" means (i) an act or acts involving
fraud, embezzlement or theft from PPD, (ii) Employee's willful and repeated
failure to follow directions of the Board of Directors that continues for at
least ten (10) days following written notice of the Board of Directors of such
failure to follow directions, or (iii) termination for cause as defined in and
made pursuant to a then effective employment agreement, if any, between Employee
and PPD.

          1.19  "Termination Date" means the date on which Employee's employment
is terminated such that Employee is entitled to the compensation and benefits
provided for in Section 2 of this Agreement.

     2.   Compensation Upon Change of Control. If during the Covered Period (i)
PPD terminates Employee's employment for reason other than Termination for Cause
or (ii) Employee's employment is terminated by reason of Constructive
Termination, Employee shall be entitled to the following compensation and
benefits:

          2.01  Base Salary and Bonus. PPD shall pay Employee an amount equal to
(see Exhibit A) times the sum of Employee's (i) base salary for the First Period
(determined as if Employee was employed for the entire First Period if employed
for less than the First Period) and (ii) the greater of (x) Employee's target
bonus under the PPD incentive cash bonus plan in which Employee is eligible to
participate immediately prior to the Termination Date or (y) the average of the
cash bonuses received in the First Period and in the twelve-month period
immediately preceding the First Period, said amount to be paid on the Payment
Date.

          2.02  Unpaid and Deferred Compensation. PPD shall pay Employee any
bonus or deferred compensation (whether in the form of cash, stock or otherwise)
accrued but unpaid as of the Termination Date, said sum to be paid on the
Payment Date.

          2.03  Benefits. For a period of (see Exhibit A) after the Termination
Date, PPD shall continue to pay for and provide welfare benefits which Employee
was receiving immediately prior to the Termination Date, including life
insurance, health, medical, dental, vision and wellness, accidental death and
dismemberment and disability benefits; provided, however, that PPD's obligations
under this clause shall terminate from the date that Employee first becomes
eligible after the Termination Date for similar coverage under another
employer's plan.

          2.04  Stock Awards. Notwithstanding anything to the contrary in any
agreement for Stock Awards, (i) all unvested shares underlying Stock Awards
granted more than six months prior to the Termination Date shall become fully
vested as of the Termination Date, and (ii) Employee shall continue to be
treated under each award

                                        3

<PAGE>

agreement evidencing a Stock Award as if Employee was an employee of PPD until
the first to occur of (x) the third anniversary of the Termination Date, or (y)
the expiration of the exercise period provided for therein; provided, however,
in the event of Employee's death or his disability (as disability is defined in
the award agreement) after the Termination Date, the time for exercise after
death or such disability prescribed in the award agreement shall apply. The
provisions of this Section 2.04 shall also apply to any and all substitute
awards for nonqualified stock options and restricted stock granted to Employee
in exchange for Stock Awards to which this section applies.

          2.05  Limitation on Payments.

                a.   Application of Section 2.05. If a Covered Payment hereunder
would be an Excess Parachute Payment and would thereby subject Employee to the
Excise Tax, the provisions of this Section 2.05 shall apply to determine the
amounts payable to Employee pursuant to this Agreement.

                b.   Calculation of Benefits. At least fifteen (15) days prior
to the Payment Date, PPD shall notify Employee of the aggregate present value of
all amounts and benefits to which Employee would be entitled under this
Agreement and any other plan, program or arrangement with PPD as of the
Termination Date, together with the projected maximum payments, determined as of
such Date of Termination, that could be paid without Employee being subject to
the Excise Tax.

                c.   Imposition of Payment Cap. If (i) the aggregate value of
all amounts and benefits to which Employee would be entitled under this
Agreement and any other plan, program or arrangement with PPD exceeds the amount
which can be paid to Employee without Employee incurring an Excise Tax and (ii)
Employee would receive a greater net after-tax amount (taking into account all
applicable taxes payable by Employee, including an Excise Tax) by applying the
limitation contained in this Section 2.05(c), then the amounts otherwise payable
to Employee under this Section 2 shall be reduced to an amount equal to the
Payment Cap. If Employee receives reduced payments and benefits hereunder,
Employee shall have the right to designate which of the payments and benefits
otherwise provided for in this Agreement that Employee will receive in
connection with the application of the Payment Cap.

                d.   Application of Code Section 280G. The Executive Consultant
shall determine whether any part of the Covered Payment will be subject to the
Excise Tax and the amount of such Excise Tax. For purposes of such
determination, the Executive Consultant shall take into consideration and be
guided by the following:

                     (i)  such Covered Payment will be treated as Parachute
Payments and all Parachute Payments in excess of the Base Amount shall be
treated as subject to the Excise Tax, unless and except to the extent that in
the good faith judgment of the Executive Consultant, PPD has a reasonable basis
to conclude that such Covered Payment, in whole or in part, either do not
constitute Parachute Payments or represent

                                        4

<PAGE>

reasonable compensation for personal services actually rendered (within the
meaning of Section 280G of the Code) in excess of the Base Amount, or such
Parachute Payments are otherwise not subject to the Excise Tax, and

                   (ii) the value of any noncash benefits or any deferred
payment or benefit shall be determined by the Executive Consultant in accordance
with the principles of Section 280G of the Code.

              (e)  Applicable Tax Rates. For purposes of determining whether
Employee would receive a greater net after-tax benefit if the amounts payable
under this Agreement are reduced in accordance with Section 2.05(c), Employee
shall be deemed to pay:

                   (i)  federal income taxes at the highest applicable marginal
rate of federal income taxation for the calendar year in which the first amounts
are to be paid hereunder, and

                   (ii) any applicable state and local income taxes at the
highest applicable marginal rate of taxation for such calendar year, net of the
maximum reduction in federal income taxes which could be obtained from the
deduction of such state or local taxes if paid in such year;

provided, however, that Employee may request that such determination be made
based on Employee's individual tax circumstances, which shall govern such
determination so long as Employee provides to the Executive Consultant such
information and documents as the Executive Consultant shall reasonably request
to determine such individual circumstances.

              (f)  Adjustments in Respect to Payment Cap.

                   (i)  If Employee receives reduced payments and benefits under
Section 2.05 or if Section 2.05 is determined not to be applicable to Employee
because the Executive Consultant concludes that Employee is not subject to any
Excise Tax, and it is established pursuant to a Final Determination that,
notwithstanding the good faith of Employee and PPD in applying the terms of this
Agreement, the aggregate Parachute Payments paid to Employee or for Employee's
benefit are in an amount that would result in Employee being subject to an
Excise Tax and Employee would still be subject to the Payment Cap under the
provisions of Section 2.05(c), then the amount in excess of the Payment Cap
shall be deemed for all purposes to be a loan to Employee made on the date of
the receipt of such excess payment, which Employee shall have an obligation to
repay to PPD on demand, together with interest at the AFR, from the date of the
payment hereunder to the date of repayment by Employee.

                   (ii) If Section 2.05 is not applied to reduce Employee's
entitlements under this Section 2 because the Executive Consultant determines
that

                                        5

<PAGE>

Employee would not receive a greater net after-tax benefit by applying Section
2.05 and it is established pursuant to a Final Determination that,
notwithstanding the good faith of Employee and PPD in applying the terms of this
Agreement, Employee would have received a greater net after-tax benefit by
subjecting Employee's payments and benefits hereunder to the Payment Cap, then
the aggregate Parachute Payments paid to Employee or for Employee's benefit in
excess of the Payment Cap shall be deemed for all purposes a loan to Employee
made on the date of receipt of such excess payments, which Employee shall have
an obligation to repay to PPD on demand, together with interest at the AFR, from
the date of payment hereunder to the date of repayment by Employee.

                   (iii) If Employee receives reduced payments and benefits by
reason of this Section 2.05 and it is established pursuant to a Final
Determination that Employee could have received a greater amount without
exceeding the Payment Cap, then PPD shall promptly thereafter pay Employee the
aggregate additional amount which could have been paid without exceeding the
Payment Cap, together with interest on such amount at the AFR, from the original
payment due date to the date of actual payment by PPD.

         3.       Miscellaneous.

                  3.01 Successor-in-Interest. PPD will require any successor
(whether direct or indirect, by purchase, merger, consolidation or otherwise) to
all or substantially all of the business and/or assets of PPD, to expressly
assume and agree to perform this Agreement in the same manner and to the same
extent that PPD would be required to perform it if no succession had taken
place.

                  3.02 Binding Effect. This Agreement shall inure to the
benefit of and be enforceable by Employee's personal or legal representatives,
executives, administrators, successors, heirs, distributees, devisees and
legatees.

                  3.03 Notice. For purposes of this Agreement, notices and all
other communications provided for in the Agreement shall be in writing and shall
be given (i) by certified mail, return receipt requested, postage prepaid, (ii)
by personal delivery or (iii) by recognized overnight carrier, and shall be
deemed received when actually received. Notices shall be addressed as follows:

                  If to PPD:       Pharmaceutical Product Development, Inc.
                                   3151 South 17/th/ Street
                                   Wilmington, North Carolina 28412
                                   Attention:  Chief Executive Officer

                  If to Employee:  ________________________________________

                                   ________________________________________

                                   ________________________________________

                                   ________________________________________

                                        6

<PAGE>

Either party hereto may change the notice address by giving notice thereof in
the manner provided for herein.

                  3.04 Waiver. No waiver by either party hereto at any time of
any breach by the other party hereto of, or compliance with, any provision or
condition of this Agreement to be performed by such other party shall be deemed
a subsequent waiver of the same or similar provisions or conditions.

                  3.05 Entire Agreement. No agreements or representations, oral
or otherwise, expressed or implied, with respect to the subject matter hereof
have been made by either party which are not set forth expressly in this
agreement, and this Agreement supersedes and replaces in its entirety all prior
agreements and representations, expressed, implied, oral or otherwise, made by
PPD to or with Employee, including but not limited to that certain Severance
Agreement dated _______________ between PPD and Employee.

                  3.06 Governing Law. This Agreement shall be governed by and
interpreted under the laws of the State of North Carolina.

                  3.07 Unenforceability. The invalidity or unenforceability of
any provision of this Agreement shall not affect the validity or enforceability
of any other provision of this Agreement.

                  3.08 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.

                  3.09 Headings. Headings used in this Agreement are for
convenience only and shall not be used to construe or interpret this Agreement.

                  3.10 Enforcement by Employee. All legal expenses incurred by
Employee in the successful enforcement of any of the terms of this Agreement
shall be paid by PPD.

         IN WITNESS WHEREOF, the parties have executed this Agreement effective
the date first hereinabove set forth.

Pharmaceutical Product Development, Inc.             Employee

By: _________________________________                ________________________
Name:                                                Name:
Title:

                                        7

<PAGE>

                                    Exhibit A

                                               Section 2.01 Base Salary &
     Employee                                       Bonus Multiplier

Fredric N. Eshelman                                       three
Fred B. Davenport, Jr.                               two and one-half
Paul S. Covington                                    two and one-half
Patrick C. O'Connor                                       one
David R. Williams                                         one
Linda Baddour                                             one
Brainard Judd Hartman                                     one
W. Richard Staub                                          one
Kim V. Greene                                             one

                                        8

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