Document:

exv10w43

 

Exhibit 10.43

PHARMANET DEVELOPMENT GROUP, INC. AMENDED AND RESTATED ETHICS POLICY

Adopted by the Board of Directors

of PharmaNet Development Group, Inc.

On August 24, 2006 and as amended and restated on February 26, 2007

Introduction

          This Ethics Policy will serve as PharmaNet Development Group, Inc.’s (“PDG” or “Company”) Code
of Ethics (“Policy”) and as such they cover a wide spectrum of business practices and procedures,
and are applicable to all directors, officers and employees. They do not cover every issue that
may arise, but they set out some basic principles to guide all directors, officers and employees of
PDG. We expect all of our directors, officers and employees to comply with them and to seek to
avoid improper behavior or even the appearance of improper behavior. The Policy expressly apply to
all directors, officers and employees, even when we do not specifically refer to each of them.

          If a law conflicts with a policy in this Policy, you must comply with the law. If you have
any questions about these conflicts, you should ask your supervisor how to handle the situation.

          Those who violate this Policy may be subject to disciplinary action, which may include
termination of employment, depending on the nature of the violation. If you observe, learn of, or,
in good faith, suspect a violation of this Policy, you must follow the reporting procedures set
forth in Section 14 below.

          Statements in this Policy to the effect that certain actions may be taken only with approval
will be interpreted to mean that appropriate directors, officers or supervisors and managers must
give prior written approval before the proposed action may be undertaken.

 

 

          This Policy should be read in conjunction with the Company’s other policy statements,
including the Company’s Insider Trading Policy, Blackout Policy, as well as the discrimination and
harassment policies adopted by our Company and its respective subsidiaries.

1. Compliance with Laws, Rules and Regulations

          Obeying the law, both in letter and in spirit, is the foundation on which PDG’s ethical
standards and our reputation are built. All employees must respect and obey the laws of the cities,
states and nations in which we operate. A variety of laws apply to the Company and its operations,
and some carry criminal penalties. These laws include securities laws, and state laws relating to
duties owed by corporate directors and officers. Examples of criminal violations of the law
include: stealing, embezzling, misapplying corporate or bank funds, or making payments, whether
corporate or personal, of cash or other items of value that are intended to influence the judgment
or actions of political candidates, government officials or businesses in connection with any of
the Company’s activities. The Company must and will report all suspected criminal violations to
the appropriate authorities for possible prosecution, and will investigate, address and report, as
appropriate, non-criminal violations.

2. Conflicts of Interest

          A “conflict of interest” exists when a person’s private interest interferes in any way with
the interests of PDG. A conflict may arise when an employee, officer or director takes actions or
has interests that may make it difficult to perform his or her PDG work objectively and
effectively. Conflicts of interest may also arise when an employee, officer or director, or members
of his or her family, receives improper personal benefits as a result of his or her position with
PDG.

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          Conflicts of interest are prohibited as a matter of PDG policy, except under specific Policy
approved by the Board of Directors. Conflicts of interest may not always be clear-cut, so if you
have a question, you should consult with higher levels of management or PDG’s legal counsel. Any
employee, officer or director who becomes aware of a conflict or potential conflict must bring it
to the attention of a supervisor, manager or other appropriate personnel or utilize the procedures
set forth in Section 14 below.

          a. Outside Activities/Employment

          Any outside activity, including employment, should not significantly encroach on the time and
attention employees devote to their corporate duties, should not adversely affect the quality or
quantity of their work, and should not make use of corporate equipment, facilities, or supplies, or
imply (without the Company’s approval) the Company’s sponsorship or support. Employees are
prohibited from taking part in any outside employment without the Company’s prior approval. It is
almost always a conflict of interest for an PDG employee to work simultaneously for a competitor,
client or supplier. The best policy is for employees to avoid any direct or indirect business
connection with our clients, suppliers or competitors, except on our behalf. Directors may engage
in outside activities that do not interfere with their responsibilities as directors for the
Company, and do not give rise to an actual or apparent conflict of interest.

          b. Civic/Political Activities

          The Company allows each employee to dedicate up to eight hours per year to a Company sponsored
charitable or volunteer activity. In addition, employees may participate in other civic or
charitable activities as long as such participation does not encroach on the time and attention
they are expected to devote to their Company-related duties. For non-Company sponsored events,
activities are to be conducted in a manner that does not involve the Company or its assets

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or facilities, and does not create an appearance of Company involvement or endorsement, absent
prior written approval.

          c. Loans to Employees

          The Company will not make loans or extend credit guarantees to or for the personal benefit of
executive officers and directors, except as permitted by law. Loans or guarantees may be extended
to other employees only with Company approval.

          d. Gifts

          The purpose of business entertainment and gifts in a commercial setting is to create goodwill
and sound working relationships, not to gain unfair advantage with clients or other business
partners. No gift or entertainment should ever be offered, given, provided or accepted by any PDG
employee, family member of an employee, or agent unless it: (1) is not a cash gift, (2) is
consistent with customary business practices, (3) is not excessive in value, (4) cannot be
construed as a bribe or payoff, and (5) does not violate any laws or regulations. Under-the-table
payments to foreign physician-investigators is an example of inappropriate gifts or payments.
Employees should discuss with their supervisor any gifts or proposed gifts which may be considered
inappropriate.

3. Insider Trading

          Employees who have access to confidential information are not permitted to use or share that
information for trading purposes or for any other purpose except the conduct of our business. All
non-public information about PDG should be considered confidential information. Among other
things, trading while in possession of material inside information, or to “tip” others who might
make an investment decision on the basis of this information, is not only a violation of Company
policy, but may subject an employee to criminal or civil liability. In order to assist

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with compliance with laws against insider trading, PDG has adopted a specific policy governing
employees’ trading in securities of PDG, which policy is incorporated by reference into this
Policy. This policy has previously been distributed is available upon request. Questions about
the insider trading policy should be addressed to PDG’s legal counsel.

4. Corporate Opportunities

          Employees, officers and directors are prohibited from taking for themselves personally,
opportunities that are discovered through the use of corporate property, information, or position
without the written consent of the Board of Directors. No employee may use corporate property,
information, or position, for improper personal gain, and no employee may compete
with PDG directly or indirectly. Employees, officers and directors owe a duty to PDG to
advance its legitimate interests when the opportunity to do so arises.

5. Competition and Fair Dealing

          We seek to outperform our competition fairly and honestly. Stealing proprietary information,
possessing trade secret information that was obtained without the owner’s consent, or inducing such
disclosures by past or present employees of other companies is prohibited. Each employee should
endeavor to respect the rights of and deal fairly with PDG’s clients, suppliers, competitors and
other employees. No employee should take unfair advantage of anyone through manipulation,
concealment, abuse of privileged or confidential information, misrepresentation of material facts,
fraud, or any other intentional unfair dealing practice.

6. Discrimination and Harassment

          The diversity of PDG’s employees is a tremendous asset. We are firmly committed to providing
equal opportunity in all aspects of employment and will not tolerate any illegal discrimination or
harassment. PDG’s Insider Trading Policy, Blackout Policy, as well as the

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discrimination and harassment policies adopted by our Company and its respective subsidiaries
are incorporated by reference into this Policy.

7. Health and Safety

          PDG strives to provide each employee with a safe and healthy work environment. Each employee
has responsibility for maintaining a safe and healthy workplace for all employees by following
safety and health rules and practices and reporting accidents, injuries and unsafe equipment,
practices or conditions.

          Violence and threatening behavior are not permitted. Employees should report to work in
condition to perform their duties, free from the influence of illegal drugs or alcohol. The use of
illegal drugs in the workplace will not be tolerated.

8. Record-Keeping

          PDG requires honest and accurate recording and reporting of information in order to make
responsible business decisions. For example, only the true and actual number of hours worked should
be reported.

          Some employees are authorized to use business expense accounts, which must be documented and
recorded accurately. If you are not sure whether a certain expense is legitimate, ask your
supervisor or PDG’s controller.

          All of PDG’s books, records, accounts and financial statements must be maintained in
reasonable detail, must appropriately reflect PDG’s transactions and must conform both to
applicable legal requirements and to PDG’s system of internal controls. Unrecorded or “-off the
books” funds or assets should not be maintained unless permitted by applicable law or regulation.

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          Business records and communications often become public, and we should avoid exaggeration,
derogatory remarks, guesswork, or inappropriate characterizations of people and companies that can be misunderstood. This applies equally to e-mail, internal memos, and
formal reports. Records should always be retained or destroyed according to PDG’s record retention
policies and communications.

9. Confidentiality

          Employees must maintain the confidentiality of confidential information entrusted to them by
PDG or its clients except when disclosure is authorized by PDG’s legal counsel or required or
protected by laws or regulations. Confidential information includes all non-public information that
might be of use to competitors, or harmful to PDG or its clients, if disclosed. It also includes
information that suppliers and clients, and our clinical research subjects, have entrusted to us.
The obligation to preserve confidential information continues even after employment ends. In
connection with this obligation, every employee is bound by a duty of confidentiality.

10. Protection and Proper Use of PDG Assets

          All employees should endeavor to protect PDG’s assets and ensure their efficient use. Theft,
carelessness, and waste have a direct impact on PDG’s profitability. Any suspected incident of
fraud or theft should be immediately reported for investigation. PDG equipment should not be used
for non-PDG business. Occasional and incidental personal use of PDG’s communications systems may
be permitted if it does not otherwise interfere with the Company’s operations. Use of the
Company’s communications systems or other property for any solicitations is prohibited.

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          The obligation of employees to protect PDG’s assets includes its proprietary information.
Proprietary information includes intellectual property such as trade secrets, patents, trademarks,
and copyrights, as well as business, marketing and service plans, ideas, designs, databases, records, salary information and any unpublished financial data and reports.
Unauthorized use or disclosure of this information would violate PDG policy and may subject the
employee to criminal or civil penalties.

11. Delegation of Authority

          Each employee, and particularly each of the Company’s officers, must exercise due care to
ensure that any delegation of authority is reasonable and appropriate in scope, and includes
appropriate and continuous monitoring. No authority may be delegated to employees who the Company
has reason to believe, through the exercise of reasonable due diligence, may have a propensity to
engage in illegal activities.

12. Payments to Government Personnel

          The U.S. Foreign Corrupt Practices Act prohibits giving anything of value, directly or
indirectly, to officials of foreign governments or foreign political candidates in order to obtain
or retain business. It is strictly prohibited to make illegal payments to government officials of
any country. The Act also applies to the making of improper payments to obtain business from
commercial clients in the United States.

          In addition, the U.S. government has a number of laws and regulations regarding business
gratuities that may be accepted by U.S. government personnel. The promise, offer or delivery to an
official or employee of the U.S. government of a gift, favor or other gratuity in violation of
these rules violates PDG policy and may be a criminal offense. State and local governments, as
well as foreign governments, may have similar rules. Gifts or payments to non-government

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individuals are also prohibited unless they meet the criteria set forth in Section 2. Please
contact the Company’s legal counsel if you have questions in this area.

13. Waivers of This Ethics Policy

          Any waiver of this Policy for executive officers or directors may be made only by the Board of
Directors and will be promptly disclosed as required by law, regulation or listing standards.
Requests for a waiver of a provision of this Policy must be submitted in writing to the Chief
Financial Officer or Board of Directors for appropriate review and decision. The Audit Committee
must review and approve any “related party” transaction as defined in Item 404(a) of Regulation S-K
and section 17 (below) before it is consummated.

14. Reporting Any Illegal or Unethical Behavior

          Employees are encouraged to talk to supervisors, managers or other appropriate personnel about
observed illegal or unethical behavior and when in doubt about the best course of action in a
particular situation. It is the policy of PDG not to allow retaliation for reports of misconduct by
others made in good faith by employees. Employees are expected to cooperate in internal
investigations of misconduct.

          Any employee may submit a good faith concern regarding questionable accounting or auditing
matters or other matters without fear of dismissal or retaliation of any kind to our whistleblower
hotline run by a third-party service provider, The Network, who may be contacted, effective
September 15, 2006, at 1-800-528-4577 or www.tnwinc.com/webreport, or Mr. Jack Levine, CPA, who is
chairman of our Audit Committee. He may be reached as follows: 16855 NE 2“d Avenue, Suite 303,
North Miami Beach, FL 33162, (305) 651-0400. You may also submit such a concern to our outside
counsel, Denis Segota, Esquire, Morgan Lewis & Bockius LLP, 502 Carnegie Center, Princeton, NJ
08540, (609) 919-6622.

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15. Compliance Guidance

          Because this Policy cannot anticipate every situation that will arise, here are a few
suggestions on how to approach and analyze a new question or issue:

	•	 	Make sure you have all the facts in order to reach the right solutions; we must be as fully
informed as possible.
	 
	•	 	Ask yourself: What specifically am I being asked to do? Does it seem unethical or improper?
This will enable you to focus on the specific question you are faced with, and the
alternatives you have. Use your judgment and common sense.
	 
	•	 	Clarify your responsibility and role. In most situations, there is shared responsibility.
Are your colleagues informed? It may help to get others involved and discuss the problem.
	 
	•	 	Discuss the problem with your supervisor. This is the basic guidance for all situations. In many
cases, your supervisor will be more knowledgeable about the question, and will appreciate
being brought into the decision-making process. Remember that it is your supervisor’s
responsibility to help solve problems.
	 
	•	 	Seek help from PDG resources. In the rare case where it may not be appropriate to discuss
an issue with your supervisor, or where you do not feel comfortable approaching your
supervisor with your question, discuss it with the Chief Financial Officer, your office
manager or a human resources officer.

16. Special Policies with Respect to Certain Officers

          The Chief Executive Officer (“CEO”), all senior financial officers, including the Chief
Financial Officer (“CFO”), the principal accounting officer or controller, and other persons
performing similar functions (collectively, the “Senior Executive, Financial and Accounting
Officers”), are bound by the provisions set forth above including those relating to ethical
conduct, conflicts of interest and compliance with law. In addition, the Senior Executive,
Financial and Accounting Officers are subject to the following additional specific policies:

          a. The Senior Executive, Financial and Accounting Officers are responsible for full, fair,
accurate, timely and understandable disclosure in the reports and documents filed by PDG with the
Securities and Exchange Commission (“SEC”) and other public communications.

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Accordingly, it is the responsibility of the Senior Executive, Financial and Accounting
Officers promptly to bring to the attention of the Board of Directors or the Audit Committee any
information of which he or she may become aware that affects the disclosures made by PDG in its SEC
filings or other public communications, and to otherwise assist the Board and the Audit Committee
in fulfilling their responsibilities.

          b. The Senior Executive, Financial and Accounting Officers shall promptly bring to the
attention of the Board and the Audit Committee, any information he or she may have concerning (a)
significant deficiencies in the design or operation of internal controls which could adversely
affect PDG’s ability to record, process, summarize and report financial data or any material
weaknesses in internal controls, (b) any fraud, whether or not material, that involves management
or other employees who have a significant role in PDG’s financial reporting, disclosures or
internal controls.

          c. The Senior Executive, Financial and Accounting Officers shall promptly bring to the
attention of the Chief Financial Officer or the CEO, and to the Audit Committee, any information he
or she may have concerning any violation of this Policy, including any actual or apparent conflicts
of interest between personal and professional relationships, involving any management or other
employees who have a significant role in PDG’s financial reporting, disclosures or internal
controls.

          d. The Senior Executive, Financial and Accounting Officers shall promptly bring to the
attention of the Chief Financial Officer or the CEO, and to the Audit Committee, any information he
or she may have concerning evidence of a violation of the securities or other laws, rules or
regulations applicable to PDG and the operation of its business, by PDG or any agent thereof, or of
violation of this Policy or of these additional special policies and procedures.

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          e. The Board of Directors shall determine, or designate appropriate persons to determine,
appropriate actions to be taken in the event of violations of this Policy or these additional
special procedures by the Senior Executive, Financial and Accounting Officers. Such actions shall
be reasonably designed to deter wrongdoing and to promote accountability for adherence to this
Policy and to these additional special procedures, and shall include written notices to the
individual involved that the Board has determined that there has been a violation, censure by the
Board, demotion or re-assignment of the individual involved, suspension with or without pay or
benefits (as determined by the Board) and termination of the individual’s employment. In
determining what action is appropriate in a particular case, the Board of Directors or such
designee shall take into account all relevant information, including the nature and severity of the
violation, whether the violation was a single occurrence or repeated occurrences, whether the
violation appears to have been intentional or inadvertent, whether the individual in question had
been advised prior to the violation as to the proper course of action and whether or not the
individual in question had committed other violations in the past.

          f. The Company expects that the Senior Executive, Financial and Accounting Officers, and all
other employees who participate in the preparation of any part of the Company’s financial
statements, follow this Policy:

	 	•	 	Act with honesty and integrity, avoiding violations of this Policy, including actual or
apparent conflicts of interest with the Company in personal and professional relationships.
	 
	 	•	 	Disclose to the Chief Financial Officer any material transaction or relationship that
reasonably could be expected to give rise to any violations of this Policy, including
actual or apparent conflicts of interest with the Company.
	 
	 	•	 	Provide the Company’s other employees, consultants, and advisors with information that
is accurate, complete, objective, relevant, timely, and understandable.
	 
	 	•	 	Endeavor to ensure full, fair, timely, accurate, and understandable disclosure in the
Company’s periodic reports.

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	 	•	 	Comply with rules and regulations of federal, state, provincial and local governments,
and other appropriate private and public regulatory agencies.
	 
	 	•	 	Act in good faith, responsibly, and with due care, competence and diligence, without
misrepresenting material facts or allowing your independent judgment to be subordinated.
	 
	 	•	 	Respect the confidentiality of information acquired in the course of your work except
where you have Company approval or where disclosure is otherwise legally mandated or
protected. Confidential information acquired in the course of your work should not be used
for personal advantage.
	 
	 	•	 	Share and maintain skills important and relevant to the Company’s needs.
	 
	 	•	 	Proactively promote ethical behavior among peers in your work environment.
	 
	 	•	 	Achieve responsible use of and control over all assets and resources employed or
entrusted to you.
	 
	 	•	 	Record or participate in the recording of entries in the Company’s books and records
that are accurate to the best of your knowledge.

          The foregoing are set forth as policies for the Senior Executive, Financial and Accounting
Officers but, are, in fact, statements of mandatory conduct. It is also important to note that
Federal law requires that any waiver of, or amendment to the requirements in this Section will be
subject to public disclosure.

17. Related Party Hires/Transactions

          For the purpose of this Policy, the term “related party” shall mean:

Affiliates of PDG; entities for which investments are accounted for by the equity method
by PDG; trusts for the benefit of employees, such as pension and profit-sharing trusts
that are managed by or under the trusteeship of management; principal owners of PDG; its
management; members of the immediate families (including step-children, step-parents and
step-siblings) of principal owners of PDG and its management; and other parties with
which PDG may deal if one party controls or can significantly influence the management
or operating policies of the other to an extent that one of the transacting parties
might be prevented from fully pursuing its own separate interests. Another party also
is a related party if it can significantly influence the management or operating
policies of the transacting parties or if it has an ownership interest in one of the
transacting parties and can significantly influence the other to an extent that one or
more of the transacting parties might be prevented from fully pursuing its own separate
interests.

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          To ensure that individuals hired by PDG are hired based upon their merit and ability to
contribute to PDG and not due to their relationship to an employee of PDG, all new employee hires
must be reviewed by PDG’s Human Resources Department. In the event a “related party” is hired,
PDG’s Human Resources Department must communicate to the Audit Committee (the “Audit Committee”) of
the Board of Directors of PDG any related party hire, and the Audit Committee must approve that
related party hire. In addition, the Audit Committee must approve all related party transactions;
provided, however, that such review and approval shall not be necessary if the related
party transaction (a) does not require SEC disclosure pursuant to Regulation S-K, Item 402 or Item
404, and (b) the transaction is one in which PDGI was or is to be a participant and the amount
involved is less than $60,000 per person per year, and in which any related person had or will have
a direct or indirect material interest. In the event a transaction falls under (a) and (b) above,
then such transaction will only require approval of the Company’s Chief Executive Officer and Chief
Financial Officer.

14exv10w44

 

Exhibit 10.44

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).

B. *** (the “Participant”) is to render valuable services to the Company (or a Related Corporation)
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:

	 	August 3, 2007
	 
	 	 
	Number of Shares Subject
to Award:

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

	 	The Participant shall vest with respect to the
Shares in a series of five (5) equal,
successive, annual installments upon the
Participant’s completion of each year of
employment over the five (5)-year period
measured from the Award 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

 

 

	 	 	 
	 

	 	“Issuance
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 Issuance Date
occurs or (if later) the fifteenth (15th) day
of the third calendar month following such
Issuance 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 Employment. Except as otherwise provided for in Participant’s
employment agreement, should the Participant cease employment 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.

          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 Issuance 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 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

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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.

               (d) Notwithstanding anything to the contrary contained herein, the vesting of Participant’s
restricted stock units under the Award shall be subject to acceleration as provided for in
Participant’s employment agreement.

          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.

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               (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

4

 

binding on all persons having an interest in the Award. In addition to the foregoing, the
terms of this Restricted Stock Issuance Agreement are subject to the Participant’s employment
agreement with the Company, dated June 30, 2006, and if any of the terms of this Agreement conflict
with the Participant’s employment agreement, the employment agreement shall control.

          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. Employment at Will. Except as may otherwise be set forth in the Participant’s
employment agreement, nothing in this Agreement or in the Plan shall confer upon the Participant
any right to continue in service for any period of specific duration or interfere with or otherwise
restrict in any way the rights of the Company (or any Related Corporation employing or retaining
the Participant) or of the Participant, which rights are hereby expressly reserved by each, to
terminate the Participant’s service at any time for any reason, with or without cause, and with or
without notice, subject to compliance with local all applicable laws and the provisions of the
Participant’s employment agreement (if any) with the Company or any Related Corporation.

5

 

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

	 	 	 	 	 
	 	PHARMANET DEVELOPMENT GROUP, INC.

 	 
	 	Signature:  	 	 
	 	Name:  	John Hamill 	 
	 	Title:  	Executive Vice President & CFO 	 
	 
	 	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.

               P. Withholding Taxes shall mean the Federal, state and local income and employment
taxes required to be withheld by the Company in connection with the issuance of the shares of
Common Stock under the Award.

A-2

 

PHARMANET DEVELOPMENT GROUP, INC.

NOTICE OF GRANT OF STOCK OPTION

          Notice is hereby given of the following option grant (the “Option”) to purchase shares of the
Common Stock of Pharmanet Development Group, Inc. (the “Company”):

Optionee: _______________________________________________________________________________________

Grant Date: August 3, 2007

Vesting Commencement Date: August 3, 2007

Exercise Price: $26.91 per share

Number of Option Shares: ____________________________________________________________________ shares

Expiration Date: August 2, 2014

Type of Option: o   Incentive Stock Option

                         þ   Non-Qualified Stock Option

Exercise Schedule: The Option shall become exercisable with respect to the
Option Shares in a series of three (3) equal, successive, annual installments upon
Optionee’s completion of each year of employment over the three (3)-year period
measured from the Vesting Commencement Date. In no event shall the Option become
exercisable for any additional Option Shares after Optionee’s termination of
employment.

          Optionee understands and agrees that the Option is granted subject to and in accordance with
the terms of the Pharmanet Development Group, Inc. Amended and Restated 1999 Stock Plan (the
“Plan”). Optionee further agrees to be bound by the terms of the Plan and the terms of the Option
as set forth in the Stock Option Agreement attached hereto as Exhibit A. Optionee hereby
acknowledges the receipt of a copy of the official prospectus for the Plan in the form attached
hereto as Exhibit B. A copy of the Plan is available upon request made to the Corporate
Secretary at the Company’s principal offices.

          Employment at Will. Except as may otherwise be set forth in the Participant’s
employment agreement, nothing in this Agreement or in the Plan shall confer upon the Participant
any right to continue in service for any period of specific duration or interfere with or otherwise
restrict in any way the rights of the company (or any Related Corporation employing or retaining
the Participant) or of the Participant, which rights are hereby expressly reserved by each, to
terminate the Participant’s

 

 

service at any time for any reason, with or without cause, and with or without notice, subject
to compliance with local all applicable laws and the provisions of the Participant’s employment
agreement (if any) with the Company or any Related Corporation.

          Definitions. All capitalized terms in this Notice shall have the meaning assigned to
them in this Notice or in the attached Stock Option Agreement.

DATED: ________________________

	 	 	 
	PHARMANET DEVELOPMENT GROUP, INC.

	 
	By:
	 	 
	 

	 	 
	 

	 	John Hamill
	Title:

	 	Executive Vice President & CFO
 
 
	 

	 	 
 
 
	Address:
	 	 
	 

	 	 
 
	 

	 	 

ATTACHMENTS

Exhibit A — Stock Option Agreement

Exhibit B — Plan Summary and Prospectus

2

 

EXHIBIT B

PLAN SUMMARY AND PROSPECTUS

To be delivered.

3

 

PHARMANET DEVELOPMENT GROUP, INC.

STOCK OPTION AGREEMENT

RECITALS

     A. The Board has adopted the Plan for the purpose of retaining the services of selected
employees who provide services to the Company (or any Related Corporation).

     B. Optionee is to render valuable services to the Company (or a Related Corporation), and the
Committee has approved the grant of an option to Optionee pursuant to this Agreement.

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

          NOW, THEREFORE, it is hereby agreed as follows:

          1. Grant of Option. The Company hereby grants to Optionee, as of the Grant Date, an
option to purchase up to the number of Option Shares specified in the Grant Notice. The Option
Shares shall be purchasable from time to time during the option term specified in Paragraph 2 at
the Exercise Price.

          2. Option Term. This option shall have a maximum term of seven (7) years measured
from the Grant Date and shall accordingly expire at the close of business on the Expiration Date,
unless sooner terminated in accordance with Paragraph 5 of this Agreement or the provisions of the
Plan.

          3. Limited Transferability. This option shall be neither transferable nor assignable
by Optionee other than by will or the laws of inheritance following Optionee’s death and may be
exercised, during Optionee’s lifetime, only by Optionee.

          4. Dates of Exercise. This option shall become exercisable for the Option Shares in
one or more installments in accordance with the Exercise Schedule set forth in the Grant Notice.
As the option becomes exercisable for such installments, those installments shall accumulate, and
the option shall remain exercisable for the accumulated installments until the Expiration Date or
sooner termination of the option term under Paragraph 5 or 6.

 

 

          5. Termination of Employment. The option term specified in Paragraph 2 shall
terminate (and this option shall cease to be outstanding) prior to the Expiration Date should any
of the following provisions become applicable:

               (a) Should Optionee cease to remain in employment with the Company (or any Related
Corporation) for any reason (other than death, Permanent Disability or Misconduct) while this
option is outstanding, then Optionee shall have a three (3)-month period measured from the date of
such cessation of employment during which to exercise this option, but in no event shall this
option be exercisable at any time after the Expiration Date.

               (b) Should Optionee die while this option is outstanding, then this option may be exercised by
(i) the personal representative of Optionee’s estate or (ii) the person or persons to whom the
option is transferred pursuant to Optionee’s will or the laws of inheritance following Optionee’s
death. Any such right to exercise this option shall lapse, and this option shall cease to be
outstanding, upon the earlier of (i) the expiration of the twelve (12)-month period measured from
the date of Optionee’s death or (ii) the Expiration Date.

               (c) Should Optionee cease to remain in employment by reason of Permanent Disability while this
option is outstanding, then Optionee shall have a twelve (12)-month period measured from the date
of such cessation of Service during which to exercise this option. In no event shall this option
be exercisable at any time after the Expiration Date.

               (d) During the limited period of post-employment exercisability, this option may not be
exercised in the aggregate for more than the number of Option Shares for which this option is, at
the time of Optionee’s termination of employment, exercisable pursuant to the Exercise Schedule
specified in the Grant Notice or the provisions of the Plan. This option shall not become
exercisable for any additional Option Shares, whether pursuant to the normal Exercise Schedule
specified in the Grant Notice or the provisions of the Plan, following Optionee’s termination of
employment, except to the extent (if any) specifically authorized by the Committee pursuant to an
express written agreement with Optionee. Upon the expiration of such limited exercise period or
(if earlier) upon the Expiration Date, this option shall terminate and cease to be outstanding for
any exercisable Option Shares for which the option has not otherwise been exercised.

               (e) Should Optionee’s employment with the Company (or any Related Corporation) be terminated
for Misconduct or should Optionee otherwise engage in any Misconduct while this option is
outstanding, then this option shall terminate immediately and cease to remain outstanding.

          6. Change in Control. In the event of a change in control, the provisions of
Paragraph 14 of the Plan shall apply.

2

 

          7. Adjustment in Option 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), then
equitable adjustments shall be made to (i) the total number and/or class of securities subject to
this option and (ii) the Exercise Price in such manner as the Committee deems appropriate.

          8. Stockholder Rights. The holder of this option shall not have any stockholder
rights with respect to the Option Shares until such person shall have exercised the option, paid
the Exercise Price and become a holder of record of the purchased shares.

          9. Manner of Exercising Option.

               (a) In order to exercise this option with respect to all or any part of the Option Shares for
which this option is at the time exercisable, Optionee (or any other person or persons exercising
the option) must take the following actions:

               (i) Execute and deliver to the Company a Notice of Exercise for the Option Shares for
which the option is exercised or comply with such other procedures as the Company may
establish for notifying the Company of the exercise of this option for one or more Option
Shares.

               (ii) Pay the aggregate Exercise Price for the purchased shares in one or more of the
following forms:

               (A) cash or check made payable to the Company; or

               (B) through a special sale and remittance procedure pursuant to which Optionee
(or any other person or persons exercising the option) shall concurrently provide
irrevocable instructions (i) to a brokerage firm (reasonably satisfactory to the
Company for purposes of administering such procedure in accordance with the
Company’s pre-clearance/pre-notification policies) to effect the immediate sale of
the purchased shares and remit to the Company, out of the sale proceeds available on
the settlement date, sufficient funds to cover the aggregate Exercise Price payable
for the purchased shares plus all applicable income and employment taxes required to
be withheld by the Company by reason of such exercise and (ii) to the Company to
deliver the certificates for the purchased shares directly to such brokerage firm on
such settlement date in order to complete the sale.

3

 

     Except to the extent the sale and remittance procedure is utilized in connection with
the option exercise, payment of the Exercise Price must accompany the Notice of Exercise (or
other notification procedure) delivered to the Company in connection with the option
exercise.

               (iii) Furnish to the Company appropriate documentation that the person or persons
exercising the option (if other than Optionee) have the right to exercise this option.

               (iv) Make appropriate arrangements with the Company (or Related Corporation employing
Optionee) for the satisfaction of all applicable income and employment tax withholding
requirements applicable to the option exercise.

               (b) As soon as practical after the Exercise Date, the Company shall issue to or on behalf of
Optionee (or any other person or persons exercising this option) a certificate for the purchased
Option Shares, with the appropriate legends affixed thereto.

               (c) In no event may this option be exercised for any fractional shares.

          10. Compliance with Laws and Regulations.

               (a) The exercise of this option and the issuance of the Option Shares upon such exercise shall
be subject to compliance by the Company and Optionee with all applicable requirements of law
relating thereto and with all applicable regulations of any stock exchange (or the Nasdaq National
Market, if applicable) on which the Common Stock may be listed for trading at the time of such
exercise and 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 and sale of any Common Stock pursuant
to this option shall relieve the Company of any liability with respect to the non-issuance or sale
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.

          11. Successors and Assigns. Except to the extent otherwise provided in Paragraph 3,
the provisions of this Agreement shall inure to the benefit of, and be binding upon, the Company
and its successors and assigns and Optionee, Optionee’s assigns, the legal representatives, heirs
and legatees of Optionee’s estate.

          12. 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 Optionee shall be in writing and
addressed to Optionee at the address indicated

4

 

below Optionee’s signature line on the Grant Notice. 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.

          13. Construction. This Agreement and the option 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 this option.

          14. 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.

          15. Excess Shares. If the Option Shares covered by this Agreement exceed, as of the
Grant Date, the number of shares of Common Stock which may without stockholder approval be issued
under the Plan, then this option shall be void with respect to those excess shares, unless
stockholder approval of an amendment sufficiently increasing the number of shares of Common Stock
issuable under the Plan is obtained in accordance with the provisions of the Plan. In no event
shall the Option be exercisable with respect to any of the excess Option Shares unless and until
such stockholder approval is obtained.

          16. Additional Terms Applicable to an Incentive Option. In the event this option is
designated an Incentive Option in the Grant Notice, the following terms and conditions shall also
apply to the grant:

               (a) This option shall cease to qualify for favorable tax treatment as an Incentive Option if
(and to the extent) this option is exercised for one or more Option Shares: (A) more than three (3)
months after the date Optionee ceases to be an employee for any reason other than death or
Permanent Disability or (B) more than twelve (12) months after the date Optionee ceases to be an
employee by reason of Permanent Disability.

               (b) No installment under this option shall qualify for favorable tax treatment as an Incentive
Option if (and to the extent) the aggregate Fair Market Value (determined at the Grant Date) of the
Common Stock for which such installment first becomes exercisable hereunder would, when added to
the aggregate value (determined as of the respective date or dates of grant) of the Common Stock or
other securities for which this option or any other Incentive Options granted to Optionee prior to
the Grant Date (whether under the Plan or any other option plan of the Company or any parent or
Related Corporation) first become exercisable during the same calendar year, exceed One Hundred
Thousand Dollars ($100,000) in the aggregate. Should such One Hundred Thousand Dollar ($100,000)
limitation be exceeded in any calendar year, this option shall nevertheless become exercisable for
the excess shares in such calendar year as a Non-Statutory Option.

5

 

               (c) Should Optionee hold, in addition to this option, one or more other options to purchase
Common Stock which become exercisable for the first time in the same calendar year as this option,
then for purposes of the foregoing limitations on the exercisability of such options as Incentive
Options, this option and each of those other options shall be deemed to become first exercisable in
that calendar year, on the basis of the chronological order in which such options were granted,
except to the extent otherwise provided under applicable law or regulation.

6

 

APPENDIX

          The following definitions shall be in effect under the Agreement:

          A. Agreement shall mean this Stock Option Agreement.

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

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

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

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

          F. Company shall mean Pharmanet Development Group, Inc., a Delaware Company, 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.

          G. Exercise Date shall mean the date on which the option shall have been exercised in
accordance with Paragraph 9 of the Agreement.

          H. Exercise Price shall mean the exercise price per Option Share as specified in the
Grant Notice.

          I. Exercise Schedule shall mean the schedule set forth in the Grant Notice pursuant to
which the option is to become exercisable for the Option Shares in one or more installments over
the Optionee’s period of Service.

          J. Expiration Date shall mean the date on which the option expires as specified in the
Grant Notice.

          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”;

A-1

 

          (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. Grant Date shall mean the date of grant of the option as specified in the Grant
Notice.

          M Grant Notice shall mean the Notice of Grant of Stock Option accompanying the
Agreement, pursuant to which Optionee has been informed of the basic terms of the option evidenced
hereby.

          N. Incentive Option shall mean an option which satisfies the requirements of Code
Section 422.

          O. Misconduct shall mean the commission of any act of fraud, embezzlement or
dishonesty by Optionee, any unauthorized use or disclosure by Optionee of confidential information
or trade secrets of the Company (or any Related Corporation), or any other intentional misconduct
by Optionee adversely affecting the business or affairs of the Company (or any Related Corporation)
in a material manner. The foregoing definition shall not in any way preclude or restrict the right
of the Company (or any Related Corporation) to discharge or dismiss Optionee or any other person in
the service of the Company (or any Related Corporation) for any other acts or omissions, but such
other acts or omissions shall not be deemed, for purposes of the Plan or this Agreement, to
constitute grounds for termination for Misconduct.

          P. Non-Statutory Option shall mean an option not intended to satisfy the requirements
of Code Section 422.

          Q. Notice of Exercise shall mean the notice of option exercise in the form prescribed
by the Company..

          R. Option Shares shall mean the number of shares of Common Stock subject to the option
as specified in the Grant Notice.

          S. Optionee shall mean the person to whom the option is granted as specified in the
Grant Notice.

          T. Permanent Disability shall mean the inability of Optionee to engage in any
substantial gainful activity by reason of any medically determinable physical or mental impairment
which is expected to result in death or to be of continuous duration of twelve (12) months or more.

A-2

 

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

          V. 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-3

 

Canada Performance

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).

B. *** (the “Participant”) is to render valuable services to the Company (or a Related Corporation)
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:

	 	August 3, 2007
	 
	 	 
	Number of Shares
Subject
to Award:

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

Schedule:

	 	The Participant shall vest with respect to the
Shares on the date in 2010 that the Company
files its annual report on a Form 10-K with
the Securities and Exchange Commission
provided (1) the cumulative operating profit
(excluding non-recurring items) for the
preceding 3 fiscal year period (2007, 2008 and
2009) as reported on such Form 10-K’s is at
least $101 million and (2) the Participant
remains employed through each such filing
date. The Shares may vest on an accelerated
basis prior to this vesting date 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 “Issuance
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 Issuance Date
occurs or (if later) the fifteenth (15th) day
of the third calendar month following such
Issuance 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 Employment. Except as otherwise provided for in Participant’s
employment agreement, should the Participant cease employment 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. For purposes of this Agreement, the Participant’s period of employment
shall not include any period of notice of termination of employment, whether expressed or implied.
The Participant’s date of termination shall mean the date upon which he or she ceases active
employment following the provision of notification of termination or resignation from employment
and shall be determined solely by this Agreement and without reference to any other agreement,
written or oral, including the Participant’s contract of employment.

          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 Issuance 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.

2

 

               (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 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.

               (d) Notwithstanding anything to the contrary contained herein, the vesting of Participant’s
restricted stock units under the Award shall be subject to acceleration as provided for in
Participant’s employment agreement.

          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.

3

 

               (b) 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.

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

               (d) 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. In
addition to the foregoing, the

4

 

terms of this Restricted Stock Issuance Agreement are subject to the Participant’s employment
agreement with the Company, dated June 30, 2006, and if any of the terms of this Agreement conflict
with the Participant’s employment agreement, the employment agreement shall control.

          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. Employment at Will. Except as may otherwise be set forth in the Participant’s
employment agreement, nothing in this Agreement or in the Plan shall confer upon the Participant
any right to continue in service for any period of specific duration or interfere with or otherwise
restrict in any way the rights of the Company (or any Related Corporation employing or retaining
the Participant) or of the Participant, which rights are hereby expressly reserved by each, to
terminate the Participant’s service at any time for any reason, with or without cause, and with or
without notice, subject to compliance with local all applicable laws and the provisions of the
Participant’s employment agreement (if any) with the Company or any Related Corporation.

          13. Nature of Grant; No Entitlement; No Claim for Compensation. In accepting the
grant of this Award for the number of Shares as specified above, the Participant acknowledges the
following:

               (a) The Plan is established voluntarily by the Company; it is discretionary in nature and may
be modified, amended, suspended or terminated by the Company at any time.

               (b) The grant of this Award is voluntary and occasional and does not create any contractual or
other right to receive future grants of awards, or benefits in lieu of awards, even if awards have
been granted repeatedly in the past.

               (c) All decisions with respect to future awards, if any, will be at the sole discretion of the
Committee.

               (d) The Participant is voluntarily participating in the Plan.

               (e) This Award is an extraordinary item that does not constitute compensation of any kind for
services of any kind rendered to the Company or its Related Corporations (including, as applicable,
the Participant’s employer) and which is outside the scope of the Participant’s employment
contract, if any.

               (f) This Award is not part of the Participant’s normal or expected compensation or salary for
any purpose, including, but not limited to, calculating any severance, resignation, termination,
redundancy, end of service payments, bonuses, long-service awards, pension or retirement benefits
or similar payments.

5

 

               (g) In the event that the Participant’s employer is not the Company, the grant of the Award
will not be interpreted to form an employment contract or relationship with the Company and,
furthermore, the grant of the Award will not be interpreted to form an employment contract with the
Participant’s employer or any Related Corporations.

               (h) The future value of the underlying Shares is unknown and cannot be predicted with
certainty.

               (i) In consideration of the grant of this Award, no claim or entitlement to compensation or
damages shall arise from termination of the Award or diminution in value of the Award or any of the
Shares issuable under the Award from termination of the Participant’s employment by the Company or
the Participant’s employer, as applicable (and for any reason whatsoever and whether or not in
breach of contract or local labor laws), and the Participant irrevocably releases the Participant’s
employer, the Company and its Related Corporations, as applicable, from any such claim that may
arise; if, notwithstanding the foregoing, any such claim is found by a court of competent
jurisdiction to have arisen, then, by signing this Agreement, the Participant shall be deemed to
have irrevocably waived his or her entitlement to pursue such claim.

          14. 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, the Company and its Related
Corporations for the exclusive purpose of implementing, administering and managing the
Participant’s participation in the Plan.

               (b) The Participant understands that his or her employer, the Company and its Related
Corporations, as applicable, hold certain personal information about the Participant regarding his
or her employment, 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

6

 

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 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.

          15. Electronic Delivery. The Company may deliver any documents related to the Award,
the Plan or future awards that may be granted under the Plan by electronic means. Such means of
electronic delivery include, but do not necessarily include, the delivery of a link to a Company
intranet or the internet site of a third party involved in administering the Plan, the delivery of
the documents via e-mail or such other means of electronic delivery specified by the Company.
Participant hereby acknowledges that Participant has read this provision and consents to the
electronic delivery of the documents. Participant acknowledges that Participant may receive from
the Company a paper copy of any documents delivered electronically at no cost to Participant by
contacting the Company by telephone or in writing. Participant further acknowledges that
Participant will be provided with a paper copy of any documents if the attempted electronic
delivery of such documents fails. Similarly, Participant understands that Participant must provide
the Company with a paper copy of any documents if the attempted electronic delivery of such
documents fails.

          16. Confidentiality. The Participant agrees at all times during the vesting period
applicable to this Award and thereafter (including following termination of the Participant’s
employment) to hold in strictest confidence and not to use, or to disclose to any person, firm or
corporation, without the prior written consent of the Board, the performance criteria which are the
basis of the vesting of this Award.

7

 

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

	 	 	 	 	 
	 	PHARMANET DEVELOPMENT GROUP, INC.

 	 
	 	Signature:	
 	 
	 	 	Name: John Hamill 	 
	 	 	Title:    Executive Vice President & CFO	 
	 	

 	 
	 	PARTICIPANT

 	 
	 	Signature:	
 	 
	 	 	Name:  	                    	 
	 	 	Address:  	 	 
	 	 		 	 
	 

8

 

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.

          P. Withholding Taxes shall mean the income tax, employment tax, social insurance,
payroll tax, contributions, payment on account obligations or other

A-2

 

amounts required to be withheld by the Company in connection with the issuance of the shares
of Common Stock under the Award.

A-3

 

Canada

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).

B. *** (the “Participant”) is to render valuable services to the Company (or a Related Corporation)
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:

	 	August 3, 2007
	 
	 	 
	Number of Shares Subject
to Award:

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

	 	The Participant shall vest with respect to the
Shares in a series of five (5) equal,
successive, annual installments upon the
Participant’s completion of each year of
employment over the five (5)-year period
measured from the Award 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

 

 

	 	 	 
	 

	 	“Issuance 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 Issuance Date
occurs or (if later) the fifteenth (15th) day
of the third calendar month following such
Issuance 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 Employment. Except as otherwise provided for in Participant’s
employment agreement, should the Participant cease employment 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. For purposes of this Agreement, the Participant’s period of employment
shall not include any period of notice of termination of employment, whether expressed or implied.
The Participant’s date of termination shall mean the date upon which he or she ceases active
employment following the provision of notification of termination or resignation from employment
and shall be determined solely by this Agreement and without reference to any other agreement,
written or oral, including the Participant’s contract of employment.

          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 Issuance 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

2

 

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 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.

               (d) Notwithstanding anything to the contrary contained herein, the vesting of Participant’s
restricted stock units under the Award shall be subject to acceleration as provided for in
Participant’s employment agreement.

          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) 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.

3

 

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

               (d) 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. In
addition to the foregoing, the
terms of this Restricted Stock Issuance Agreement are subject to the Participant’s employment
agreement with the Company, dated June 30, 2006, and if any of the terms of this Agreement conflict
with the Participant’s employment agreement, the employment agreement shall control.

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. Employment at Will. Except as may otherwise be set forth in the Participant’s
employment agreement, nothing in this Agreement or in the Plan shall confer upon the Participant
any right to continue in service for any period of specific duration or interfere with or otherwise
restrict in any way the rights of the Company (or any Related Corporation employing or retaining
the Participant) or of the Participant, which rights are hereby expressly reserved by each, to
terminate the Participant’s service at any time for any reason, with or without cause, and with or
without notice, subject to compliance with local all applicable laws and the provisions of the
Participant’s employment agreement (if any) with the Company or any Related Corporation.

          13. Nature of Grant; No Entitlement; No Claim for Compensation. In accepting the
grant of this Award for the number of Shares as specified above, the Participant acknowledges the
following:

               (a) The Plan is established voluntarily by the Company; it is discretionary in nature and may
be modified, amended, suspended or terminated by the Company at any time.

               (b) The grant of this Award is voluntary and occasional and does not create any contractual or
other right to receive future grants of awards, or benefits in lieu of awards, even if awards have
been granted repeatedly in the past.

               (c) All decisions with respect to future awards, if any, will be at the sole discretion of the
Committee.

               (d) The Participant is voluntarily participating in the Plan.

               (e) This Award is an extraordinary item that does not constitute compensation of any kind for
services of any kind rendered to the Company or its Related Corporations (including, as applicable,
the Participant’s employer) and which is outside the scope of the Participant’s employment
contract, if any.

               (f) This Award is not part of the Participant’s normal or expected compensation or salary for
any purpose, including, but not limited to, calculating any severance, resignation, termination,
redundancy, end of service
payments, bonuses, long-service awards, pension or retirement benefits or similar payments.

               (g) In the event that the Participant’s employer is not the Company, the grant of the Award
will not be interpreted to form an employment contract or relationship with the Company and,
furthermore, the grant of the Award will not be

5

 

interpreted to form an employment contract with the
Participant’s employer or any Related Corporations.

               (h) The future value of the underlying Shares is unknown and cannot be predicted with
certainty.

               (i) In consideration of the grant of this Award, no claim or entitlement to compensation or
damages shall arise from termination of the Award or diminution in value of the Award or any of the
Shares issuable under the Award from termination of the Participant’s employment by the Company or
the Participant’s employer, as applicable (and for any reason whatsoever and whether or not in
breach of contract or local labor laws), and the Participant irrevocably releases the Participant’s
employer, the Company and its Related Corporations, as applicable, from any such claim that may
arise; if, notwithstanding the foregoing, any such claim is found by a court of competent
jurisdiction to have arisen, then, by signing this Agreement, the Participant shall be deemed to
have irrevocably waived his or her entitlement to pursue such claim.

          14. 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, the Company and its Related
Corporations for the exclusive purpose of implementing, administering and managing the
Participant’s participation in the Plan.

               (b) The Participant understands that his or her employer, the Company and its Related
Corporations, as applicable, hold certain personal information about the Participant regarding his
or her employment, 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

6

 

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 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.

               15. Electronic Delivery. The Company may deliver any documents related to the Award,
the Plan or future awards that may be granted under the Plan by electronic means. Such means of
electronic delivery include, but do not necessarily include, the delivery of a link to a Company
intranet or the internet site of a third party involved in administering the Plan, the delivery of
the documents via e-mail or such other means of electronic delivery specified by the Company.
Participant hereby acknowledges that Participant has read this provision and consents to the
electronic delivery of the documents. Participant acknowledges that Participant may receive from
the Company a paper copy of any documents delivered electronically at no cost to Participant by
contacting the Company by telephone or in writing. Participant further acknowledges that
Participant will be provided with a paper copy of any documents if the attempted electronic
delivery of such documents fails. Similarly, Participant understands that Participant must provide
the Company with a paper copy of any documents if the attempted electronic delivery of such
documents fails.

7

 

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

	 	 	 	 	 
	 	PHARMANET DEVELOPMENT GROUP, INC.

 	 
	 	Signature:  	 	 
	 	 	Name:  	John Hamill 	 
	 	 	Title:  	Executive Vice President & CFO 	 
	 
	 	PARTICIPANT

 	 
	 	Signature:  	 	 
	 
	 	 	Name:  	 	 
	 
	 	 	Address: 	 	 
	 
	 	 	 	 	 
	 

8

 

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.

          P. Withholding Taxes shall mean the income tax, employment tax, social insurance,
payroll tax, contributions, payment on account obligations or other

A-2

 

amounts required to be withheld by the Company in connection with the issuance of the shares
of Common Stock under the Award.

A-3

 

Cashless

PHARMANET DEVELOPMENT GROUP, INC.

STOCK OPTION AGREEMENT

RECITALS

     A. The Board has adopted the Plan for the purpose of retaining the services of selected
employees who provide services to the Company (or any Related Corporation).

     B. Optionee is to render valuable services to the Company (or a Related Corporation), and the
Committee has approved the grant of an option to Optionee pursuant to this Agreement.

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

          NOW, THEREFORE, it is hereby agreed as follows:

          1. Grant of Option. The Company hereby grants to Optionee, as of the Grant Date, an
option to purchase up to the number of Option Shares specified in the Grant Notice. The Option
Shares shall be purchasable from time to time during the option term specified in Paragraph 2 at
the Exercise Price.

          2. Option Term. This option shall have a maximum term of seven (7) years measured
from the Grant Date and shall accordingly expire at the close of business on the Expiration Date,
unless sooner terminated in accordance with Paragraph 5 of this Agreement or the provisions of the
Plan.

          3. Limited Transferability. This option shall be neither transferable nor assignable
by Optionee other than by will or the laws of inheritance following Optionee’s death and may be
exercised, during Optionee’s lifetime, only by Optionee.

          4. Dates of Exercise. This option shall become exercisable for the Option Shares in
one or more installments in accordance with the Exercise Schedule set forth in the Grant Notice.
As the option becomes exercisable for such installments, those installments shall accumulate, and
the option shall remain exercisable for the accumulated installments until the Expiration Date or
sooner termination of the option term under Paragraph 5 or 6.

          5. Termination of Employment. The option term specified in Paragraph 2 shall
terminate (and this option shall cease to be outstanding) prior to the Expiration Date should any
of the following provisions become applicable:

               (a) Should Optionee cease to remain in employment with the Company (or any Related
Corporation) for any reason (other than death, Permanent

 

 

Disability or Misconduct) while this
option is outstanding, then Optionee shall have a three (3)-month period measured from the date of
such cessation of employment during which to exercise this option, but in no event shall this
option be exercisable at any time after the Expiration Date.

               (b) Should Optionee die while this option is outstanding, then this option may be exercised by
(i) the personal representative of Optionee’s estate or (ii) the person or persons to whom the
option is transferred pursuant to Optionee’s will or the laws of inheritance following Optionee’s
death. Any such right to exercise this option shall lapse, and this option shall cease to be
outstanding, upon the earlier of (i) the expiration of the twelve (12)-month period measured from
the date of Optionee’s death or (ii) the Expiration Date.

               (c) Should Optionee cease to remain in employment by reason of Permanent Disability while this
option is outstanding, then Optionee shall have a twelve (12)-month period measured from the date
of such cessation of Service during which to exercise this option. In no event shall this option
be exercisable at any time after the Expiration Date.

               (d) During the limited period of post-employment exercisability, this option may not be
exercised in the aggregate for more than the number of Option Shares for which this option is, at
the time of Optionee’s termination of employment, exercisable pursuant to the Exercise Schedule
specified in the Grant Notice or the provisions of the Plan. This option shall not become
exercisable for any additional Option Shares, whether pursuant to the normal Exercise Schedule
specified in the Grant Notice or the provisions of the Plan, following Optionee’s termination of
employment, except to the extent (if any) specifically authorized by the Committee pursuant to an
express written agreement with Optionee. Upon the expiration of such limited exercise period or
(if earlier) upon the Expiration Date, this option shall terminate and cease to be outstanding for
any exercisable Option Shares for which the option has not otherwise been exercised.

               (e) Should Optionee’s employment with the Company (or any Related Corporation) be terminated
for Misconduct or should Optionee otherwise engage in any Misconduct while this option is
outstanding, then this option shall terminate immediately and cease to remain outstanding.

               (f) For purposes of this Agreement, Optionee’s period of employment shall not include any
period of notice of termination of employment, whether expressed or implied. Optionee’s date of
cessation of employment shall mean the date upon which Optionee ceases active performance of
services for the Company (or any Related Corporation) following the provision of such notification
of termination or resignation from employment and shall be determined solely by the Company under
this Agreement without reference to any other agreement, written or oral, including Optionee’s
contract of employment.

2

 

          6. Change in Control. In the event of a change in control, the provisions of
Paragraph 14 of the Plan shall apply.

          7. Adjustment in Option 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), then
equitable adjustments shall be made to (i) the total number and/or class of securities subject to
this option and (ii) the Exercise Price in such manner as the Committee deems appropriate.

          8. Manner of Exercising Option.

               (a) In order to exercise this option with respect to all or any part of the Option Shares for
which this option is at the time exercisable, Optionee (or any other person or persons exercising
the option) must take the following actions:

                    (i) Execute and deliver to the Company a Notice of Exercise for the Option Shares for
which the option is exercised or comply with such other procedures as the Company may
establish for notifying the Company of the exercise of this option for one or more Option
Shares.

                    (ii) Pay the aggregate exercise price for the purchased shares through a special sale
and remittance procedure pursuant to which Optionee (or any other person or persons
exercising the option) shall concurrently provide irrevocable instructions (i) to a
brokerage firm (reasonably satisfactory to the Company for purposes of administering such
procedure in accordance with the Company’s pre-clearance/pre-notification policies) to
effect the immediate sale of all the purchased shares and remit to the Company, out of the
sale proceeds available on the settlement date, sufficient funds to cover the aggregate
Exercise Price payable for the purchased shares plus all applicable Withholding Taxes and
(ii) to the Company to deliver the certificates for the purchased shares directly to such
brokerage firm on such settlement date in order to complete the sale. The remaining
proceeds shall be paid in cash to Optionee as determined by the Committee. The sale of the
purchased shares shall be effected in accordance with the procedures established by the
Company and the brokerage firm; however, there shall be no guarantee with respect to the
date or timing of the actual sale of the shares.

                    (iii) Furnish to the Company appropriate documentation that the person or persons
exercising the option (if other than Optionee) have the right to exercise this option.

3

 

               (b) In no event may this option be exercised for any fractional shares.

          9. Compliance with Laws and Regulations.

               (a) The exercise of this option and the issuance of the Option Shares upon such exercise shall
be subject to compliance by the Company and Optionee with all applicable requirements of law
relating thereto and with all applicable regulations of any stock exchange (or the Nasdaq National
Market, if applicable) on which the Common Stock may be listed for trading at the time of such
exercise and 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 and sale of any Common Stock pursuant
to this option shall relieve the Company of any liability with respect to the non-issuance or sale
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.

          10. Successors and Assigns. Except to the extent otherwise provided in Paragraph 3,
the provisions of this Agreement shall inure to the benefit of, and be binding upon, the Company
and its successors and assigns and Optionee, Optionee’s assigns, the legal representatives, heirs
and legatees of Optionee’s estate.

          11. 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 Optionee shall be in writing and
addressed to Optionee at the address indicated below Optionee’s signature line on the Grant Notice.
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.

          12. Construction. This Agreement and the option 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 this option.

          13. 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.

          14. Excess Shares. If the Option Shares covered by this Agreement exceed, as of the
Grant Date, the number of shares of Common Stock which may without stockholder approval be issued
under the Plan, then this option shall be void with respect to those excess shares, unless
stockholder approval of an amendment

4

 

sufficiently increasing the number of shares of Common Stock
issuable under the Plan is obtained in accordance with the provisions of the Plan. In no event
shall the Option be exercisable with respect to any of the excess Option Shares unless and until
such stockholder approval is obtained.

          15. Data Privacy.

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

               (b) Optionee understands that his or her employer, the Company and its Related Corporations,
as applicable, hold certain personal information about him or her regarding Optionee’s employment,
the nature and amount of Optionee’s compensation and the fact and conditions of Optionee’s
participation in the Plan, including, but not limited to, his or her name, home address and
telephone number, date of birth, social insurance number or other identification number, salary,
nationality, job title, any equity or directorships held in the Company and its Related
Corporations, details of all options or any other entitlement to equity awarded, canceled,
exercised, vested, unvested or outstanding in his or her favor, for the purpose of implementing,
administering and managing the Plan (the “Data”). Optionee 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 his or her country, or elsewhere, and that the
recipient’s country may have different data privacy laws and protections than his or her country.
Optionee understands that he or she may request a list with the names and addresses of any
potential recipients of the Data by contacting Optionee’s local human resources representative.
Optionee 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 his or her
participation in the Plan, including any requisite transfer of such Data as may be required to a
broker or other third party. Optionee understands that the Data will be held only as long as is
necessary to implement, administer and manage his or her participation in the Plan. Optionee
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 his or her local
human resources representative. Optionee understands, however, that refusing or withdrawing
Optionee’s consent may affect his or her ability to participate in the Plan. For more information
on the consequences of Optionee’s refusal
to consent or withdrawal of consent, Optionee understands that he or she may contact his or
her local human resources representative.

5

 

          16. No Entitlement Or Claims For Compensation. In accepting the grant of this option,
Optionee acknowledges the following:

               (a) The Plan is established voluntarily by the Company, the grant of options under the Plan is
made at the discretion of the Committee and the Plan may be modified, amended, suspended or
terminated by the Company at any time.

               (b) The grant of this option is voluntary and occasional and does not create any contractual
or other right to receive future grants of options, or benefits in lieu of options, even if options
have been granted repeatedly in the past.

               (c) All decisions with respect to future option grants, if any, will be at the sole discretion
of the Committee.

               (d) Optionee is voluntarily participating in the Plan.

               (e) This option is an extraordinary item that does not constitute compensation of any kind for
services of any kind rendered to the Company or any Related Corporation (including, as applicable,
Optionee’s employer) and which is outside the scope of Optionee’s employment contract, if any.

               (f) This option is not to be considered part of Optionee’s normal or expected compensation or
salary for any purpose, including, but not limited to, calculating any severance, resignation,
termination, payment in lieu of notice, redundancy, end of service payments, bonuses, long-service
awards, pension or retirement benefits or similar payments.

               (g) In the event that Optionee’s employer is not the Company, the grant of this option will
not be interpreted to form an employment contract or relationship with the Company and,
furthermore, the grant of this option will not be interpreted to form an employment contract with
Optionee’s employer or any Related Corporation.

               (h) The future value of the underlying Option Shares is unknown and cannot be predicted with
certainty.

               (i) Optionee shall have no rights, claim or entitlement to compensation or damages as a result
of Optionee’s cessation of employment for any reason whatsoever, whether or not in breach of
contract or local labor law, insofar as these rights, claim or entitlement arise or may arise from
Optionee’s ceasing to have rights under or be entitled to exercise this option as a result of such
cessation or loss or diminution in value of the option or any of the Option Shares purchased
through exercise of the option as a result of such cessation, and Optionee irrevocably releases
his or her employer, the Company and its Related Corporations, as applicable, from any such
rights, entitlement or claim that may arise. If, notwithstanding the foregoing, any such right or
claim is found by a court of competent jurisdiction to have arisen, then, by

6

 

signing this
Agreement, Optionee shall be deemed to have irrevocably waived his or her entitlement to pursue
such rights or claim.

          17. Electronic Delivery. The Company may deliver any documents related to the option,
the Plan or future options that may be granted under the Plan by electronic means. Such means of
electronic delivery include, but do not necessarily include, the delivery of a link to a Company
intranet or the internet site of a third party involved in administering the Plan, the delivery of
the documents via e-mail or such other means of electronic delivery specified by the Company.
Optionee hereby acknowledges that Optionee has read this provision and consents to the electronic
delivery of the documents. Optionee acknowledges that Optionee may receive from the Company a
paper copy of any documents delivered electronically at no cost to Optionee by contacting the
Company in writing or by telephone. Optionee further acknowledges that Optionee will be provided
with a paper copy of any documents if the attempted electronic delivery of such documents fails.
Similarly, Optionee understands that Optionee must provide the Company with a paper copy of any
documents if the attempted electronic delivery of such documents fails.

7

 

APPENDIX

          The following definitions shall be in effect under the Agreement:

          A. Agreement shall mean this Stock Option Agreement.

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

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

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

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

          F. Company shall mean Pharmanet Development Group, Inc., a Delaware Company, 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.

          G. Exercise Date shall mean the date on which the option shall have been exercised in
accordance with Paragraph 9 of the Agreement.

          H. Exercise Price shall mean the exercise price per Option Share as specified in the
Grant Notice.

          I. Exercise Schedule shall mean the schedule set forth in the Grant Notice pursuant to
which the option is to become exercisable for the Option Shares in one or more installments over
the Optionee’s period of Service.

          J. Expiration Date shall mean the date on which the option expires as specified in the
Grant Notice.

          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”;

A-1

 

               (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. Grant Date shall mean the date of grant of the option as specified in the Grant
Notice.

          M. Grant Notice shall mean the Notice of Grant of Stock Option accompanying the
Agreement, pursuant to which Optionee has been informed of the basic terms of the option evidenced
hereby.

          N. Misconduct shall mean the commission of any act of fraud, embezzlement or
dishonesty by Optionee, any unauthorized use or disclosure by Optionee of confidential information
or trade secrets of the Company (or any Related Corporation), or any other intentional misconduct
by Optionee adversely affecting the business or affairs of the Company (or any Related Corporation)
in a material manner. The foregoing definition shall not in any way preclude or restrict the right
of the Company (or any Related Corporation) to discharge or dismiss Optionee or any other person in
the service of the Company (or any Related Corporation) for any other acts or omissions, but such
other acts or omissions shall not be deemed, for purposes of the Plan or this Agreement, to
constitute grounds for termination for Misconduct.

          O. Non-Statutory Option shall mean an option not intended to satisfy the requirements
of Code Section 422.

          P. Notice of Exercise shall mean the notice of option exercise in the form prescribed
by the Company.

          Q. Option Shares shall mean the number of shares of Common Stock subject to the option
as specified in the Grant Notice.

          R. Optionee shall mean the person to whom the option is granted as specified in the
Grant Notice.

          S. Permanent Disability shall mean the inability of Optionee to engage in any
substantial gainful activity by reason of any medically determinable physical or mental impairment
which is expected to result in death or to be of continuous duration of twelve (12) months or more.

          T. Plan shall mean the Company’s Amended and Restated 1999 Stock Plan.

A-2

 

          U. 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.

          V. Withholding Taxes shall mean the income tax, employment tax, social insurance,
payroll tax, contributions, payment on account obligations or other amounts required to be withheld
in connection with the exercise of the option.

A-3

 

International

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).

B. *** (the “Participant”) is to render valuable services to the Company (or a Related Corporation)
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:

	 	August 3, 2007
	 
	 	 
	Number of Shares Subject
to Award:

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

	 	The Participant shall vest with respect to the
Shares in a series of five (5) equal,
successive, annual installments upon the
Participant’s completion of each year of
employment over the five (5)-year period
measured from the Award 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

 

 

	 	 	 
	 

	 	“Issuance
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 Issuance Date
occurs or (if later) the fifteenth (15th) day
of the third calendar month following such
Issuance 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 Employment. Except as otherwise provided for in Participant’s
employment agreement, should the Participant cease employment 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. For purposes of this Agreement, the Participant’s period of employment
shall not include any period of notice of termination of employment, whether expressed or implied.
The Participant’s date of termination shall mean the date upon which he or she ceases active
employment following the provision of notification of termination or resignation from employment
and shall be determined solely by this Agreement and without reference to any other agreement,
written or oral, including the Participant’s contract of employment.

          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 Issuance 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

2

 

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 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.

               (d) Notwithstanding anything to the contrary contained herein, the vesting of Participant’s
restricted stock units under the Award shall be subject to acceleration as provided for in
Participant’s employment agreement.

          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

3

 

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.

               (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

4

 

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. In
addition to the foregoing, the terms of this Restricted Stock Issuance Agreement are subject to the
Participant’s employment agreement with the Company, dated June 30, 2006, and if any of the terms
of this Agreement conflict with the Participant’s employment agreement, the employment agreement
shall control.

          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. Employment at Will. Except as may otherwise be set forth in the Participant’s
employment agreement, nothing in this Agreement or in the Plan shall confer upon the Participant
any right to continue in service for any period of specific duration or interfere with or otherwise
restrict in any way the rights of the Company (or any Related Corporation employing or retaining
the Participant) or of the Participant, which rights are hereby expressly reserved by each, to
terminate the Participant’s service at any time for any reason, with or without cause, and with or
without notice, subject to compliance with local all applicable laws and the provisions of the
Participant’s employment agreement (if any) with the Company or any Related Corporation.

          13. Nature of Grant; No Entitlement; No Claim for Compensation. In accepting the
grant of this Award for the number of Shares as specified above, the Participant acknowledges the
following:

               (a) The Plan is established voluntarily by the Company, it is discretionary in nature and may
be modified, amended, suspended or terminated by the Company at any time.

               (b) The grant of this Award is voluntary and occasional and does not create any contractual or
other right to receive future grants of awards, or benefits in lieu of awards, even if awards have
been granted repeatedly in the past.

               (c) All decisions with respect to future awards, if any, will be at the sole discretion of the
Committee.

               (d) The Participant is voluntarily participating in the Plan.

5

 

               (e) This Award is an extraordinary item that does not constitute compensation of any kind for
services of any kind rendered to the Company or its Related Corporations (including, as applicable,
the Participant’s employer) and which is outside the scope of the Participant’s employment
contract, if any.

               (f) This Award is not part of the Participant’s normal or expected compensation or salary for
any purpose, including, but not limited to, calculating any severance, resignation, termination,
redundancy, end of service payments, bonuses, long-service awards, pension or retirement benefits
or similar payments.

               (g) In the event that the Participant’s employer is not the Company, the grant of the Award
will not be interpreted to form an employment contract or relationship with the Company and,
furthermore, the grant of the Award will not be interpreted to form an employment contract with the
Participant’s employer or any Related Corporations.

               (h) The future value of the underlying Shares is unknown and cannot be predicted with
certainty.

               (i) In consideration of the grant of this Award, no claim or entitlement to compensation or
damages shall arise from termination of the Award or diminution in value of the Award or any of the
Shares issuable under the Award from termination of the Participant’s employment by the Company or
the Participant’s employer, as applicable (and for any reason whatsoever and whether or not in
breach of contract or local labor laws), and the Participant irrevocably releases the Participant’s
employer, the Company and its Related Corporations, as applicable, from any such claim that may
arise; if, notwithstanding the foregoing, any such claim is found by a court of competent
jurisdiction to have arisen, then, by signing this Agreement, the Participant shall be deemed to
have irrevocably waived his or her entitlement to pursue such claim.

          14. 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, the Company and its Related
Corporations for the exclusive purpose of implementing, administering and managing the
Participant’s participation in the Plan.

               (b) The Participant understands that his or her employer, the Company and its Related
Corporations, as applicable, hold certain personal information about the Participant regarding his
or her employment, 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

6

 

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 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.

          15. Electronic Delivery. The Company may deliver any documents related to the Award,
the Plan or future awards that may be granted under the Plan by electronic means. Such means of
electronic delivery include, but do not necessarily include, the delivery of a link to a Company
intranet or the internet site of a third party involved in administering the Plan, the delivery of
the documents via e-mail or such other means of electronic delivery specified by the Company.
Participant hereby acknowledges that Participant has read this provision and consents to the
electronic delivery of the documents. Participant acknowledges that Participant may receive from
the Company a paper copy of any documents delivered electronically at no cost to Participant by
contacting the Company by telephone or in writing. Participant further acknowledges that
Participant will be provided with a paper copy of any documents if the attempted electronic
delivery of such documents fails. Similarly, Participant understands that Participant must provide the Company with a paper copy of any documents if
the attempted electronic delivery of such documents fails.

7

 

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

	 	 	 	 	 
	 	PHARMANET DEVELOPMENT GROUP, INC.

 	 
	 	Signature:	
 	 
	 	 	Name: John Hamill 	 
	 	 	Title:    Executive Vice President & CFO	 
	 	

 	 
	 	PARTICIPANT

 	 
	 	Signature:	
 	 
	 	 	Name:  	                    	 
	 	 	Address:  	 	 
	 	 		 	 
	 

8

 

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.

          P. Withholding Taxes shall mean the income tax, employment tax, social insurance,
payroll tax, contributions, payment on account obligations or other

A-2

 

amounts required to be withheld by the Company in connection with the issuance of the shares
of Common Stock under the Award.

A-3

 

International Performance

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).

B. *** (the “Participant”) is to render valuable services to the Company (or a Related Corporation)
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:

	 	August 3, 2007
	 
	 	 
	Number
of Shares Subject
to Award:

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

	 	The Participant shall vest with respect to the
Shares on the date in 2010 that the Company
files its annual report on a Form 10-K with
the Securities and Exchange Commission
provided (1) the cumulative operating profit
(excluding non-recurring items) for the
preceding 3 fiscal year period (2007, 2008 and
2009) as reported on such Form 10-K’s is at
least $101 million and (2) the Participant
remains employed through each such filing
date. The Shares may vest on an accelerated
basis prior to this vesting date 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 “Issuance
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 Issuance Date
occurs or (if later) the fifteenth (15th) day
of the third calendar month following such
Issuance 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 Employment. Except as otherwise provided for in Participant’s
employment agreement, should the Participant cease employment 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. For purposes of this Agreement, the Participant’s period of employment
shall not include any period of notice of termination of employment, whether expressed or implied.
The Participant’s date of termination shall mean the date upon which he or she ceases active
employment following the provision of notification of termination or resignation from employment
and shall be determined solely by this Agreement and without reference to any other agreement,
written or oral, including the Participant’s contract of employment.

          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 Issuance 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.

2

 

               (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 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.

               (d) Notwithstanding anything to the contrary contained herein, the vesting of Participant’s
restricted stock units under the Award shall be subject to acceleration as provided for in
Participant’s employment agreement.

          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.

3

 

               (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.

               (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.

4

 

          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. In
addition to the foregoing, the terms of this Restricted Stock Issuance Agreement are subject to the
Participant’s employment agreement with the Company, dated June 30, 2006, and if any of the terms
of this Agreement conflict with the Participant’s employment agreement, the employment agreement
shall control.

          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. Employment at Will. Except as may otherwise be set forth in the Participant’s
employment agreement, nothing in this Agreement or in the Plan shall confer upon the Participant
any right to continue in service for any period of specific duration or interfere with or otherwise
restrict in any way the rights of the Company (or any Related Corporation employing or retaining
the Participant) or of the Participant, which rights are hereby expressly reserved by each, to
terminate the Participant’s service at any time for any reason, with or without cause, and with or
without notice, subject to compliance with local all applicable laws and the provisions of the
Participant’s employment agreement (if any) with the Company or any Related Corporation.

          13. Nature of Grant; No Entitlement; No Claim for Compensation. In accepting the
grant of this Award for the number of Shares as specified above, the Participant acknowledges the
following:

               (a) The Plan is established voluntarily by the Company, it is discretionary in nature and may
be modified, amended, suspended or terminated by the Company at any time.

               (b) The grant of this Award is voluntary and occasional and does not create any contractual or
other right to receive future grants of awards, or benefits in lieu of awards, even if awards have
been granted repeatedly in the past.

5

 

               (c) All decisions with respect to future awards, if any, will be at the sole discretion of the
Committee.

               (d) The Participant is voluntarily participating in the Plan.

               (e) This Award is an extraordinary item that does not constitute compensation of any kind for
services of any kind rendered to the Company or its Related Corporations (including, as applicable,
the Participant’s employer) and which is outside the scope of the Participant’s employment
contract, if any.

               (f) This Award is not part of the Participant’s normal or expected compensation or salary for
any purpose, including, but not limited to, calculating any severance, resignation, termination,
redundancy, end of service payments, bonuses, long-service awards, pension or retirement benefits
or similar payments.

               (g) In the event that the Participant’s employer is not the Company, the grant of the Award
will not be interpreted to form an employment contract or relationship with the Company and,
furthermore, the grant of the Award will not be interpreted to form an employment contract with the
Participant’s employer or any Related Corporations.

               (h) The future value of the underlying Shares is unknown and cannot be predicted with
certainty.

               (i) In consideration of the grant of this Award, no claim or entitlement to compensation or
damages shall arise from termination of the Award or diminution in value of the Award or any of the
Shares issuable under the Award from termination of the Participant’s employment by the Company or
the Participant’s employer, as applicable (and for any reason whatsoever and whether or not in
breach of contract or local labor laws), and the Participant irrevocably releases the Participant’s
employer, the Company and its Related Corporations, as applicable, from any such claim that may
arise; if, notwithstanding the foregoing, any such claim is found by a court of competent
jurisdiction to have arisen, then, by signing this Agreement, the Participant shall be deemed to
have irrevocably waived his or her entitlement to pursue such claim.

          14. 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, the Company and its Related
Corporations for the exclusive purpose of implementing, administering and managing the Participant’s participation
in the Plan.

6

 

               (b) The Participant understands that his or her employer, the Company and its Related
Corporations, as applicable, hold certain personal information about the Participant regarding his
or her employment, 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 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.

          15. Electronic Delivery. The Company may deliver any documents related to the Award,
the Plan or future awards that may be granted under the Plan by electronic means. Such means of
electronic delivery include, but do not necessarily include, the delivery of a link to a Company
intranet or the internet site of a third party involved in administering the Plan, the delivery of
the documents via e-mail or such other means of electronic delivery specified by the Company.
Participant hereby acknowledges that Participant has read this provision and consents to the
electronic delivery of the documents. Participant acknowledges that Participant may receive from
the Company a paper copy of any documents delivered electronically at no cost to Participant by
contacting the Company by telephone or in writing. Participant further acknowledges that
Participant will be provided with a paper copy of any documents if
the attempted electronic delivery of such documents fails. Similarly, Participant understands
that Participant must provide the Company with a paper copy of any documents if the attempted
electronic delivery of such documents fails.

7

 

          16. Confidentiality. The Participant agrees at all times during the vesting period
applicable to this Award and thereafter (including following termination of the Participant’s
employment) to hold in strictest confidence and not to use, or to disclose to any person, firm or
corporation, without the prior written consent of the Board, the performance criteria which are the
basis of the vesting of this Award.

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

	 	 	 	 	 
	 	PHARMANET DEVELOPMENT GROUP, INC.

 	 
	 	Signature:	
 	 
	 	 	Name: John Hamill 	 
	 	 	Title:    Executive Vice President & CFO	 
	 	

 	 
	 	PARTICIPANT

 	 
	 	Signature:	
 	 
	 	 	Name:  	                    	 
	 	 	Address:  	 	 
	 	 		 	 
	 

8

 

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.

          P. Withholding Taxes shall mean the income tax, employment tax, social insurance,
payroll tax, contributions, payment on account obligations or other

A-2

 

amounts required to be withheld by the Company in connection with the issuance of the shares of Common Stock under the Award.

A-3

 

International

PHARMANET DEVELOPMENT GROUP, INC.

STOCK OPTION AGREEMENT

RECITALS

     A. The Board has adopted the Plan for the purpose of retaining the services of selected
employees who provide services to the Company (or any Related Corporation).

     B. Optionee is to render valuable services to the Company (or a Related Corporation), and the
Committee has approved the grant of an option to Optionee pursuant to this Agreement.

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

          NOW, THEREFORE, it is hereby agreed as follows:

          1. Grant of Option. The Company hereby grants to Optionee, as of the Grant Date, an
option to purchase up to the number of Option Shares specified in the Grant Notice. The Option
Shares shall be purchasable from time to time during the option term specified in Paragraph 2 at
the Exercise Price.

          2. Option Term. This option shall have a maximum term of seven (7) years measured
from the Grant Date and shall accordingly expire at the close of business on the Expiration Date,
unless sooner terminated in accordance with Paragraph 5 of this Agreement or the provisions of the
Plan.

          3. Limited Transferability. This option shall be neither transferable nor assignable
by Optionee other than by will or the laws of inheritance following Optionee’s death and may be
exercised, during Optionee’s lifetime, only by Optionee.

          4. Dates of Exercise. This option shall become exercisable for the Option Shares in
one or more installments in accordance with the Exercise Schedule set forth in the Grant Notice.
As the option becomes exercisable for such installments, those installments shall accumulate, and
the option shall remain exercisable for the accumulated installments until the Expiration Date or
sooner termination of the option term under Paragraph 5 or 6.

          5. Termination of Employment. The option term specified in Paragraph 2 shall
terminate (and this option shall cease to be outstanding) prior to the Expiration Date should any
of the following provisions become applicable:

               (a) Should Optionee cease to remain in employment with the Company (or any Related
Corporation) for any reason (other than death, Permanent

 

 

Disability or Misconduct) while this option is outstanding, then Optionee shall have a three
(3)-month period measured from the date of such cessation of employment during which to exercise
this option, but in no event shall this option be exercisable at any time after the Expiration
Date.

               (b) Should Optionee die while this option is outstanding, then this option may be exercised by
(i) the personal representative of Optionee’s estate or (ii) the person or persons to whom the
option is transferred pursuant to Optionee’s will or the laws of inheritance following Optionee’s
death. Any such right to exercise this option shall lapse, and this option shall cease to be
outstanding, upon the earlier of (i) the expiration of the twelve (12)-month period measured from
the date of Optionee’s death or (ii) the Expiration Date.

               (c) Should Optionee cease to remain in employment by reason of Permanent Disability while this
option is outstanding, then Optionee shall have a twelve (12)-month period measured from the date
of such cessation of Service during which to exercise this option. In no event shall this option
be exercisable at any time after the Expiration Date.

               (d) During the limited period of post-employment exercisability, this option may not be
exercised in the aggregate for more than the number of Option Shares for which this option is, at
the time of Optionee’s termination of employment, exercisable pursuant to the Exercise Schedule
specified in the Grant Notice or the provisions of the Plan. This option shall not become
exercisable for any additional Option Shares, whether pursuant to the normal Exercise Schedule
specified in the Grant Notice or the provisions of the Plan, following Optionee’s termination of
employment, except to the extent (if any) specifically authorized by the Committee pursuant to an
express written agreement with Optionee. Upon the expiration of such limited exercise period or
(if earlier) upon the Expiration Date, this option shall terminate and cease to be outstanding for
any exercisable Option Shares for which the option has not otherwise been exercised.

               (e) Should Optionee’s employment with the Company (or any Related Corporation) be terminated
for Misconduct or should Optionee otherwise engage in any Misconduct while this option is
outstanding, then this option shall terminate immediately and cease to remain outstanding.

               (f) For purposes of this Agreement, Optionee’s period of employment shall not include any
period of notice of termination of employment, whether expressed or implied. Optionee’s date of
cessation of employment shall mean the date upon which Optionee ceases active performance of
services for the Company (or any Related Corporation) following the provision of such notification
of termination or resignation from employment and shall be determined solely by the Company under
this Agreement without reference to any other agreement, written or oral, including Optionee’s
contract of employment.

2

 

          6. Change in Control. In the event of a change in control, the provisions of
Paragraph 14 of the Plan shall apply.

          7. Adjustment in Option 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), then
equitable adjustments shall be made to (i) the total number and/or class of securities subject to
this option and (ii) the Exercise Price in such manner as the Committee deems appropriate.

          8. Stockholder Rights. The holder of this option shall not have any stockholder
rights with respect to the Option Shares until such person shall have exercised the option, paid
the Exercise Price and become a holder of record of the purchased shares.

          9. Manner of Exercising Option.

               (a) In order to exercise this option with respect to all or any part of the Option Shares for
which this option is at the time exercisable, Optionee (or any other person or persons exercising
the option) must take the following actions:

               (i) Execute and deliver to the Company a Notice of Exercise for the Option Shares for
which the option is exercised or comply with such other procedures as the Company may
establish for notifying the Company of the exercise of this option for one or more Option
Shares.

               (ii) Pay the aggregate Exercise Price for the purchased shares in one or more of the
following forms:

               (A) cash or check made payable to the Company; or

               (B) through a special sale and remittance procedure pursuant to which Optionee
(or any other person or persons exercising the option) shall concurrently provide
irrevocable instructions (i) to a brokerage firm (reasonably satisfactory to the
Company for purposes of administering such procedure in accordance with the
Company’s pre-clearance/pre-notification policies) to effect the immediate sale of
the purchased shares and remit to the Company, out of the sale proceeds available on
the settlement date, sufficient funds to cover the aggregate Exercise Price payable
for the purchased shares plus all applicable Withholding Taxes and (ii) to the
Company to deliver the certificates for

3

 

the purchased shares directly to such brokerage firm on such settlement date in
order to complete the sale.

     Except to the extent the sale and remittance procedure is utilized in
connection with the option exercise, payment of the Exercise Price must accompany
the Notice of Exercise (or other notification procedure) delivered to the Company in
connection with the option exercise.

               (iii) Furnish to the Company appropriate documentation that the person or persons
exercising the option (if other than Optionee) have the right to exercise this option.

               (iv) Make appropriate arrangements with the Company (or Related Corporation employing
Optionee) for the satisfaction of all Withholding Taxes applicable to the option exercise.

               (b) As soon as practical after the Exercise Date, the Company shall issue to or on behalf of
Optionee (or any other person or persons exercising this option) a certificate for the purchased
Option Shares, with the appropriate legends affixed thereto.

               (c) In no event may this option be exercised for any fractional shares.

          10. Compliance with Laws and Regulations.

               (a) The exercise of this option and the issuance of the Option Shares upon such exercise shall
be subject to compliance by the Company and Optionee with all applicable requirements of law
relating thereto and with all applicable regulations of any stock exchange (or the Nasdaq National
Market, if applicable) on which the Common Stock may be listed for trading at the time of such
exercise and 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 and sale of any Common Stock pursuant
to this option shall relieve the Company of any liability with respect to the non-issuance or sale
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.

          11. Successors and Assigns. Except to the extent otherwise provided in Paragraph 3,
the provisions of this Agreement shall inure to the benefit of, and be binding upon, the Company
and its successors and assigns and Optionee, Optionee’s assigns, the legal representatives, heirs
and legatees of Optionee’s estate.

4

 

          12. 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 Optionee shall be in writing and
addressed to Optionee at the address indicated below Optionee’s signature line on the Grant Notice.
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.

          13. Construction. This Agreement and the option 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 this option.

          14. 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.

          15. Excess Shares. If the Option Shares covered by this Agreement exceed, as of the
Grant Date, the number of shares of Common Stock which may without stockholder approval be issued
under the Plan, then this option shall be void with respect to those excess shares, unless
stockholder approval of an amendment sufficiently increasing the number of shares of Common Stock
issuable under the Plan is obtained in accordance with the provisions of the Plan. In no event
shall the Option be exercisable with respect to any of the excess Option Shares unless and until
such stockholder approval is obtained.

          16 Additional Terms Applicable to an Incentive Option. In the event this option is
designated an Incentive Option in the Grant Notice, the following terms and conditions shall also
apply to the grant:

               (a) This option shall cease to qualify for favorable tax treatment as an Incentive Option if
(and to the extent) this option is exercised for one or more Option Shares: (A) more than three (3)
months after the date Optionee ceases to be an employee for any reason other than death or
Permanent Disability or (B) more than twelve (12) months after the date Optionee ceases to be an
employee by reason of Permanent Disability.

               (b) No installment under this option shall qualify for favorable tax treatment as an Incentive
Option if (and to the extent) the aggregate Fair Market Value (determined at the Grant Date) of the
Common Stock for which such installment first becomes exercisable hereunder would, when added to
the aggregate value (determined as of the respective date or dates of grant) of the Common Stock or
other securities for which this option or any other Incentive Options granted to Optionee prior to
the Grant Date (whether under the Plan or any other option plan of the Company or any parent or
Related Corporation) first become exercisable during the same calendar year, exceed

5

 

One Hundred Thousand Dollars ($100,000) in the aggregate. Should such One Hundred Thousand
Dollar ($100,000) limitation be exceeded in any calendar year, this option shall nevertheless
become exercisable for the excess shares in such calendar year as a Non-Statutory Option.

               (c) Should Optionee hold, in addition to this option, one or more other options to purchase
Common Stock which become exercisable for the first time in the same calendar year as this option,
then for purposes of the foregoing limitations on the exercisability of such options as Incentive
Options, this option and each of those other options shall be deemed to become first exercisable in
that calendar year, on the basis of the chronological order in which such options were granted,
except to the extent otherwise provided under applicable law or regulation.

          17. Data Privacy.

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

               (b) Optionee understands that his or her employer, the Company and its Related Corporations,
as applicable, hold certain personal information about him or her regarding Optionee’s employment,
the nature and amount of Optionee’s compensation and the fact and conditions of Optionee’s
participation in the Plan, including, but not limited to, his or her name, home address and
telephone number, date of birth, social insurance number or other identification number, salary,
nationality, job title, any equity or directorships held in the Company and its Related
Corporations, details of all options or any other entitlement to equity awarded, canceled,
exercised, vested, unvested or outstanding in his or her favor, for the purpose of implementing,
administering and managing the Plan (the “Data”). Optionee 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 his or her country, or elsewhere, and that the
recipient’s country may have different data privacy laws and protections than his or her country.
Optionee understands that he or she may request a list with the names and addresses of any
potential recipients of the Data by contacting Optionee’s local human resources representative.
Optionee 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 his or her
participation in the Plan, including any requisite transfer of such Data as may be required to a
broker or other third party. Optionee understands that the Data will be held only as long as is
necessary to implement, administer and manage his or her participation in the Plan. Optionee
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

6

 

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

          18. No Entitlement Or Claims For Compensation. In accepting the grant of this option,
Optionee acknowledges the following:

               (a) The Plan is established voluntarily by the Company, the grant of options under the Plan is
made at the discretion of the Committee and the Plan may be modified, amended, suspended or
terminated by the Company at any time.

               (b) The grant of this option is voluntary and occasional and does not create any contractual
or other right to receive future grants of options, or benefits in lieu of options, even if options
have been granted repeatedly in the past.

               (c) All decisions with respect to future option grants, if any, will be at the sole discretion
of the Committee.

               (d) Optionee is voluntarily participating in the Plan.

               (e) This option is an extraordinary item that does not constitute compensation of any kind for
services of any kind rendered to the Company or any Related Corporation (including, as applicable,
Optionee’s employer) and which is outside the scope of Optionee’s employment contract, if any.

               (f) This option is not to be considered part of Optionee’s normal or expected compensation or
salary for any purpose, including, but not limited to, calculating any severance, resignation,
termination, payment in lieu of notice, redundancy, end of service payments, bonuses, long-service
awards, pension or retirement benefits or similar payments.

               (g) In the event that Optionee’s employer is not the Company, the grant of this option will
not be interpreted to form an employment contract or relationship with the Company and,
furthermore, the grant of this option will not be interpreted to form an employment contract with
Optionee’s employer or any Related Corporation.

               (h) The future value of the underlying Option Shares is unknown and cannot be predicted with
certainty.

               (i) Optionee shall have no rights, claim or entitlement to compensation or damages as a result
of Optionee’s cessation of employment for any reason whatsoever, whether or not in breach of
contract or local labor law, insofar as these rights, claim or entitlement arise or may arise from
Optionee’s ceasing to have

7

 

rights under or be entitled to exercise this option as a result of such cessation or loss or
diminution in value of the option or any of the Option Shares purchased through exercise of the
option as a result of such cessation, and Optionee irrevocably releases his or her employer, the
Company and its Related Corporations, as applicable, from any such rights, entitlement or claim
that may arise. If, notwithstanding the foregoing, any such right or claim is found by a court of
competent jurisdiction to have arisen, then, by signing this Agreement, Optionee shall be deemed to
have irrevocably waived his or her entitlement to pursue such rights or claim.

          22. Electronic Delivery. The Company may deliver any documents related to the option,
the Plan or future options that may be granted under the Plan by electronic means. Such means of
electronic delivery include, but do not necessarily include, the delivery of a link to a Company
intranet or the internet site of a third party involved in administering the Plan, the delivery of
the documents via e-mail or such other means of electronic delivery specified by the Company.
Optionee hereby acknowledges that Optionee has read this provision and consents to the electronic
delivery of the documents. Optionee acknowledges that Optionee may receive from the Company a
paper copy of any documents delivered electronically at no cost to Optionee by contacting the
Company in writing or by telephone. Optionee further acknowledges that Optionee will be provided
with a paper copy of any documents if the attempted electronic delivery of such documents fails.
Similarly, Optionee understands that Optionee must provide the Company with a paper copy of any
documents if the attempted electronic delivery of such documents fails.

8

 

APPENDIX

          The following definitions shall be in effect under the Agreement:

          A. Agreement shall mean this Stock Option Agreement.

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

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

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

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

          F. Company shall mean Pharmanet Development Group, Inc., a Delaware Company, 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.

          G. Exercise Date shall mean the date on which the option shall have been exercised in
accordance with Paragraph 9 of the Agreement.

          H. Exercise Price shall mean the exercise price per Option Share as specified in the
Grant Notice.

          I. Exercise Schedule shall mean the schedule set forth in the Grant Notice pursuant to
which the option is to become exercisable for the Option Shares in one or more installments over
the Optionee’s period of Service.

          J. Expiration Date shall mean the date on which the option expires as specified in the
Grant Notice.

          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”;

A-1

 

          (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. Grant Date shall mean the date of grant of the option as specified in the Grant
Notice.

          M. Grant Notice shall mean the Notice of Grant of Stock Option accompanying the
Agreement, pursuant to which Optionee has been informed of the basic terms of the option evidenced
hereby.

          N. Incentive Option shall mean an option which satisfies the requirements of Code
Section 422.

          O. Misconduct shall mean the commission of any act of fraud, embezzlement or
dishonesty by Optionee, any unauthorized use or disclosure by Optionee of confidential information
or trade secrets of the Company (or any Related Corporation), or any other intentional misconduct
by Optionee adversely affecting the business or affairs of the Company (or any Related Corporation)
in a material manner. The foregoing definition shall not in any way preclude or restrict the right
of the Company (or any Related Corporation) to discharge or dismiss Optionee or any other person in
the service of the Company (or any Related Corporation) for any other acts or omissions, but such
other acts or omissions shall not be deemed, for purposes of the Plan or this Agreement, to
constitute grounds for termination for Misconduct.

          P. Non-Statutory Option shall mean an option not intended to satisfy the requirements
of Code Section 422.

          Q. Notice of Exercise shall mean the notice of option exercise in the form prescribed
by the Company.

          R. Option Shares shall mean the number of shares of Common Stock subject to the option
as specified in the Grant Notice.

          S. Optionee shall mean the person to whom the option is granted as specified in the
Grant Notice.

          T. Permanent Disability shall mean the inability of Optionee to engage in any
substantial gainful activity by reason of any medically determinable physical or mental impairment
which is expected to result in death or to be of continuous duration of twelve (12) months or more.

A-2

 

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

          V. 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.

          W. Withholding Taxes shall mean the income tax, employment tax, social insurance,
payroll tax, contributions, payment on account obligations or other amounts required to be withheld
in connection with the exercise of the option.

A-3

 

India

PHARMANET DEVELOPMENT GROUP, INC.

STOCK OPTION AGREEMENT

RECITALS

     A. The Board has adopted the Plan for the purpose of retaining the services of selected
employees who provide services to the Company (or any Related Corporation).

     B. Optionee is to render valuable services to the Company (or a Related Corporation), and the
Committee has approved the grant of an option to Optionee pursuant to this Agreement.

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

          NOW, THEREFORE, it is hereby agreed as follows:

          1. Grant of Option. The Company hereby grants to Optionee, as of the Grant Date, an
option to purchase up to the number of Option Shares specified in the Grant Notice. The Option
Shares shall be purchasable from time to time during the option term specified in Paragraph 2 at
the Exercise Price.

          2. Option Term. This option shall have a maximum term of seven (7) years measured
from the Grant Date and shall accordingly expire at the close of business on the Expiration Date,
unless sooner terminated in accordance with Paragraph 5 of this Agreement or the provisions of the
Plan.

          3. Limited Transferability. This option shall be neither transferable nor assignable
by Optionee other than by will or the laws of inheritance following Optionee’s death and may be
exercised, during Optionee’s lifetime, only by Optionee.

          4. Dates of Exercise. This option shall become exercisable for the Option Shares in
one or more installments in accordance with the Exercise Schedule set forth in the Grant Notice.
As the option becomes exercisable for such installments, those installments shall accumulate, and
the option shall remain exercisable for the accumulated installments until the Expiration Date or
sooner termination of the option term under Paragraph 5 or 6.

          5. Termination of Employment. The option term specified in Paragraph 2 shall
terminate (and this option shall cease to be outstanding) prior to the Expiration Date should any
of the following provisions become applicable:

               (a) Should Optionee cease to remain in employment with the Company (or any Related
Corporation) for any reason (other than death, Permanent

 

 

Disability or Misconduct) while this option is outstanding, then Optionee shall have a three
(3)-month period measured from the date of such cessation of employment during which to exercise
this option, but in no event shall this option be exercisable at any time after the Expiration
Date.

               (b) Should Optionee die while this option is outstanding, then this option may be exercised by
(i) the personal representative of Optionee’s estate or (ii) the person or persons to whom the
option is transferred pursuant to Optionee’s will or the laws of inheritance following Optionee’s
death. Any such right to exercise this option shall lapse, and this option shall cease to be
outstanding, upon the earlier of (i) the expiration of the twelve (12)-month period measured from
the date of Optionee’s death or (ii) the Expiration Date.

               (c) Should Optionee cease to remain in employment by reason of Permanent Disability while this
option is outstanding, then Optionee shall have a twelve (12)-month period measured from the date
of such cessation of Service during which to exercise this option. In no event shall this option
be exercisable at any time after the Expiration Date.

               (d) During the limited period of post-employment exercisability, this option may not be
exercised in the aggregate for more than the number of Option Shares for which this option is, at
the time of Optionee’s termination of employment, exercisable pursuant to the Exercise Schedule
specified in the Grant Notice or the provisions of the Plan. This option shall not become
exercisable for any additional Option Shares, whether pursuant to the normal Exercise Schedule
specified in the Grant Notice or the provisions of the Plan, following Optionee’s termination of
employment, except to the extent (if any) specifically authorized by the Committee pursuant to an
express written agreement with Optionee. Upon the expiration of such limited exercise period or
(if earlier) upon the Expiration Date, this option shall terminate and cease to be outstanding for
any exercisable Option Shares for which the option has not otherwise been exercised.

               (e) Should Optionee’s employment with the Company (or any Related Corporation) be terminated
for Misconduct or should Optionee otherwise engage in any Misconduct while this option is
outstanding, then this option shall terminate immediately and cease to remain outstanding.

               (f) For purposes of this Agreement, Optionee’s period of employment shall not include any
period of notice of termination of employment, whether expressed or implied. Optionee’s date of
cessation of employment shall mean the date upon which Optionee ceases active performance of
services for the Company (or any Related Corporation) following the provision of such notification
of termination or resignation from employment and shall be determined solely by the Company under
this Agreement without reference to any other agreement, written or oral, including Optionee’s
contract of employment.

2

 

          6. Change in Control. In the event of a change in control, the provisions of
Paragraph 14 of the Plan shall apply.

          7. Adjustment in Option 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), then
equitable adjustments shall be made to (i) the total number and/or class of securities subject to
this option and (ii) the Exercise Price in such manner as the Committee deems appropriate.

          8. Stockholder Rights. The holder of this option shall not have any stockholder
rights with respect to the Option Shares until such person shall have exercised the option, paid
the Exercise Price and become a holder of record of the purchased shares.

          9. Manner of Exercising Option.

               (a) In order to exercise this option with respect to all or any part of the Option Shares for
which this option is at the time exercisable, Optionee (or any other person or persons exercising
the option) must take the following actions:

               (i) Execute and deliver to the Company a Notice of Exercise for the Option Shares for
which the option is exercised or comply with such other procedures as the Company may
establish for notifying the Company of the exercise of this option for one or more Option
Shares.

               (ii) Pay the aggregate Exercise Price for the purchased shares in one or more of the
following forms:

               (A) cash or check made payable to the Company; or

               (B) through a special sale and remittance procedure pursuant to which Optionee
(or any other person or persons exercising the option) shall concurrently provide
irrevocable instructions (i) to a brokerage firm (reasonably satisfactory to the
Company for purposes of administering such procedure in accordance with the
Company’s pre-clearance/pre-notification policies) to effect the immediate sale of
the purchased shares and remit to the Company, out of the sale proceeds available on
the settlement date, sufficient funds to cover the aggregate Exercise Price payable
for the purchased shares plus all applicable Withholding Taxes and (ii) to the
Company to deliver the certificates for

3

 

the purchased shares directly to such brokerage firm on such settlement date in
order to complete the sale.

     Except to the extent the sale and remittance procedure is utilized in
connection with the option exercise, payment of the Exercise Price must accompany
the Notice of Exercise (or other notification procedure) delivered to the Company in
connection with the option exercise.

               (iii) Furnish to the Company appropriate documentation that the person or persons exercising
the option (if other than Optionee) have the right to exercise this option.

               (iv) Make appropriate arrangements with the Company (or Related Corporation employing
Optionee) for the satisfaction of all applicable Withholding Taxes applicable to the option
exercise and any Employer Taxes payable by Optionee in accordance with Paragraph 10.

        (b) As soon as practical after the Exercise Date, the Company shall issue to or on behalf of
Optionee (or any other person or persons exercising this option) a certificate for the purchased
Option Shares, with the appropriate legends affixed thereto.

          (c) In no event may this option be exercised for any fractional shares.

          10. Employer Taxes. In the event that any taxes (the “Employer Taxes”) imposed by the
Government of India (including any fringe benefits tax) are required to be paid by the Company (or
any Related Corporation) as a result of or with respect to the grant, vesting or exercise of this
option, the Company (or any Related Corporation) shall be entitled, in its discretion, to require
Optionee (or any other person or persons exercising the option) to pay such Employer Taxes and to
withhold the amount of such Employer Taxes in cash or shares of Common Stock, from the amounts
otherwise payable to Optionee (or such other person or persons exercising the option) with respect
to the exercise of this option or otherwise to recover the amount of such taxes from Optionee (or
such other person or persons exercising the option) as a condition to the effectiveness of such
option exercise. In the event the Company (or any Related Corporation) shall be unable to recover,
by withholding or reimbursement, the amount of such Employer Taxes from Optionee (or such other
person or persons exercising the option), for any reason whatsoever, the Company (or any Related
Corporation) may withhold appropriate amounts from any payment (including salary) paid or payable
by the Company (or any Related Corporation) to Optionee.

          11. Compliance with Laws and Regulations.

               (a) The exercise of this option and the issuance of the Option Shares upon such exercise shall
be subject to compliance by the Company and

4

 

Optionee with all applicable requirements of law relating thereto and with all applicable
regulations of any stock exchange (or the Nasdaq National Market, if applicable) on which the
Common Stock may be listed for trading at the time of such exercise and 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 and sale of any Common Stock pursuant
to this option shall relieve the Company of any liability with respect to the non-issuance or sale
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.

          12. Successors and Assigns. Except to the extent otherwise provided in Paragraph 3,
the provisions of this Agreement shall inure to the benefit of, and be binding upon, the Company
and its successors and assigns and Optionee, Optionee’s assigns, the legal representatives, heirs
and legatees of Optionee’s estate.

          13. 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 Optionee shall be in writing and
addressed to Optionee at the address indicated below Optionee’s signature line on the Grant Notice.
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.

          14. Construction. This Agreement and the option 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 this option.

          15. 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.

          16. Excess Shares. If the Option Shares covered by this Agreement exceed, as of the
Grant Date, the number of shares of Common Stock which may without stockholder approval be issued
under the Plan, then this option shall be void with respect to those excess shares, unless
stockholder approval of an amendment sufficiently increasing the number of shares of Common Stock
issuable under the Plan is obtained in accordance with the provisions of the Plan. In no event
shall the Option be exercisable with respect to any of the excess Option Shares unless and until
such stockholder approval is obtained.

5

 

          17. Additional Terms Applicable to an Incentive Option. In the event this option is
designated an Incentive Option in the Grant Notice, the following terms and conditions shall also
apply to the grant:

               (a) This option shall cease to qualify for favorable tax treatment as an Incentive Option if
(and to the extent) this option is exercised for one or more Option Shares: (A) more than three (3)
months after the date Optionee ceases to be an employee for any reason other than death or
Permanent Disability or (B) more than twelve (12) months after the date Optionee ceases to be an
employee by reason of Permanent Disability.

               (b) No installment under this option shall qualify for favorable tax treatment as an Incentive
Option if (and to the extent) the aggregate Fair Market Value (determined at the Grant Date) of the
Common Stock for which such installment first becomes exercisable hereunder would, when added to
the aggregate value (determined as of the respective date or dates of grant) of the Common Stock or
other securities for which this option or any other Incentive Options granted to Optionee prior to
the Grant Date (whether under the Plan or any other option plan of the Company or any parent or
Related Corporation) first become exercisable during the same calendar year, exceed One Hundred
Thousand Dollars ($100,000) in the aggregate. Should such One Hundred Thousand Dollar ($100,000)
limitation be exceeded in any calendar year, this option shall nevertheless become exercisable for
the excess shares in such calendar year as a Non-Statutory Option.

               (c) Should Optionee hold, in addition to this option, one or more other options to purchase
Common Stock which become exercisable for the first time in the same calendar year as this option,
then for purposes of the foregoing limitations on the exercisability of such options as Incentive
Options, this option and each of those other options shall be deemed to become first exercisable in
that calendar year, on the basis of the chronological order in which such options were granted,
except to the extent otherwise provided under applicable law or regulation.

          18. Data Privacy.

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

               (b) Optionee understands that his or her employer, the Company and its Related Corporations,
as applicable, hold certain personal information about him or her regarding Optionee’s employment,
the nature and amount of Optionee’s compensation and the fact and conditions of Optionee’s
participation in the Plan, including, but not limited to, his or her name, home address and
telephone number, date of birth, social insurance number or other identification number, salary,

6

 

nationality, job title, any equity or directorships held in the Company and its Related
Corporations, details of all options or any other entitlement to equity awarded, canceled,
exercised, vested, unvested or outstanding in his or her favor, for the purpose of implementing,
administering and managing the Plan (the “Data”). Optionee 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 his or her country, or elsewhere, and that the
recipient’s country may have different data privacy laws and protections than his or her country.
Optionee understands that he or she may request a list with the names and addresses of any
potential recipients of the Data by contacting Optionee’s local human resources representative.
Optionee 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 his or her
participation in the Plan, including any requisite transfer of such Data as may be required to a
broker or other third party. Optionee understands that the Data will be held only as long as is
necessary to implement, administer and manage his or her participation in the Plan. Optionee
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 his or her local
human resources representative. Optionee understands, however, that refusing or withdrawing
Optionee’s consent may affect his or her ability to participate in the Plan. For more information
on the consequences of Optionee’s refusal to consent or withdrawal of consent, Optionee understands
that he or she may contact his or her local human resources representative.

          19. No Entitlement Or Claims For Compensation. In accepting the grant of this option,
Optionee acknowledges the following:

               (a) The Plan is established voluntarily by the Company, the grant of options under the Plan is
made at the discretion of the Committee and the Plan may be modified, amended, suspended or
terminated by the Company at any time.

               (b) The grant of this option is voluntary and occasional and does not create any contractual
or other right to receive future grants of options, or benefits in lieu of options, even if options
have been granted repeatedly in the past.

               (c) All decisions with respect to future option grants, if any, will be at the sole discretion
of the Committee.

               (d) Optionee is voluntarily participating in the Plan.

               (e) This option is an extraordinary item that does not constitute compensation of any kind for
services of any kind rendered to the Company or any Related Corporation (including, as applicable,
Optionee’s employer) and which is outside the scope of Optionee’s employment contract, if any.

7

 

               (f) This option is not to be considered part of Optionee’s normal or expected compensation or
salary for any purpose, including, but not limited to, calculating any severance, resignation,
termination, payment in lieu of notice, redundancy, end of service payments, bonuses, long-service
awards, pension or retirement benefits or similar payments.

               (g) In the event that Optionee’s employer is not the Company, the grant of this option will
not be interpreted to form an employment contract or relationship with the Company and,
furthermore, the grant of this option will not be interpreted to form an employment contract with
Optionee’s employer or any Related Corporation.

               (h) The future value of the underlying Option Shares is unknown and cannot be predicted with
certainty.

               (i) Optionee shall have no rights, claim or entitlement to compensation or damages as a result
of Optionee’s cessation of employment for any reason whatsoever, whether or not in breach of
contract or local labor law, insofar as these rights, claim or entitlement arise or may arise from
Optionee’s ceasing to have rights under or be entitled to exercise this option as a result of such
cessation or loss or diminution in value of the option or any of the Option Shares purchased
through exercise of the option as a result of such cessation, and Optionee irrevocably releases his
or her employer, the Company and its Related Corporations, as applicable, from any such rights,
entitlement or claim that may arise. If, notwithstanding the foregoing, any such right or claim is
found by a court of competent jurisdiction to have arisen, then, by signing this Agreement,
Optionee shall be deemed to have irrevocably waived his or her entitlement to pursue such rights or
claim.

          20. Electronic Delivery. The Company may deliver any documents related to the option,
the Plan or future options that may be granted under the Plan by electronic means. Such means of
electronic delivery include, but do not necessarily include, the delivery of a link to a Company
intranet or the internet site of a third party involved in administering the Plan, the delivery of
the documents via e-mail or such other means of electronic delivery specified by the Company.
Optionee hereby acknowledges that Optionee has read this provision and consents to the electronic
delivery of the documents. Optionee acknowledges that Optionee may receive from the Company a
paper copy of any documents delivered electronically at no cost to Optionee by contacting the
Company in writing or by telephone. Optionee further acknowledges that Optionee will be provided
with a paper copy of any documents if the attempted electronic delivery of such documents fails.
Similarly, Optionee understands that Optionee must provide the Company with a paper copy of any
documents if the attempted electronic delivery of such documents fails.

8

 

APPENDIX

          The following definitions shall be in effect under the Agreement:

          A. Agreement shall mean this Stock Option Agreement.

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

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

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

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

          F. Company shall mean Pharmanet Development Group, Inc., a Delaware Company, 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.

          G. Exercise Date shall mean the date on which the option shall have been exercised in
accordance with Paragraph 9 of the Agreement.

          H. Exercise Price shall mean the exercise price per Option Share as specified in the
Grant Notice.

          I. Exercise Schedule shall mean the schedule set forth in the Grant Notice pursuant to
which the option is to become exercisable for the Option Shares in one or more installments over
the Optionee’s period of Service.

          J. Expiration Date shall mean the date on which the option expires as specified in the
Grant Notice.

          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”;

A-1

 

          (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. Grant Date shall mean the date of grant of the option as specified in the Grant
Notice.

          M. Grant Notice shall mean the Notice of Grant of Stock Option accompanying the
Agreement, pursuant to which Optionee has been informed of the basic terms of the option evidenced
hereby.

          N. Incentive Option shall mean an option which satisfies the requirements of Code
Section 422.

          O. Misconduct shall mean the commission of any act of fraud, embezzlement or
dishonesty by Optionee, any unauthorized use or disclosure by Optionee of confidential information
or trade secrets of the Company (or any Related Corporation), or any other intentional misconduct
by Optionee adversely affecting the business or affairs of the Company (or any Related Corporation)
in a material manner. The foregoing definition shall not in any way preclude or restrict the right
of the Company (or any Related Corporation) to discharge or dismiss Optionee or any other person in
the service of the Company (or any Related Corporation) for any other acts or omissions, but such
other acts or omissions shall not be deemed, for purposes of the Plan or this Agreement, to
constitute grounds for termination for Misconduct.

          P. Non-Statutory Option shall mean an option not intended to satisfy the requirements
of Code Section 422.

          Q. Notice of Exercise shall mean the notice of option exercise in the form prescribed
by the Company.

          R. Option Shares shall mean the number of shares of Common Stock subject to the option
as specified in the Grant Notice.

          S. Optionee shall mean the person to whom the option is granted as specified in the
Grant Notice.

          T. Permanent Disability shall mean the inability of Optionee to engage in any
substantial gainful activity by reason of any medically determinable physical or mental impairment
which is expected to result in death or to be of continuous duration of twelve (12) months or more.

A-2

 

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

          V. 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.

          W. Withholding Taxes shall mean the income tax, employment tax, social insurance,
payroll tax, contributions, payment on account obligations or other amounts required to be withheld
in connection with the exercise of the option.

A-3

 

India Performance

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).

B. *** (the “Participant”) is to render valuable services to the Company (or a Related Corporation)
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:

	 	August 3, 2007
	 
	 	 
	Number of Shares Subject
to Award:

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

	 	The Participant shall vest with respect to the
Shares on the date in 2010 that the Company
files its annual report on a Form 10-K with
the Securities and Exchange Commission
provided (1) the cumulative operating profit
(excluding non-recurring items) for the
preceding 3 fiscal year period (2007, 2008 and
2009) as reported on such Form 10-K’s is at
least $101 million and (2) the Participant
remains employed through each such filing
date. The Shares may vest on an accelerated
basis prior to this vesting date 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 “Issuance
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 Issuance Date
occurs or (if later) the fifteenth (15th) day
of the third calendar month following such
Issuance Date. The issuance of the Shares
shall be subject to the Company’s collection
of any applicable Withholding Taxes and
Employer 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 Employment. Except as otherwise provided for in Participant’s
employment agreement, should the Participant cease employment 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. For purposes of this Agreement, the Participant’s period of employment
shall not include any period of notice of termination of employment, whether expressed or implied.
The Participant’s date of termination shall mean the date upon which he or she ceases active
employment following the provision of notification of termination or resignation from employment
and shall be determined solely by this Agreement and without reference to any other agreement,
written or oral, including the Participant’s contract of employment.

          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 Issuance 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.

2

 

               (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 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.

               (d) Notwithstanding anything to the contrary contained herein, the vesting of Participant’s
restricted stock units under the Award shall be subject to acceleration as provided for in
Participant’s employment agreement.

          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 and
Employer Taxes.

3

 

               (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.

               (c) In the event that any taxes (the “Employer Taxes”) imposed by the Government of India
(including any fringe benefits tax) are required to be paid by the Company (or any Related
Corporation) as a result of or with respect to the grant or vesting of this Award or the issuance
of Shares hereunder the Company (or such Related Corporation) shall be entitled, in its discretion,
to require the Participant to pay such Employer Taxes and, subject to compliance with local law
including local foreign exchange law, to withhold the amount of such Employer Taxes in cash or
Shares, from the amounts otherwise payable to the Participant with respect to the Award or
otherwise to recover the amount of such taxes from the Participant as a condition to the issuance
of the Shares. In the event the Company (or its Related Corporation) shall be unable to recover,
by withholding or reimbursement, the amount of such Employer Taxes from the Participant, for any
reason whatsoever, the Company (or its Related Corporation) may withhold appropriate amounts from
any payment (including salary) paid or payable the Company (or its Related Corporation) to the
Participant.

               (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 and Employer 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

4

 

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. In
addition to the foregoing, the terms of this Restricted Stock Issuance Agreement are subject to the
Participant’s employment agreement with the Company, dated June 30, 2006, and if any of the terms
of this Agreement conflict with the Participant’s employment agreement, the employment agreement
shall control.

          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. Employment at Will. Except as may otherwise be set forth in the Participant’s
employment agreement, nothing in this Agreement or in the Plan shall confer upon the Participant
any right to continue in service for any period of specific duration or interfere with or otherwise
restrict in any way the rights of the Company (or any Related Corporation employing or retaining
the Participant) or of the Participant, which rights are hereby expressly reserved by each, to
terminate the Participant’s service at any time for any reason, with or without cause, and with or
without notice, subject to compliance with local all applicable laws and the provisions of the
Participant’s employment agreement (if any) with the Company or any Related Corporation.

          13. Nature of Grant; No Entitlement; No Claim for Compensation. In accepting the
grant of this Award for the number of Shares as specified above, the Participant acknowledges the
following:

5

 

               (a) The Plan is established voluntarily by the Company; it is discretionary in nature and may
be modified, amended, suspended or terminated by the Company at any time.

               (b) The grant of this Award is voluntary and occasional and does not create any contractual or
other right to receive future grants of awards, or benefits in lieu of awards, even if awards have
been granted repeatedly in the past.

               (c) All decisions with respect to future awards, if any, will be at the sole discretion of the
Committee.

               (d) The Participant is voluntarily participating in the Plan.

               (e) This Award is an extraordinary item that does not constitute compensation of any kind for
services of any kind rendered to the Company or its Related Corporations (including, as applicable,
the Participant’s employer) and which is outside the scope of the Participant’s employment
contract, if any.

               (f) This Award is not part of the Participant’s normal or expected compensation or salary for
any purpose, including, but not limited to, calculating any severance, resignation, termination,
redundancy, end of service payments, bonuses, long-service awards, pension or retirement benefits
or similar payments.

               (g) In the event that the Participant’s employer is not the Company, the grant of the Award
will not be interpreted to form an employment contract or relationship with the Company and,
furthermore, the grant of the Award will not be interpreted to form an employment contract with the
Participant’s employer or any Related Corporations.

               (h) The future value of the underlying Shares is unknown and cannot be predicted with
certainty.

               (i) In consideration of the grant of this Award, no claim or entitlement to compensation or
damages shall arise from termination of the Award or diminution in value of the Award or any of the
Shares issuable under the Award from termination of the Participant’s employment by the Company or
the Participant’s employer, as applicable (and for any reason whatsoever and whether or not in
breach of contract or local labor laws), and the Participant irrevocably releases the Participant’s
employer, the Company and its Related Corporations, as applicable, from any such claim that may
arise; if, notwithstanding the foregoing, any such claim is found by a court of competent
jurisdiction to have arisen, then, by signing this Agreement, the Participant shall be deemed to
have irrevocably waived his or her entitlement to pursue such claim.

6

 

          14. 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, the Company and its Related
Corporations for the exclusive purpose of implementing, administering and managing the
Participant’s participation in the Plan.

               (b) The Participant understands that his or her employer, the Company and its Related
Corporations, as applicable, hold certain personal information about the Participant regarding his
or her employment, 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 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.

          15. Electronic Delivery. The Company may deliver any documents related to the Award,
the Plan or future awards that may be granted under the Plan by electronic means. Such means of
electronic delivery include, but do not necessarily include, the delivery of a link to a Company
intranet or the internet site of a third party involved in administering the Plan, the delivery of
the documents via e-mail or such

7

 

other means of electronic delivery specified by the Company. Participant hereby acknowledges
that Participant has read this provision and consents to the electronic delivery of the documents.
Participant acknowledges that Participant may receive from the Company a paper copy of any
documents delivered electronically at no cost to Participant by contacting the Company by telephone
or in writing. Participant further acknowledges that Participant will be provided with a paper
copy of any documents if the attempted electronic delivery of such documents fails. Similarly,
Participant understands that Participant must provide the Company with a paper copy of any
documents if the attempted electronic delivery of such documents fails.

          16. Confidentiality. The Participant agrees at all times during the vesting period
applicable to this Award and thereafter (including following termination of the Participant’s
employment) to hold in strictest confidence and not to use, or to disclose to any person, firm or
corporation, without the prior written consent of the Board, the performance criteria which are the
basis of the vesting of this Award.

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

	 	 	 	 	 
	 	PHARMANET DEVELOPMENT GROUP, INC.

 	 
	 	Signature:	
 	 
	 	 	Name: John Hamill 	 
	 	 	Title:    Executive Vice President & CFO	 
	 	

 	 
	 	PARTICIPANT

 	 
	 	Signature:	
 	 
	 	 	Name:  	                    	 
	 	 	Address:  	 	 
	 	 		 	 
	 

8

 

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.

          P. Withholding Taxes shall mean the income tax, employment tax, social insurance,
payroll tax, contributions, payment on account obligations or other

A-2

 

amounts required to be withheld by the Company in connection with the issuance of the shares
of Common Stock under the Award.

A-3

 

India

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).

B. *** (the “Participant”) is to render valuable services to the Company (or a Related Corporation)
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:

	 	August 3, 2007
	 
	 	 
	Number of Shares
Subject to Award:

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

	 	The Participant shall vest with respect to the
Shares in a series of five (5) equal,
successive, annual installments upon the
Participant’s completion of each year of
employment over the five (5)-year period
measured from the Award 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

 

 

	 	 	 
	 

	 	“Issuance
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 Issuance Date
occurs or (if later) the fifteenth (15th) day
of the third calendar month following such
Issuance Date. The issuance of the Shares
shall be subject to the Company’s collection
of any applicable Withholding Taxes and
Employer 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 Employment. Except as otherwise provided for in Participant’s
employment agreement, should the Participant cease employment 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. For purposes of this Agreement, the Participant’s period of employment
shall not include any period of notice of termination of employment, whether expressed or implied.
The Participant’s date of termination shall mean the date upon which he or she ceases active
employment following the provision of notification of termination or resignation from employment
and shall be determined solely by this Agreement and without reference to any other agreement,
written or oral, including the Participant’s contract of employment.

          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 Issuance 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

2

 

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 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.

          (d) Notwithstanding anything to the contrary contained herein, the vesting of Participant’s
restricted stock units under the Award shall be subject to acceleration as provided for in
Participant’s employment agreement.

          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 and
Employer 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

3

 

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.

               (c) In the event that any taxes (the “Employer Taxes”) imposed by the Government of India
(including any fringe benefits tax) are required to be paid by the Company (or any Related
Corporation) as a result of or with respect to the grant or vesting of this Award or the issuance
of Shares hereunder the Company (or such Related Corporation) shall be entitled, in its discretion,
to require the Participant to pay such Employer Taxes and, subject to compliance with local law
including local foreign exchange law, to withhold the amount of such Employer Taxes in cash or
Shares, from the amounts otherwise payable to the Participant with respect to the Award or
otherwise to recover the amount of such taxes from the Participant as a condition to the issuance
of the Shares. In the event the Company (or its Related Corporation) shall be unable to recover,
by withholding or reimbursement, the amount of such Employer Taxes from the Participant, for any
reason whatsoever, the Company (or its Related Corporation) may withhold appropriate amounts from
any payment (including salary) paid or payable the Company (or its Related Corporation) to the
Participant.

               (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 and Employer 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.

4

 

          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. In
addition to the foregoing, the terms of this Restricted Stock Issuance Agreement are subject to the
Participant’s employment agreement with the Company, dated June 30, 2006, and if any of the terms
of this Agreement conflict with the Participant’s employment agreement, the employment agreement
shall control.

          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. Employment at Will. Except as may otherwise be set forth in the Participant’s
employment agreement, nothing in this Agreement or in the Plan shall confer upon the Participant
any right to continue in service for any period of specific duration or interfere with or otherwise
restrict in any way the rights of the Company (or any Related Corporation employing or retaining
the Participant) or of the Participant, which rights are hereby expressly reserved by each, to
terminate the Participant’s service at any time for any reason, with or without cause, and with or
without notice, subject to compliance with local all applicable laws and the provisions of the
Participant’s employment agreement (if any) with the Company or any Related Corporation.

5

 

          13. Nature of Grant; No Entitlement; No Claim for Compensation. In accepting the
grant of this Award for the number of Shares as specified above, the Participant acknowledges the
following:

          (a) The Plan is established voluntarily by the Company; it is discretionary in nature and may
be modified, amended, suspended or terminated by the Company at any time.

          (b) The grant of this Award is voluntary and occasional and does not create any contractual or
other right to receive future grants of awards, or benefits in lieu of awards, even if awards have
been granted repeatedly in the past.

          (c) All decisions with respect to future awards, if any, will be at the sole discretion of the
Committee.

          (d) The Participant is voluntarily participating in the Plan.

          (e) This Award is an extraordinary item that does not constitute compensation of any kind for
services of any kind rendered to the Company or its Related Corporations (including, as applicable,
the Participant’s employer) and which is outside the scope of the Participant’s employment
contract, if any.

          (f) This Award is not part of the Participant’s normal or expected compensation or salary for
any purpose, including, but not limited to, calculating any severance, resignation, termination,
redundancy, end of service payments, bonuses, long-service awards, pension or retirement benefits
or similar payments.

          (g) In the event that the Participant’s employer is not the Company, the grant of the Award
will not be interpreted to form an employment contract or relationship with the Company and,
furthermore, the grant of the Award will not be interpreted to form an employment contract with the
Participant’s employer or any Related Corporations.

          (h) The future value of the underlying Shares is unknown and cannot be predicted with
certainty.

          (i) In consideration of the grant of this Award, no claim or entitlement to compensation or
damages shall arise from termination of the Award or diminution in value of the Award or any of the
Shares issuable under the Award from termination of the Participant’s employment by the Company or
the Participant’s employer, as applicable (and for any reason whatsoever and whether or not in
breach of contract or local labor laws), and the Participant irrevocably releases the Participant’s
employer, the Company and its Related Corporations, as applicable, from any such claim that may
arise; if, notwithstanding the foregoing, any such claim is found by a court of competent
jurisdiction to have arisen, then, by signing this Agreement, the

6

 

Participant shall be deemed to have irrevocably waived his or her entitlement to pursue such
claim.

          1.4 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, the Company and its Related
Corporations for the exclusive purpose of implementing, administering and managing the
Participant’s participation in the Plan.

               (b) The Participant understands that his or her employer, the Company and its Related
Corporations, as applicable, hold certain personal information about the Participant regarding his
or her employment, 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 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.

          15. Electronic Delivery. The Company may deliver any documents related to the Award,
the Plan or future awards that may be granted under the Plan by

7

 

electronic means. Such means of electronic delivery include, but do not necessarily include,
the delivery of a link to a Company intranet or the internet site of a third party involved in
administering the Plan, the delivery of the documents via e-mail or such other means of electronic
delivery specified by the Company. Participant hereby acknowledges that Participant has read this
provision and consents to the electronic delivery of the documents. Participant acknowledges that
Participant may receive from the Company a paper copy of any documents delivered electronically at
no cost to Participant by contacting the Company by telephone or in writing. Participant further
acknowledges that Participant will be provided with a paper copy of any documents if the attempted
electronic delivery of such documents fails. Similarly, Participant understands that Participant
must provide the Company with a paper copy of any documents if the attempted electronic delivery of
such documents fails.

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

	 	 	 	 	 
	 	PHARMANET DEVELOPMENT GROUP, INC.

 	 
	 	Signature:	
 	 
	 	 	Name: John Hamill 	 
	 	 	Title:    Executive Vice President & CFO	 
	 	

 	 
	 	PARTICIPANT

 	 
	 	Signature:	
 	 
	 	 	Name:  	                    	 
	 	 	Address:  	 	 
	 	 		 	 
	 

8

 

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.

          P. Withholding Taxes shall mean the income tax, employment tax, social insurance,
payroll tax, contributions, payment on account obligations or other

A-2

 

amounts required to be withheld by the Company in connection with the issuance of the shares of Common Stock under the Award.

A-3

 

United kingdom

PHARMANET DEVELOPMENT GROUP, INC.

STOCK OPTION AGREEMENT

RECITALS

     A. The Board has adopted the Plan for the purpose of retaining the services of selected
employees who provide services to the Company (or any Related Corporation).

     B. Optionee is to render valuable services to the Company (or a Related Corporation), and the
Committee has approved the grant of an option to Optionee pursuant to this Agreement.

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

     NOW, THEREFORE, it is hereby agreed as follows:

          1. Grant of Option. The Company hereby grants to Optionee, as of the Grant Date, an
option to purchase up to the number of Option Shares specified in the Grant Notice. The Option
Shares shall be purchasable from time to time during the option term specified in Paragraph 2 at
the Exercise Price.

          2. Option Term. This option shall have a maximum term of seven (7) years measured
from the Grant Date and shall accordingly expire at the close of business on the Expiration Date,
unless sooner terminated in accordance with Paragraph 5 of this Agreement or the provisions of the
Plan.

          3. Limited Transferability. This option shall be neither transferable nor assignable
by Optionee other than by will or the laws of inheritance following Optionee’s death and may be
exercised, during Optionee’s lifetime, only by Optionee.

          4. Dates of Exercise. This option shall become exercisable for the Option Shares in
one or more installments in accordance with the Exercise Schedule set forth in the Grant Notice.
As the option becomes exercisable for such installments, those installments shall accumulate, and
the option shall remain exercisable for the accumulated installments until the Expiration Date or
sooner termination of the option term under Paragraph 5 or 6.

          5. Termination of Employment. The option term specified in Paragraph 2 shall
terminate (and this option shall cease to be outstanding) prior to the Expiration Date should any
of the following provisions become applicable:

               (a) Should Optionee cease to remain in employment with the Company (or any Related
Corporation) for any reason (other than death, Permanent

 

 

Disability or Misconduct) while this option is outstanding, then Optionee shall have a three
(3)-month period measured from the date of such cessation of employment during which to exercise
this option, but in no event shall this option be exercisable at any time after the Expiration
Date.

               (b) Should Optionee die while this option is outstanding, then this option may be exercised by
(i) the personal representative of Optionee’s estate or (ii) the person or persons to whom the
option is transferred pursuant to Optionee’s will or the laws of inheritance following Optionee’s
death. Any such right to exercise this option shall lapse, and this option shall cease to be
outstanding, upon the earlier of (i) the expiration of the twelve (12)-month period measured from
the date of Optionee’s death or (ii) the Expiration Date.

               (c) Should Optionee cease to remain in employment by reason of Permanent Disability while this
option is outstanding, then Optionee shall have a twelve (12)-month period measured from the date
of such cessation of Service during which to exercise this option. In no event shall this option
be exercisable at any time after the Expiration Date.

               (d) During the limited period of post-employment exercisability, this option may not be
exercised in the aggregate for more than the number of Option Shares for which this option is, at
the time of Optionee’s termination of employment, exercisable pursuant to the Exercise Schedule
specified in the Grant Notice or the provisions of the Plan. This option shall not become
exercisable for any additional Option Shares, whether pursuant to the normal Exercise Schedule
specified in the Grant Notice or the provisions of the Plan, following Optionee’s termination of
employment, except to the extent (if any) specifically authorized by the Committee pursuant to an
express written agreement with Optionee. Upon the expiration of such limited exercise period or
(if earlier) upon the Expiration Date, this option shall terminate and cease to be outstanding for
any exercisable Option Shares for which the option has not otherwise been exercised.

               (e) Should Optionee’s employment with the Company (or any Related Corporation) be terminated
for Misconduct or should Optionee otherwise engage in any Misconduct while this option is
outstanding, then this option shall terminate immediately and cease to remain outstanding.

               (f) For purposes of this Agreement, Optionee’s period of employment shall not include any
period of notice of termination of employment, whether expressed or implied. Optionee’s date of
cessation of employment shall mean the date upon which Optionee ceases active performance of
services for the Company (or any Related Corporation) following the provision of such notification
of termination or resignation from employment and shall be determined solely by the Company under
this Agreement without reference to any other agreement, written or oral, including Optionee’s
contract of employment.

2

 

          6. Change in Control. In the event of a change in control, the provisions of
Paragraph 14 of the Plan shall apply.

          7. Adjustment in Option 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), then
equitable adjustments shall be made to (i) the total number and/or class of securities subject to
this option and (ii) the Exercise Price in such manner as the Committee deems appropriate.

          8. Stockholder Rights. The holder of this option shall not have any stockholder
rights with respect to the Option Shares until such person shall have exercised the option, paid
the Exercise Price and become a holder of record of the purchased shares.

          9. Manner of Exercising Option.

               (a) In order to exercise this option with respect to all or any part of the Option Shares for
which this option is at the time exercisable, Optionee (or any other person or persons exercising
the option) must take the following actions:

               (i) Execute and deliver to the Company a Notice of Exercise for the Option Shares for
which the option is exercised or comply with such other procedures as the Company may
establish for notifying the Company of the exercise of this option for one or more Option
Shares.

               (ii) Pay the aggregate Exercise Price for the purchased shares in one or more of the
following forms:

          (A) cash or check made payable to the Company; or

          (B) through a special sale and remittance procedure pursuant to which
Optionee (or any other person or persons exercising the option) shall
concurrently provide irrevocable instructions (i) to a brokerage firm
(reasonably satisfactory to the Company for purposes of administering such
procedure in accordance with the Company’s pre-clearance/pre-notification
policies) to effect the immediate sale of the purchased shares and remit to
the Company, out of the sale proceeds available on the settlement date,
sufficient funds to cover the aggregate Exercise Price payable for the
purchased shares plus all applicable Withholding Taxes and (ii) to the
Company to deliver the

3

 

certificates for the purchased shares directly to such brokerage firm
on such settlement date in order to complete the sale.

     Except to the extent the sale and remittance procedure is utilized in
connection with the option exercise, payment of the Exercise Price must
accompany the Notice of Exercise (or other notification procedure) delivered
to the Company in connection with the option exercise.

               (iii) Furnish to the Company appropriate documentation that the person or persons
exercising the option (if other than Optionee) have the right to exercise this option.

               (iv) Make appropriate arrangements with the Company (or Related Corporation employing
Optionee) for the satisfaction of all Withholding Taxes applicable to the option exercise.

               (v) Make arrangements satisfactory to the Company (or Related Corporation employing
Optionee) for Optionee’s payment of the Employer NIC liability as agreed in the Grant
Notice.

               (b) As soon as practical after the Exercise Date, the Company shall issue to or on behalf of
Optionee (or any other person or persons exercising this option) a certificate for the purchased
Option Shares, with the appropriate legends affixed thereto.

               (c) In no event may this option be exercised for any fractional shares.

          10. Compliance with Laws and Regulations.

               (a) The exercise of this option and the issuance of the Option Shares upon such exercise shall
be subject to compliance by the Company and Optionee with all applicable requirements of law
relating thereto and with all applicable regulations of any stock exchange (or the Nasdaq National
Market, if applicable) on which the Common Stock may be listed for trading at the time of such
exercise and 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 and sale of any Common Stock pursuant
to this option shall relieve the Company of any liability with respect to the non-issuance or sale
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.

          11. Successors and Assigns. Except to the extent otherwise provided in Paragraph 3,
the provisions of this Agreement shall inure to the benefit of,

4

 

and be binding upon, the Company and its successors and assigns and Optionee, Optionee’s
assigns, the legal representatives, heirs and legatees of Optionee’s estate.

          12. 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 Optionee shall be in writing and
addressed to Optionee at the address indicated below Optionee’s signature line on the Grant Notice.
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.

          13. Construction. This Agreement and the option 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 this option.

          14. 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.

          15. Excess Shares. If the Option Shares covered by this Agreement exceed, as of the
Grant Date, the number of shares of Common Stock which may without stockholder approval be issued
under the Plan, then this option shall be void with respect to those excess shares, unless
stockholder approval of an amendment sufficiently increasing the number of shares of Common Stock
issuable under the Plan is obtained in accordance with the provisions of the Plan. In no event
shall the Option be exercisable with respect to any of the excess Option Shares unless and until
such stockholder approval is obtained.

          16. Additional Terms Applicable to an Incentive Option. In the event this option is
designated an Incentive Option in the Grant Notice, the following terms and conditions shall also
apply to the grant:

               (a) This option shall cease to qualify for favorable tax treatment as an Incentive Option if
(and to the extent) this option is exercised for one or more Option Shares: (A) more than three (3)
months after the date Optionee ceases to be an employee for any reason other than death or
Permanent Disability or (B) more than twelve (12) months after the date Optionee ceases to be an
employee by reason of Permanent Disability.

               (b) No installment under this option shall qualify for favorable tax treatment as an Incentive
Option if (and to the extent) the aggregate Fair Market Value (determined at the Grant Date) of the
Common Stock for which such installment first becomes exercisable hereunder would, when added to
the aggregate value (determined as of the respective date or dates of grant) of the Common Stock or
other securities for

5

 

which this option or any other Incentive Options granted to Optionee prior to the Grant Date
(whether under the Plan or any other option plan of the Company or any parent or Related
Corporation) first become exercisable during the same calendar year, exceed One Hundred Thousand
Dollars ($100,000) in the aggregate. Should such One Hundred Thousand Dollar ($100,000) limitation
be exceeded in any calendar year, this option shall nevertheless become exercisable for the excess
shares in such calendar year as a Non-Statutory Option.

               (c) Should Optionee hold, in addition to this option, one or more other options to purchase
Common Stock which become exercisable for the first time in the same calendar year as this option,
then for purposes of the foregoing limitations on the exercisability of such options as Incentive
Options, this option and each of those other options shall be deemed to become first exercisable in
that calendar year, on the basis of the chronological order in which such options were granted,
except to the extent otherwise provided under applicable law or regulation.

          17. Data Privacy.

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

          (b) Optionee understands that his or her employer, the Company and its Related Corporations,
as applicable, hold certain personal information about him or her regarding Optionee’s employment,
the nature and amount of Optionee’s compensation and the fact and conditions of Optionee’s
participation in the Plan, including, but not limited to, his or her name, home address and
telephone number, date of birth, social insurance number or other identification number, salary,
nationality, job title, any equity or directorships held in the Company and its Related
Corporations, details of all options or any other entitlement to equity awarded, canceled,
exercised, vested, unvested or outstanding in his or her favor, for the purpose of implementing,
administering and managing the Plan (the “Data”). Optionee 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 his or her country, or elsewhere, and that the
recipient’s country may have different data privacy laws and protections than his or her country.
Optionee understands that he or she may request a list with the names and addresses of any
potential recipients of the Data by contacting Optionee’s local human resources representative.
Optionee 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 his or her
participation in the Plan, including any requisite transfer of such Data as may be required to a
broker or other third party. Optionee understands that the Data will be held only as long as is
necessary to implement, administer and manage his or her participation in the Plan. Optionee
understands that

6

 

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

          18. No Entitlement Or Claims For Compensation. In accepting the grant of this option,
Optionee acknowledges the following:

               (a) The Plan is established voluntarily by the Company, the grant of options under the Plan is
made at the discretion of the Committee and the Plan may be modified, amended, suspended or
terminated by the Company at any time.

               (b) The grant of this option is voluntary and occasional and does not create any contractual
or other right to receive future grants of options, or benefits in lieu of options, even if options
have been granted repeatedly in the past.

               (c) All decisions with respect to future option grants, if any, will be at the sole discretion
of the Committee.

               (d) Optionee is voluntarily participating in the Plan.

               (e) This option is an extraordinary item that does not constitute compensation of any kind for
services of any kind rendered to the Company or any Related Corporation (including, as applicable,
Optionee’s employer) and which is outside the scope of Optionee’s employment contract, if any.

               (f) This option is not to be considered part of Optionee’s normal or expected compensation or
salary for any purpose, including, but not limited to, calculating any severance, resignation,
termination, payment in lieu of notice, redundancy, end of service payments, bonuses, long-service
awards, pension or retirement benefits or similar payments.

               (g) In the event that Optionee’s employer is not the Company, the grant of this option will
not be interpreted to form an employment contract or relationship with the Company and,
furthermore, the grant of this option will not be interpreted to form an employment contract with
Optionee’s employer or any Related Corporation.

               (h) The future value of the underlying Option Shares is unknown and cannot be predicted with
certainty.

7

 

               (i) Optionee shall have no rights, claim or entitlement to compensation or damages as a result
of Optionee’s cessation of employment for any reason whatsoever, whether or not in breach of
contract or local labor law, insofar as these rights, claim or entitlement arise or may arise from
Optionee’s ceasing to have rights under or be entitled to exercise this option as a result of such
cessation or loss or diminution in value of the option or any of the Option Shares purchased
through exercise of the option as a result of such cessation, and Optionee irrevocably releases his
or her employer, the Company and its Related Corporations, as applicable, from any such rights,
entitlement or claim that may arise. If, notwithstanding the foregoing, any such right or claim is
found by a court of competent jurisdiction to have arisen, then, by signing this Agreement,
Optionee shall be deemed to have irrevocably waived his or her entitlement to pursue such rights or
claim.

          19. Electronic Delivery. The Company may deliver any documents related to the option,
the Plan or future options that may be granted under the Plan by electronic means. Such means of
electronic delivery include, but do not necessarily include, the delivery of a link to a Company
intranet or the internet site of a third party involved in administering the Plan, the delivery of
the documents via e-mail or such other means of electronic delivery specified by the Company.
Optionee hereby acknowledges that Optionee has read this provision and consents to the electronic
delivery of the documents. Optionee acknowledges that Optionee may receive from the Company a
paper copy of any documents delivered electronically at no cost to Optionee by contacting the
Company in writing or by telephone. Optionee further acknowledges that Optionee will be provided
with a paper copy of any documents if the attempted electronic delivery of such documents fails.
Similarly, Optionee understands that Optionee must provide the Company with a paper copy of any
documents if the attempted electronic delivery of such documents fails.

8

 

APPENDIX

          The following definitions shall be in effect under the Agreement:

          A. Agreement shall mean this Stock Option Agreement.

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

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

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

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

          F. Company shall mean Pharmanet Development Group, Inc., a Delaware Company, 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.

          G. Employer NIC shall mean the employer Secondary Class 1 National Insurance
Contribution liability arising in connection with the exercise of the option.

          H. Exercise Date shall mean the date on which the option shall have been exercised in
accordance with Paragraph 9 of the Agreement.

          I. Exercise Price shall mean the exercise price per Option Share as specified in the
Grant Notice.

          J. Exercise Schedule shall mean the schedule set forth in the Grant Notice pursuant to
which the option is to become exercisable for the Option Shares in one or more installments over
the Optionee’s period of Service.

          K. Expiration Date shall mean the date on which the option expires as specified in the
Grant Notice.

          L. 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;

A-1

 

          (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.

          M. Grant Date shall mean the date of grant of the option as specified in the Grant
Notice.

          N. Grant Notice shall mean the Notice of Grant of Stock Option accompanying the
Agreement, pursuant to which Optionee has been informed of the basic terms of the option evidenced
hereby.

          O. Incentive Option shall mean an option which satisfies the requirements of Code
Section 422.

          P. Misconduct shall mean the commission of any act of fraud, embezzlement or
dishonesty by Optionee, any unauthorized use or disclosure by Optionee of confidential information
or trade secrets of the Company (or any Related Corporation), or any other intentional misconduct
by Optionee adversely affecting the business or affairs of the Company (or any Related Corporation)
in a material manner. The foregoing definition shall not in any way preclude or restrict the right
of the Company (or any Related Corporation) to discharge or dismiss Optionee or any other person in
the service of the Company (or any Related Corporation) for any other acts or omissions, but such
other acts or omissions shall not be deemed, for purposes of the Plan or this Agreement, to
constitute grounds for termination for Misconduct.

          Q. Non-Statutory Option shall mean an option not intended to satisfy the requirements
of Code Section 422.

          R. Notice of Exercise shall mean the notice of option exercise in the form prescribed
by the Company.

          S. Option Shares shall mean the number of shares of Common Stock subject to the option
as specified in the Grant Notice.

          T. Optionee shall mean the person to whom the option is granted as specified in the
Grant Notice.

A-2

 

          U. Permanent Disability shall mean the inability of Optionee to engage in any
substantial gainful activity by reason of any medically determinable physical or mental impairment
which is expected to result in death or to be of continuous duration of twelve (12) months or more.

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

          W. 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.

          X. Withholding Taxes shall mean the income tax, employment tax, social insurance,
payroll tax, contributions, payment on account obligations or other amounts required to be withheld
in connection with the exercise of the option.

A-3

 

United Kingdom Performance

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).

B. *** (the “Participant”) is to render valuable services to the Company (or a Related Corporation)
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:

	 	August 3, 2007
	 
	 	 
	Number of
Shares Subject
to Award:

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

	 	The Participant shall vest with respect to the
Shares on the date in 2010 that the Company
files its annual report on a Form 10-K with
the Securities and Exchange Commission
provided (1) the cumulative operating profit
(excluding non-recurring items) for the
preceding 3 fiscal year period (2007, 2008 and
2009) as reported on such Form 10-K’s is at
least $101 million and (2) the Participant
remains employed through each such filing
date. The Shares may vest on an accelerated
basis prior to this vesting date 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 “Issuance
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 Issuance Date
occurs or (if later) the fifteenth (15th) day
of the third calendar month following such
Issuance Date. The issuance of the Shares
shall be subject to the Company’s collection
of any applicable Withholding Taxes and
Employer NIC 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 Employment. Except as otherwise provided for in Participant’s
employment agreement, should the Participant cease employment 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. For purposes of this Agreement, the Participant’s period of employment
shall not include any period of notice of termination of employment, whether expressed or implied.
The Participant’s date of termination shall mean the date upon which he or she ceases active
employment following the provision of notification of termination or resignation from employment
and shall be determined solely by this Agreement and without reference to any other agreement,
written or oral, including the Participant’s contract of employment.

          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 Issuance 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 and
Employer NIC pursuant to the provisions of Paragraph 6.

2

 

               (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 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.

               (d) Notwithstanding anything to the contrary contained herein, the vesting of Participant’s
restricted stock units under the Award shall be subject to acceleration as provided for in
Participant’s employment agreement.

          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 and
Employer NIC.

3

 

               (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.

               (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) The Participant hereby agrees to accept all liability for Secondary Class 1 National
Insurance Contributions which may be payable by the Company (or any successor or Related
Corporation employing or previously employing the Participant) with respect to the vesting of the
Award or otherwise in connection with the Award (the “Employer NIC”). The Participant acknowledges
that the Participant has executed (or hereby agrees to execute within the time period specified by
the Company) a Form of Joint Election to effect such transfer of the Employer NIC. The Participant
agrees to pay the Employer NIC in accordance with the Joint Election.

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

               (f) 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 and Employer NIC.

          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

4

 

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. In
addition to the foregoing, the terms of this Restricted Stock Issuance Agreement are subject to the
Participant’s employment agreement with the Company, dated June 30, 2006, and if any of the terms
of this Agreement conflict with the Participant’s employment agreement, the employment agreement
shall control.

          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. Employment at Will. Except as may otherwise be set forth in the Participant’s
employment agreement, nothing in this Agreement or in the Plan shall confer upon the Participant
any right to continue in service for any period of specific duration or interfere with or otherwise
restrict in any way the rights of the Company (or any Related Corporation employing or retaining
the Participant) or of the Participant, which rights are hereby expressly reserved by each, to
terminate the Participant’s service at any time for any reason, with or without cause, and with or
without notice, subject to compliance with local all applicable laws and the provisions of the
Participant’s employment agreement (if any) with the Company or any Related Corporation.

5

 

          13. Nature of Grant; No Entitlement; No Claim for Compensation. In accepting the
grant of this Award for the number of Shares as specified above, the Participant acknowledges the
following:

               (a) The Plan is established voluntarily by the Company; it is discretionary in nature and may
be modified, amended, suspended or terminated by the Company at any time.

               (b) The grant of this Award is voluntary and occasional and does not create any contractual or
other right to receive future grants of awards, or benefits in lieu of awards, even if awards have
been granted repeatedly in the past.

               (c) All decisions with respect to future awards, if any, will be at the sole discretion of the
Committee.

               (d) The Participant is voluntarily participating in the Plan.

               (e) This Award is an extraordinary item that does not constitute compensation of any kind for
services of any kind rendered to the Company or its Related Corporations (including, as applicable,
the Participant’s employer) and which is outside the scope of the Participant’s employment
contract, if any.

               (f) This Award is not part of the Participant’s normal or expected compensation or salary for
any purpose, including, but not limited to, calculating any severance, resignation, termination,
redundancy, end of service payments, bonuses, long-service awards, pension or retirement benefits
or similar payments.

               (g) In the event that the Participant’s employer is not the Company, the grant of the Award
will not be interpreted to form an employment contract or relationship with the Company and,
furthermore, the grant of the Award will not be interpreted to form an employment contract with the
Participant’s employer or any Related Corporations.

               (h) The future value of the underlying Shares is unknown and cannot be predicted with
certainty.

               (i) In consideration of the grant of this Award, no claim or entitlement to compensation or
damages shall arise from termination of the Award or diminution in value of the Award or any of the
Shares issuable under the Award from termination of the Participant’s employment by the Company or
the Participant’s employer, as applicable (and for any reason whatsoever and whether or not in
breach of contract or local labor laws), and the Participant irrevocably releases the Participant’s
employer, the Company and its Related Corporations, as applicable, from any such claim that may
arise; if, notwithstanding the foregoing, any such claim is found by a court of competent
jurisdiction to have arisen, then, by signing this Agreement, the

6

 

Participant shall be deemed to have irrevocably waived his or her entitlement to pursue such
claim.

          14. 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, the Company and its Related
Corporations for the exclusive purpose of implementing, administering and managing the
Participant’s participation in the Plan.

               (b) The Participant understands that his or her employer, the Company and its Related
Corporations, as applicable, hold certain personal information about the Participant regarding his
or her employment, 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 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.

          15. Electronic Delivery. The Company may deliver any documents related to the Award,
the Plan or future awards that may be granted under the Plan by

7

 

electronic means. Such means of electronic delivery include, but do not necessarily include,
the delivery of a link to a Company intranet or the internet site of a third party involved in
administering the Plan, the delivery of the documents via e-mail or such other means of electronic
delivery specified by the Company. Participant hereby acknowledges that Participant has read this
provision and consents to the electronic delivery of the documents. Participant acknowledges that
Participant may receive from the Company a paper copy of any documents delivered electronically at
no cost to Participant by contacting the Company by telephone or in writing. Participant further
acknowledges that Participant will be provided with a paper copy of any documents if the attempted
electronic delivery of such documents fails. Similarly, Participant understands that Participant
must provide the Company with a paper copy of any documents if the attempted electronic delivery of
such documents fails.

          16. Confidentiality. The Participant agrees at all times during the vesting period
applicable to this Award and thereafter (including following termination of the Participant’s
employment) to hold in strictest confidence and not to use, or to disclose to any person, firm or
corporation, without the prior written consent of the Board, the performance criteria which are the
basis of the vesting of this Award.

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

	 	 	 	 	 
	 	PHARMANET DEVELOPMENT GROUP, INC.

 	 
	 	Signature:  	 	 
	 	 	Name:  	John Hamill 	 
	 	 	Title:  	Executive Vice President & CFO 	 
	 

	 	 	 	 	 
	 	PARTICIPANT

 	 
	 	Signature:  	 	 
	 	 	Name:  	 	 
	 	 	Address: 	 	 
	 	 	 	 	 

8

 

	 	 	 	 	 

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.

     P. Withholding Taxes shall mean the income tax, employment tax, social insurance,
payroll tax, contributions, payment on account obligations or other

A-2

 

amounts required to be withheld
by the Company in connection with the issuance of the
shares of Common Stock under the Award.

A-3

 

United Kingdom

PHARMANET DEVELOPMENT GROUP, INC.

NOTICE OF GRANT OF STOCK OPTION

          Notice is hereby given of the following option grant (the “Option”) to purchase shares of the
Common Stock of Pharmanet Development Group, Inc. (the “Company”):

          Optionee:

          Grant Date: August 3, 2007

          Vesting Commencement Date: August 3, 2008

          Exercise Price: $26.91 per share

          
Number
of Option Shares:                                  
               
                           
                 
         shares

          Expiration Date: August 2, 2014

          Type
of Option:  o     Incentive Stock Option

                             
      þ     Non-Qualified Stock Option

Exercise Schedule: The Option shall become exercisable with respect to the
Option Shares in a series of three (3) equal, successive, annual installments upon
Optionee’s completion of each year of employment over the three (3)-year period
measured from the Vesting Commencement Date. In no event shall the Option become
exercisable for any additional Option Shares after Optionee’s termination of
employment.

          Optionee understands and agrees that the Option is granted subject to and in accordance with
the terms of the Pharmanet Development Group, Inc. Amended and Restated 1999 Stock Plan (the
“Plan”). Optionee further agrees to be bound by the terms of the Plan and the terms of the Option
as set forth in the Stock Option Agreement attached hereto as Exhibit A. Optionee hereby
acknowledges the receipt of a copy of the official prospectus for the Plan in the form attached
hereto as Exhibit B. A copy of the Plan is available upon request made to the Corporate
Secretary at the Company’s principal offices.

          Employment at Will. Except as may otherwise be set forth in the Participant’s
employment agreement, nothing in this Agreement or in the Plan shall confer upon the Participant
any right to continue in service for any period of specific duration or interfere with or otherwise
restrict in any way the rights of the Company (or any Related Corporation employing or retaining
the Participant) or of the Participant, which rights are hereby expressly reserved by each, to
terminate the Participant’s

 

 

service at any time for any reason, with or without cause, and with or without notice, subject
to compliance with local all applicable laws and the provisions of the Participant’s employment
agreement (if any) with the Company or any Related Corporation.

          Agreement to Pay Employer National Insurance Contribution Liability. Optionee hereby
agrees to accept all liability for secondary Class 1 National Insurance Contributions which may be
payable by the Company (or any successor or any Related Corporation employing or previously
employing Optionee) with respect to the exercise of the Option or otherwise in connection with the
Option (“Employer NIC”). Optionee acknowledges that Optionee has executed (or hereby agrees to
execute within the time period specified by the Company) a joint election form to effect such
transfer of the Employer NIC to Optionee. Optionee further agrees to pay the Employer NIC in
accordance with the joint election. Optionee also agrees that the Company (or any successor) may
withhold some or all of the Option Shares acquired upon exercise of the Option until the Employer
NIC has been received by the Company.

          Definitions. All capitalized terms in this Notice shall have the meaning assigned to
them in this Notice or in the attached Stock Option Agreement.

DATED:                                        

	 	 	 	 	 	 	 
	 	 	PHARMANET DEVELOPMENT GROUP, INC.	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	
	 	 

John Hamill

Title: 
Executive Vice President & CFO

 
	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	Address:	 	 
	 

	 	
	 	
	 	 
	 

	 	 	 	 
	 	 

ATTACHMENTS

Exhibit A — Stock Option Agreement

Exhibit B — Plan Summary and Prospectus

2

 

EXHIBIT
B

PLAN SUMMARY AND PROSPECTUS

To be delivered.

3

 

United Kingdom

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).

B. *** (the “Participant”) is to render valuable services to the Company (or a Related Corporation)
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:

	 	August 3, 2007
	 
	 	 
	Number of

Shares Subject

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

Schedule:

	 	The Participant shall vest with respect to the
Shares in a series of five (5) equal,
successive, annual installments upon the
Participant’s completion of each year of
employment over the five (5)-year period
measured from the Award 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

 

 

	 	 	 
	 

	 	“Issuance
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 Issuance Date
occurs or (if later) the fifteenth (15th) day
of the third calendar month following such
Issuance Date. The issuance of the Shares
shall be subject to the Company’s collection
of any applicable Withholding Taxes and
Employer NIC 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 Employment. Except as otherwise provided for in Participant’s
employment agreement, should the Participant cease employment 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. For purposes of this Agreement, the Participant’s period of employment
shall not include any period of notice of termination of employment, whether expressed or implied.
The Participant’s date of termination shall mean the date upon which he or she ceases active
employment following the provision of notification of termination or resignation from employment
and shall be determined solely by this Agreement and without reference to any other agreement,
written or oral, including the Participant’s contract of employment.

          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 Issuance 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 and
Employer NIC 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

2

 

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 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.

               (d) Notwithstanding anything to the contrary contained herein, the vesting of Participant’s
restricted stock units under the Award shall be subject to acceleration as provided for in
Participant’s employment agreement.

          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 and
Employer NIC.

               (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

3

 

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.

               (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) The Participant hereby agrees to accept all liability for Secondary Class 1 National
Insurance Contributions which may be payable by the Company (or any successor or Related
Corporation employing or previously employing the Participant) with respect to the vesting of the
Award or otherwise in connection with the Award (the “Employer NIC”). The Participant acknowledges
that the Participant has executed (or hereby agrees to execute within the time period specified by
the Company) a Form of Joint Election to effect such transfer of the Employer NIC. The Participant
agrees to pay the Employer NIC in accordance with the Joint Election.

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

               (f) 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 and Employer NIC.

          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.

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          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. In
addition to the foregoing, the terms of this Restricted Stock Issuance Agreement are subject to the
Participant’s employment agreement with the Company, dated June 30, 2006, and if any of the terms
of this Agreement conflict with the Participant’s employment agreement, the employment agreement
shall control.

          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. Employment at Will. Except as may otherwise be set forth in the Participant’s
employment agreement, nothing in this Agreement or in the Plan shall confer upon the Participant
any right to continue in service for any period of specific duration or interfere with or otherwise
restrict in any way the rights of the Company (or any Related Corporation employing or retaining
the Participant) or of the Participant, which rights are hereby expressly reserved by each, to
terminate the Participant’s service at any time for any reason, with or without cause, and with or
without notice, subject to compliance with local all applicable laws and the provisions of the
Participant’s employment agreement (if any) with the Company or any Related Corporation.

5

 

          13. Nature of Grant; No Entitlement; No Claim for Compensation. In accepting the
grant of this Award for the number of Shares as specified above, the Participant acknowledges the
following:

               (a) The Plan is established voluntarily by the Company; it is discretionary in nature and may
be modified, amended, suspended or terminated by the Company at any time.

               (b) The grant of this Award is voluntary and occasional and does not create any contractual or
other right to receive future grants of awards, or benefits in lieu of awards, even if awards have
been granted repeatedly in the past.

               (c) All decisions with respect to future awards, if any, will be at the sole discretion of the
Committee.

               (d) The Participant is voluntarily participating in the Plan.

               (e) This Award is an extraordinary item that does not constitute compensation of any kind for
services of any kind rendered to the Company or its Related Corporations (including, as applicable,
the Participant’s employer) and which is outside the scope of the Participant’s employment
contract, if any.

               (f) This Award is not part of the Participant’s normal or expected compensation or salary for
any purpose, including, but not limited to, calculating any severance, resignation, termination,
redundancy, end of service payments, bonuses, long-service awards, pension or retirement benefits
or similar payments.

               (g) In the event that the Participant’s employer is not the Company, the grant of the Award
will not be interpreted to form an employment contract or relationship with the Company and,
furthermore, the grant of the Award will not be interpreted to form an employment contract with the
Participant’s employer or any Related Corporations.

               (h) The future value of the underlying Shares is unknown and cannot be predicted with
certainty.

               (i) In consideration of the grant of this Award, no claim or entitlement to compensation or
damages shall arise from termination of the Award or diminution in value of the Award or any of the
Shares issuable under the Award from termination of the Participant’s employment by the Company or
the Participant’s employer, as applicable (and for any reason whatsoever and whether or not in
breach of contract or local labor laws), and the Participant irrevocably releases the Participant’s
employer, the Company and its Related Corporations, as applicable, from any such claim that may
arise; if, notwithstanding the foregoing, any such claim is found by a court of competent
jurisdiction to have arisen, then, by signing this Agreement, the

6

 

Participant shall be deemed to have irrevocably waived his or her entitlement to pursue such
claim.

          14. 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, the Company and its Related
Corporations for the exclusive purpose of implementing, administering and managing the
Participant’s participation in the Plan.

               (b) The Participant understands that his or her employer, the Company and its Related
Corporations, as applicable, hold certain personal information about the Participant regarding his
or her employment, 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 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.

          15. Electronic Delivery. The Company may deliver any documents related to the Award,
the Plan or future awards that may be granted under the Plan by

7

 

electronic means. Such means of electronic delivery include, but do not necessarily include,
the delivery of a link to a Company intranet or the internet site of a third party involved in
administering the Plan, the delivery of the documents via e-mail or such other means of electronic
delivery specified by the Company. Participant hereby acknowledges that Participant has read this
provision and consents to the electronic delivery of the documents. Participant acknowledges that
Participant may receive from the Company a paper copy of any documents delivered electronically at
no cost to Participant by contacting the Company by telephone or in writing. Participant further
acknowledges that Participant will be provided with a paper copy of any documents if the attempted
electronic delivery of such documents fails. Similarly, Participant understands that Participant
must provide the Company with a paper copy of any documents if the attempted electronic delivery of
such documents fails.

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

	 	 	 	 	 
	 	PHARMANET DEVELOPMENT GROUP, INC.

 	 
	 	Signature:	
 	 
	 	 	Name: John Hamill 	 
	 	 	Title:    Executive Vice President & CFO	 
	 	

 	 
	 	PARTICIPANT

 	 
	 	Signature:	
 	 
	 	 	Name:  	                    	 
	 	 	Address:  	 	 
	 	 		 	 
	 

8

 

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.

          P. Withholding Taxes shall mean the 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-2

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