**MEMORANDUM
      OF UNDERSTANDING**


WHEREAS,
      PDI, Inc. (“PDI” or “Employer”) and Brian Boyle (“Boyle” or “Executive”) have
      agreed that Executive's resignation from, and last day of employment with
      Employer is December 31, 2005; and,




WHEREAS,
      PDI and Boyle mutually wish to terminate the employment relationship and waive
      any and all notice or cure requirements set forth in the Amended and Restated
      Employment Agreement dated May 2, 2001 (“Employment Agreement”), in particular
      Paragraphs 8(a) or (b), and, as applicable,12(i); and,




WHEREAS,
      PDI and Boyle agree that the provisions of Paragraph 8(g) of the Employment
      Agreement are not applicable to this mutual and voluntary decision to terminate
      the employment relationship; and,




WHEREAS,
      PDI and Boyle agree that the payments set forth below constitute PDI’s sole and
      complete obligation to Boyle upon termination of his employment, notwithstanding
      anything to the contrary as may be set forth in the Employment
      Agreement:




|1. | Base
              compensation through termination date (e.g, December 31, 2005) calculated
              to be in the gross amount of approximately $82,223.45 (for the period
              of
              September 16, 2005 through December 31, 2005), less withholding for
              applicable federal, state and local income and employment related taxes,
              payable in equal installments pursuant to PDIs customary payroll
              procedures in effect.
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|2. | Employee
              will be entitled to continued participation in the employee benefits,
              vacation (i.e., the current “bank of days” policy of PDI), automobile
              expense and expense reimbursement programs as described in Section
              4.6 of
              the Employment Agreement through December 31, 2005 except as may be
              limited or required by a benefit Plan.
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|3. | A
              pro rata share of any incentive compensation as described in Section
              3(b)
              of the Employment Agreement, if any is awarded, for 2005. My Boyle
              has
              been advised by PDI that it expects that there will be no incentive
              compensation for 2005.
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|4. | A
              lump sum payment equivalent to 36 times the monthly salary amount defined
              by the Employment Agreement; that is, $ 1,
              435,230.00.
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|5. | Vested,
              deferred compensation, which is presently (as of August 31, 2005)
              calculated to be $796,106.74, less any withholdings as required by
              federal, state or local income tax laws or
              regulations.
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|6. | Accrued
              but unused paid bank of days, if any, which will be reconciled as of
              December 31, 2005. Such payment shall be subject to withholdings pursuant
              to Employer’s regular payroll practices and applicable law or
              regulation.
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|7. | Company
              paid COBRA benefits commencing the day following the effective date
              of
              termination (e.g., January 1, 2006 or as otherwise determined or limited
              by the Plan documents) and extending through 12 months after the effective
              date of termination(e.g., December 31, 2006), or the economic equivalent
              thereof—approximately $13,700.88—unless Executive obtains the same or
              greater benefits through subsequent employment, at which time this
              obligation is extinguished.
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|8. | Outstanding
              equity/option grants, including the March 29, 2005 SARS equity option
              grant, shall immediately vest upon termination of employment; provided,
              however, all stock options then held by Executive will expire and/or
              terminate 90 days after Executive’s effective date of termination (e.g.,
              December 31, 2005), consistent with the Plan or controlling grant
              agreement.
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|9. | To
              continue to maintain directors and officers liability insurance covering
              the Executive in a reasonable and adequate amount determined by the
              Company through December 31, 2005 on the same terms as all other directors
              and officers of PDI.
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|10. | To
              reimburse Executive an amount equivalent to one-half of the reasonable
              attorney’s fees incurred with respect to this memorandum of understanding
              up to a maximum payment by PDI of $5,000.00 within 30 days following
              presentment, review and approval of a statement of
              services.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



And,
      WHEREAS, Boyle acknowledges his continuing obligations to PDI under Sections
      9
      and 10(a)-(g) of the Employment Agreement, such provisions shall remain in
      full
      force and effect notwithstanding any express or implied limitation set forth
      in
      the Employment Agreement.




And,
      WHEREAS it is the intention of the parties that his Memorandum of Understanding
      hereby fully supersedes the Employment Agreement, which is hereby terminated
      and
      shall no longer be in effect, except
      with respect to Sections 7(a)-(i), 8(e) & (h), 9, 10 (as discussed above),
      12 (g), (h) and (i) ,
      which
      Employer and Executive hereby agree survive such termination and shall remain
      in
      full force and effect. In addition, to the extent other Sections of the
      Employment Agreement are referenced herein, the parties agree that the language
      of such sections in intended to apply to the extent and in the manner expressly
      agreed herein. Employer shall provide Executive with a determination by the
      Accounting Firm within fifteen (15) business days as set force in Section 8(e)
      of the Employment Agreement.




And,
      WHEREAS it is the intention of the parties that the compensation, benefits
      and
      other consideration set forth in paragraphs numbered 1-6, 9 and 10 above, shall
      be paid or provided to Executive regardless of death, disability or PDI’s
      determination to terminate for cause or otherwise accelerate Executive’s last
      day of work, as if Executive’s effective date of termination was December 31,
      2005 pursuant to this Memorandum of Understanding.




**General
      Release of Claim.** Executive,
      his heirs, executors, administrators, fiduciaries, successors and/or assigns,
      knowingly and voluntary release (and forever give up, to the fullest extent
      permitted by law) Employer, it’s past, present and future direct or indirect
      parent organizations, subsidiaries, division, affiliated entities, and its
      and
      their partners, officers, directors, trustees, administrations, fiduciaries,
      employment benefit plans and/or pension plans or funds, executors, attorneys,
      employees, insurers, reinsurers and/or agents and their successors and assigns
      individually and in their official capacities (collectively referred to herein
      as “Released Parties” or “Released Party”), jointly and severally, of and from
      all claims and discovery, known or unknown, that Employee has or may have
      against Released Parties as of the date of execution of this Agreement,
      including, but not limited to, any alleged violation of:




|· | The
              National Labor Relations Act;
|- | -----------------------------------------------

|· | Title
              VII of the Civil Rights Act;
|- | ------------------------------------------------

|· | Civil
              Rights Act of 1991;
|- | ---------------------------------------

|· | Sections
              1981 through 1988 of Title 42 of the United States
              Code;
|- | ---------------------------------------------------------------------------------------------

|· | The
              Employee Retirement Income Security Act;
|- | ----------------------------------------------------------

|· | The
              Fair Credit Reporting Act;
|- | --------------------------------------------

|· | The
              Immigration Reform Control Act;
|- | -------------------------------------------------

|· | The
              Americans with Disabilities Act;
|- | --------------------------------------------------

|· | The
              Rehabilitation Act;
|- | -------------------------------------

|· | The
              Age Discrimination in Employment Act;
|- | -------------------------------------------------------

|· | The
              Occupational Safely and Health Act;
|- | -----------------------------------------------------

|· | The
              Family and Medical Leave Act;
|- | -----------------------------------------------

|· | The
              Equal Pay Act;
|- | --------------------------------

|· | The
              Fair Labor Standards Act;
|- | -------------------------------------------

|· | The
              Uniformed Services Employment and Reemployment Rights
              Act;
|- | ------------------------------------------------------------------------------------------

|· | Worker
              Adjustment and Retraining Notification
              Act;
|- | ------------------------------------------------------------------------------

|· | Employee
              Polygraph Protection Act;
|- | ------------------------------------------------

|· | The
              New Jersey Law Against Discrimination;
|- | --------------------------------------------------------

|· | The
              New Jersey Family Leave Act;
|- | ----------------------------------------------

|· | The
              New Jersey State Wage and Hour Law;
|- | -----------------------------------------------------

|· | The
              New Jersey Conscientious Employee Protection
              Act;
|- | ---------------------------------------------------------------------------------

|· | The
              New Jersey Equal Pay Law;
|- | -------------------------------------------

|· | The
              New Jersey Occupational Safely and Health
              Law;
|- | ------------------------------------------------------------------------------

|· | The
              New Jersey Smokers’ Rights Law;
|- | -------------------------------------------------

|· | The
              New Jersey Genetic Privacy Act;
|- | -------------------------------------------------

|· | The
              New Jersey Fair Credit Reporting Act;
|- | -------------------------------------------------------

|· | The
              New Jersey Statutory Provision Regarding Retaliation/Discrimination
              for
              Filing A Workers’ Compensation Claim;
|- | -----------------------------------------------------------------------------------------------------------------------------------------------------------

|· | The
              New Jersey Public Employees’ Occupational Safely and Health
              Act;
|- | ------------------------------------------------------------------------------------------------

|· | New
              Jersey laws regarding Political Activities of Employees, Lie Detector
              Tests, Jury Duty, Employment Protection, and
              Discrimination;
|- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|· | any
              other federal, state or local civil rights laws, whistle-blower or
              any
              other local, state or federal law, regulation or
              ordinance;
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|· | any
              public policy, contract (oral, written or implied), tort, constitution
              or
              common law;
|- | -----------------------------------------------------------------------------------------------------------------------------------

|· | any
              claims for vacation, sick or personal leave or payment pursuant to
              any
              practice, policy, handbook or manual;
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------

|· | any
              claims related to the Employment Agreement;
              or
|- | ------------------------------------------------------------------------------

|· | any
              allegation for costs, fees, or other expenses including attorney’s
              fees.
|- | --------------------------------------------------------------------------------------------------------






Employer
      hereby confirms that the Indemnification provisions of Section 7 of the
      Employment Agreement are not waived, impacted, affected or modified in any
      way
      by this Memorandum and General Release. Executive also affirms that he has
      not
      complained of and is not aware of any fraudulent activity or any act(s) which
      would form the basis of a claim of fraudulent or illegal activity of Employer.
      Nothing in this General Release shall impair, affect, waive, alter or limit
      the
      benefits payable to Executive as set forth in this Memorandum of
      Understanding.




**Revocation.** Executive may revoke this Memorandum of Understanding for a period of seven(7)
      calendar days following the day he executes this agreement. Any revocation
      within this period must be submitted, in writing, to Beth Jacobson, General
      Counsel, and state, “I hereby revoke my acceptance of our Agreement and General
      Release: The revocation must be personally delivered to Beth Jacobson, General
      Counsel or Kerry Skolkin, Associate General Counsel, or mailed to PDI, Inc.,
      1
      Rough 17 South, Saddle River, NJ 07458, Attn: Beth Jacobson, General Counsel
      and
      postmarked within seven (7) calendar days of execution of this Agreement. This
      Agreement shall not become effective or enforceable until the revocation period
      has expired. If the last day of the revocation period is a Saturday, or Sunday
      or a legal holiday in New Jersey, then the revocation period shall not expire
      until the next following day which is not a Saturday, Sunday or legal
      holiday.




**Confidentiality.**  To
      the
      extent permitted by law, Executive agrees not to disclose any information
      regarding the existence or substance of this Memorandum of Understanding, except
      to his spouse, tax advisor, or an attorney with whom he chooses to consult
      regarding this agreement, each of whom shall likewise agree to keep the
      information confidential. This Memorandum of Understanding shall not be filed
      with any court and shall remain forever confidential expect in an action to
      enforce or for breach of this agreement. If Executive asserts an action to
      enforce, or for breach of, this agreement, he shall use his best effort to
      maintain such confidentiality by whatever means necessary, including, but not
      limited to, submitting the agreement to a court under confidential
      seal.




EXECUTIVE
      IS HEEREBY ADIVSED THAT HE HAS UP TO TWENTY-ONE (21) CALENDAR DAYS TO REVIEW
      THIS MEMORANDUM OF UNDERSTANDING AND IS HEREBY ADVISED TO CONSULT WITH AN
      ATTORNEY PRIOR TO SIGNING THIS AGREEMETN, EXECUTIVE AGREES THAT ANY
      MODIFICATIONS, MATERIAL OR OTHERWISE, MADE TO THIS MEMORANDUM OF UNDERSTAND
      DO
      NOT RESTART OR AFFECT IN ANY MANNER THE ORIGINAL TWENTY-ONE(21) CALENDAR DAY
      CONSIDERATION PERIOD.




HAVING
      ELECTED TO EXECUTE THIS MEMORANDUM OF UNDERSTANDING, EXECUTIVE FREELY AND
      KNOWINGLY, AND AFTER DUE CONSIDERATION, ENTERS INTO THIS AGREEMETN INTENTING
      TO
      WAIVE, SETTLE AND RELEASE ALL CLAIMS EXECTUIVE HAX OR MIGHT HAVE AGAINST RELASED
      PARTIES AS OF THE DATE OF EXECUTIVE OF THIS AGREEMENT.




IN
      WITNESS WHEREOF, the parties hereto knowingly and voluntarily executed this
      Agreement and General Release as of the date set forth below:









**Executive**
            
            **ON
                BEHALF OF EMPLOYER AS DEFINED HEREIN****By:****Brian
                Boyle**
            
            **Charles
                T. Saldarini**
              
              **Chief
                Executive Officer****Date:
                September ____, 2005**
            
            **Date:
                September _____, 2005**