Document:

exhibit10-2hd.htm

    AMENDED AND RESTATED
EMPLOYMENT SEPARATION AGREEMENT

    

    This
Amended and Restated Employment Separation Agreement (the “Agreement”), dated as
of December 31, 2008, is entered into by and between PDI, Inc., a Delaware
corporation (the “Company”), having its principal place of business at 1 Route
17 South, Saddle River, New Jersey 07458, and Howard Drazner, residing
at                          (the
“Executive”).

    

    WHEREAS,
the Company and Executive previously entered into an Employment Separation
Agreement, effective as of September 1, 2007 (the “Prior Agreement”);
and

    

    WHEREAS,
the Company and Executive desire to amend and restate the Prior Agreement to
comply with the requirements of Section 409A of the Internal Revenue Code of
1986, as amended and the regulations promulgated thereunder (the “Code”), and to
make certain other clarifying changes, with this Agreement to supersede the
Prior Agreement in its entirety.

    

    NOW,
THEREFORE, in consideration of the premises and mutual agreements herein
contained, the parties hereby agree as follows:

    

    1.           Employment.                                In
connection with the Executive’s continued employment and contingent upon the
Executive’s execution of the Company’s Confidentiality, Non-Solicitation and
Covenant Not to Compete Agreement, the Company shall employ the Executive as
President, Pharmakon, which employment shall terminate upon notice by either
party, for any reason.  Executive
understands and agrees that Executive’s employment with the Company is at will
and can be terminated at any time by either party, and for any or no
reason.

    

    2.           Termination
Benefits.

    

    a.           In
further consideration for Executive’s continued employment and agreement to
execute the Company’s Confidentiality, Non-Solicitation and Covenant Not to
Compete Agreement, and provided that, as of the 30th day
following his termination date, Executive has executed the PDI Agreement and
General Release given to him upon termination which will be in substantially the
same form as the Agreement and General Release attached hereto (the “Release”),
any applicable revocation period has expired and Executive has not revoked the
Release during such revocation period, the Company agrees that if it terminates
the Executive’s employment without “Cause” or due to a “Change of Control”, or
if Executive resigns for “Good Reason,” as those terms are defined below, the
Company will provide the following compensation and benefits to
Executive:

    

    i.           The
Company will pay Executive a lump sum payment equal to the product of twelve
(12) times Executive’s Base Monthly Salary (excluding incentives, bonuses, and
other compensation), plus the average of the cash incentive compensation paid to
Executive during the three (3) years immediately preceding the termination
date.  Subject to Section 2(e) below, such payment shall be made
within forty-five (45) days after Executive’s termination date.

    

    ii.           The
Company will reimburse Executive for the cost of the premiums for COBRA group
health continuation coverage under the Company’s group health plan paid by
Executive for coverage during the period beginning following Executive’s
termination date and ending on the earlier of either: (a) first anniversary of
Executive’s termination date; or (b) the date on which Executive becomes
eligible for other group health coverage, provided that no reimbursement shall
be paid unless and until Executive submits proof of payment acceptable to the
Company within 90 days after Executive incurs such expense.  Any
reimbursements of the COBRA premium that are taxable to the Executive shall be
made on or before the last day of the year following the year in which the COBRA
premium was incurred, the amount of

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    the COBRA
premium eligible for reimbursement during one year shall not affect the amount
of COBRA premium eligible for reimbursement in any other year, and the right to
reimbursement shall not be subject to liquidation or exchange for another
benefit.

    

    b.           No
termination benefits will be paid if Executive resigns or terminates Executive’s
employment for any reason other than “Good Reason” or the Company terminates
Executive’s employment for “Cause” as determined by the Chief Executive Officer,
the President or the Board or its designee(s).

    

    c.           In
the event Executive’s employment with the Company is terminated by either party
for any reason, Executive shall continue to be bound by the Company’s
Confidentiality, Non-Solicitation and Covenant Not to Compete Agreement for the
periods set forth therein.

    

    d.           Except
as may be provided under this Agreement, any benefits to which Executive may be
entitled pursuant to the plans, policies and arrangements of the Company shall
be determined and paid in accordance with the terms of such plans, policies and
arrangements, and Executive shall have no right to receive any other
compensation or benefits, or to participate in any other plan or arrangement,
following the termination of Executive’s employment by either party for any
reason.

    

    e.           Notwithstanding
anything herein to the contrary, if at the time of Executive’s termination of
employment with the Company, Executive is a “specified employee” within the
meaning of Code Section 409A and the regulations promulgated thereunder, then
the Company shall delay the commencement of such payments (without any
reduction) by a period of six (6) months after Executive’s termination of
employment.  Any payments that would have been paid during such six
(6) month period but for the provisions of the preceding sentence shall be paid
in a lump sum to Executive six (6) months and one (1) day after Executive’s
termination of employment.  The 6-month payment delay requirement of
this Section 2(e) shall apply only to the extent that the payments under this
Section 2 are subject to Code Section 409A.  With respect to payments
or benefits under this Agreement that are subject to Code Section 409A, whether
Executive has had a termination of employment shall be determined in accordance
with Code Section 409A and applicable guidance issued thereunder.

    

    f.           All
amounts otherwise payable under this Agreement shall be subject to customary
withholding and other employment taxes and shall be subject to such other
withholding as may be required in accordance with the terms of this Agreement or
applicable law.

    

    3.           Definitions.

    

    a.           Cause
shall mean: (1) the failure of Executive to use Executive’s best efforts in
accordance with Executive’s position, skill and abilities to achieve Executive’s
goals as periodically set by the Company; (2) the failure by Executive to comply
with the reasonable instructions of the Chief Executive Officer and/or his
designee, provided that such instructions are consistent with Executive’s duties
and responsibilities hereunder, and which such refusal continues unremedied for
a period of ten (10) business days after the Chief Executive Officer and/or his
designee has given written notice to Executive specifying in reasonable detail
the instructions Executive has failed to comply with; (3) the failure by
Executive to adhere to the Company’s documented policies and procedures that
continues unremedied for a period of ten (10) business days after the Chief
Executive Officer and/or his designee has given written notice to Executive
specifying in reasonable detail Executive’s breach of such policies and/or
procedures; (4) the failure of Executive to adhere to moral and ethical business
principles consistent with the Company’s Code of Business Conduct and Guidelines
on Corporate Governance as in effect from time to time; (5) Executive's
conviction of any felony or any criminal offense involving fraud, deceit,
dishonesty or unethical behavior  (including the entry of a nolo contendere plea); or (6)
any documented act of material dishonesty or fraud by the Executive in the
commission of his duties.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

    b.           Base
Monthly Salary shall mean an amount equal to one-twelfth of Executive’s
then current annual base salary.  Base Monthly Salary shall not
include incentives, bonus(es), health and welfare benefits, car allowances, long
term disability insurance or any other compensation or benefit provided to
employees of the Company at the executive level.

    

    c.           Change of
Control shall mean: (1) any merger by the Company into another
corporation or corporations which results in the stockholders of the Company
immediately prior to such transaction owning less than 51% of the surviving
corporation; (2) any acquisition (by purchase, lease or otherwise) of all or
substantially all of the assets of the Company by any person, corporation or
other entity or group thereof acting jointly; (3) the acquisition of beneficial
ownership of voting securities of the Company (defined as common stock of the
Company or any securities having voting rights that the Company may issue in the
future) or rights to acquire voting securities of the Company (defined as
including, without limitation, securities that are convertible into voting
securities of the Company (as defined above) and rights, options, warrants and
other agreements or arrangements to acquire such voting securities) by any
person, corporation or other entity or group thereof acting jointly, in such
amount or amounts as would permit such person, corporation or other entity or
group thereof acting jointly to elect a majority of the members of the Board, as
then constituted; or (4) the acquisition of beneficial ownership, directly or
indirectly, of voting securities and rights to acquire voting securities having
voting power equal to 51% or more of the combined voting power of the Company’s
then outstanding voting securities by any person, corporation or other entity or
group thereof acting jointly.  Notwithstanding the preceding sentence,
(i) any transaction that involves a mere change in identity form or place of
organization within the meaning of Section 368(a)(1)(F) of the Code, or a
transaction of similar effect, shall not constitute a Change of
Control.

    

    d.           Good
Reason.  Executive’s termination of employment with the Company
shall be for Good Reason if (i) Executive notifies the Company in writing that
one of the Good Reason Events (as defined below) has occurred, which notice
shall be provided within ninety (90) days after he first becomes aware of the
occurrence of such Good Reason Event, (ii) the Company fails to cure such Good
Reason Event within thirty (30) days after receipt of the written notice from
Executive (the “Cure Period”) and (iii) Executive resigns employment within
thirty (30) days following expiration of the Cure Period.  For
purposes of this Agreement, a “Good Reason Event” shall mean any of the
following which occur without Executive’s consent: (1) the Company’s failure to
timely pay any material amount of compensation to Executive when due; (2) a
reduction in Executive’s annual base salary of more than 15% unless all
similarly situated executives receive a like reduction in base pay; (3) the
relocation of Executive’s principal place of employment to a location more than
50 miles from Executive’s current principal place of employment; and (4) a
material adverse change in the Executive's duties and
responsibilities.  

    

    4.           Integration;
Amendment.  This Agreement,
the Company’s Confidentiality, Non-Solicitation and Covenant Not to Compete
Agreement, and the Executive’s Individual Stock Agreement constitute the entire
agreement between the parties hereto with respect to the matters set forth
herein and supersede and render of no force and effect all prior understandings
and agreements between the parties with respect to the matters set forth
herein.  No amendments or additions to such agreements shall be
binding unless in writing and signed by both parties.

    

    5.           Governing
Law; Headings.  This Agreement
and its construction, performance and enforceability shall be governed by, and
construed in accordance with, the laws of the State of New Jersey, without
regard to its conflicts of law provisions.  Headings and titles herein
are included solely for convenience and shall not affect, or be used in
connection with, the interpretation of this Agreement.

    

    6.           Jurisdiction.  Except as
otherwise provided for herein, each of the parties: (a) irrevocably submits to
the exclusive jurisdiction of any state court sitting in Bergen County, New
Jersey or federal court

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    sitting
in New Jersey in any action or proceeding arising out of or relating to this
Agreement; (b) agrees that all claims in respect of the action or proceeding may
be heard and determined in any such court; and (c) agrees not to bring any
action or proceeding arising out of or relating to this Agreement in any other
court.  Each of the parties waives any defense of inconvenient forum
to the maintenance of any action or proceedings so brought and waives any bond,
surety or other security that might be required of any other party with respect
thereto.  Any party may make service on another party by sending or
delivering a copy of the process to the party to be served at the address set
forth above or such updated address as may be provided to the other
party.  Nothing in this Section 6, however, shall affect the right of
any party to serve legal process in any other manner permitted by
law.

    

    7.           Prevailing
Party Provision.  Each of the
parties agrees that it/he will not file any action alleging a breach of this
Agreement against the other without first providing the other party with ten
(10) business days’ notice, in writing, of the potential cause of
action.  The parties agree and expect that during that notice period,
each will work in good faith to attempt to resolve the dispute and/or cure any
breach.  In the event the parties cannot resolve any dispute and an
action is filed based on an alleged breach of the Agreement, the parties agree
that the prevailing party in such action shall receive reimbursement of its/her
reasonable attorneys’ fees and costs from the non-prevailing party.

    

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

    

    EXECUTIVE

    

    

    By:   /s/ Howard
Drazner                                                                           

    Howard Drazner

    

    

    PDI, INC.

    

    

    By:   /s/ Nancy
Lurker                                                                           

    Nancy
Lurker

    Chief Executive Officer

    

    

    
      
         

      

      
        4exhibit10-3pt.htm

    AMENDED AND RESTATED
EMPLOYMENT SEPARATION AGREEMENT

    

    This
Amended and Restated Employment Separation Agreement (the “Agreement”),
effective as of December 31, 2008, is entered into by and between PDI, Inc., a
Delaware corporation (the “Company”), having its principal place of business at
1 Route 17 South, Saddle River, New Jersey 07458, and Peter Tilles, residing
at                               (the
“Executive”).

    

    WHEREAS,
the Company and Executive previously entered into an Employment Separation
Agreement, effective as of February 1, 2008 (the “Prior Agreement”);
and

    

    WHEREAS,
the Company and Executive desire to amend and restate the Prior Agreement to
comply with the requirements of Section 409A of the Internal Revenue Code of
1986, as amended and the regulations promulgated thereunder (the “Code”), and to
make certain other clarifying changes, with this Agreement to supersede the
Prior Agreement in its entirety.

    

    NOW,
THEREFORE, in consideration of the premises and mutual agreements herein
contained, the parties hereby agree as follows:

    

    
      	
              1.

            	
              Employment.

            	
              In
      connection with the Executive’s continued employment, the Company shall
      employ the Executive as President, Marketing Research and Consulting of
      the Company, which employment shall terminate upon notice by either party,
      for any reason.  Executive
      understands and agrees that Executive’s employment with the Company is at
      will and can be terminated at any time by either party, and for any or no
      reason.

            

    

    

    
      	
              2.

            	
              Compensation
      and Benefits Payable Upon Involuntary Termination without Cause or
      Resignation for Good Reason.

            

    

    

    
      	
               
      

            	
              a.

            	
              Triggering
      Event.  In further consideration for Executive’s
      continued employment, Executive will receive the compensation and benefits
      set forth in this Section 2 if the following requirements are
      met:

            

    

    

    
      	
               
      

            	
              i.

            	
              Executive’s
      employment is terminated involuntarily by the Company at any time for
      reasons other than death, total disability or Cause, or Executive resigns
      from employment for Good Reason;
and

            

    

    

    
      	
               
      

            	
              ii.

            	
              As
      of the 30th
      day following his termination date, Executive has executed the Agreement
      and General Release in substantially the form attached to this Agreement,
      or in such form as may be provided by the Company (the “Release”), any
      applicable revocation period has expired and Executive has not revoked the
      Release during such revocation
period.

            

    

    

    
      	
               
      

            	
              b.

            	
              Compensation
      and Benefits.  The Company will provide the following
      compensation and benefits to
Executive:

            

    

    

    
      	
               
      

            	
              i.

            	
              The
      Company will pay Executive a lump sum payment equal to the product of
      twelve (12) times Executive’s Base Monthly Salary (excluding incentives,
      bonuses, and other compensation), plus the average of the cash incentive
      compensation paid to Executive during the three (3) years immediately
      preceding the termination date (or, if the Executive was not employed by
      the Company during the three (3) immediately preceding years, the average
      of or actual cash incentive compensation paid to Executive during the two
      (2) preceding years or one (1) preceding year,
  as

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              applicable).  Subject
      to Section 2(c) below, such payment shall be made within forty-five (45)
      days of Executive’s termination
date.

            

    

    

    
      	
               
      

            	
              ii.

            	
              The
      Company will reimburse Executive for the cost of the premiums for COBRA
      group health continuation coverage under the Company’s group health plan
      paid by Executive for coverage during the period beginning following
      Executive’s termination date and ending on the earlier of
      either:  (A) first anniversary of Executive’s termination date;
      or (B) the date on which Executive becomes eligible for other group health
      coverage, provided that no reimbursement shall be paid unless and until
      Executive submits proof of payment acceptable to the Company within 90
      days after Executive incurs such expense.  Any reimbursements of
      the COBRA premium that are taxable to the Executive shall be made on or
      before the last day of the year following the year in which the COBRA
      premium was incurred, the amount of the COBRA premium eligible for
      reimbursement during one year shall not affect the amount of COBRA premium
      eligible for reimbursement in any other year, and the right to
      reimbursement shall not be subject to liquidation or exchange for another
      benefit.

            

    

    

    
      	
               
      

            	
              c.

            	
              Delay
      of Payment to Comply with Code Section
      409A.  Notwithstanding anything herein to the contrary,
      if at the time of Executive’s termination of employment with the Company,
      Executive is a “specified employee” within the meaning of Code Section
      409A and the regulations promulgated thereunder, then the Company shall
      delay the commencement of such payments (without any reduction) by a
      period of six (6) months after Executive’s termination of employment and
      any payments so deferred shall earn interest calculated at the prime rate
      of interest reported by The Wall Street Journal as of the date of
      termination.  Any payments that would have been paid during such
      six (6) month period but for the provisions of the preceding sentence
      shall be paid in a lump sum to Executive six (6) months and one (1) day
      after Executive’s termination of employment.  The 6-month
      payment delay requirement of this Section 2(c) shall apply only to the
      extent that the payments under this Section 2 are subject to Code Section
      409A.  With respect to payments or benefits under this Agreement
      that are subject to Code Section 409A, whether Executive has had a
      termination of employment shall be determined in accordance with Code
      Section 409A and applicable guidance issued
  thereunder.

            

    

    

    3.           Other
Compensation.

    

    
      	
               
      

            	
              a.

            	
              Except
      as may be provided under this Agreement, any benefits to which Executive
      may be entitled pursuant to the plans, policies and arrangements of the
      Company shall be determined and paid in accordance with the terms of such
      plans, policies and arrangements, and Executive shall have no right to
      receive any other compensation or benefits, or to participate in any other
      plan or arrangement, following the termination of Executive’s employment
      by either party for any reason.

            

    

    

    
      	
               
      

            	
              b.

            	
              Notwithstanding
      any provision contained herein to the contrary, in the event of any
      termination of employment, the Company shall pay Executive his or her
      earned, but unpaid, base salary within ten (10) days of Executive’s
      termination date and shall reimburse Executive for any accrued, but
      unpaid, reasonable business expenses, in each case, earned or accrued as
      of the date of termination.  Executive shall submit
      documentation of any business expenses within ninety (90) days of his or
      her termination date and any reimbursements of such expenses that are
      taxable to the Executive shall be made on or before the last day of the
      year following the year in which the expense was incurred, the amount of
      the expense eligible

            

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              for
      reimbursement during one year shall not affect the amount of reimbursement
      in any other year, and the right to reimbursement shall not be subject to
      liquidation or exchange for another
benefit.

            

    

    

    
      	
              4.

            	
              Withholding.  All
      amounts otherwise payable under this Agreement shall be subject to
      customary withholding and other employment taxes, and shall be subject to
      such other withholding as may be required in accordance with the terms of
      this Agreement or applicable law.

            

    

    

    
      	
              5.

            	
              Confidentiality,
      Non-Solicitation and Covenant Not to Compete
      Agreement.  In the event Executive’s employment with the
      Company is terminated by either party for any reason, Executive shall
      continue to be bound by the Company’s Confidentiality, Non-Solicitation
      and Covenant Not to Compete Agreement for the periods set forth therein (a
      copy of which is attached to this
Agreement).

            

    

    

    6.           Definitions.

    

    
      	
               
      

            	
              a.

            	
              Cause
      shall mean: (i) the failure of Executive to use Executive’s best efforts
      in accordance with Executive’s position, skill and abilities to achieve
      Executive’s goals as periodically set by the Company that continues
      unremedied for a period of ten (10) business days after the Chief
      Executive Officer and/or his designee has given written notice to
      Executive specifying in reasonable detail Executive’s failure; (ii) the
      failure by Executive to comply with the reasonable instructions of the
      Chief Executive Officer and/or his designee and which such refusal
      continues unremedied for a period of ten (10) business days after the
      Chief Executive Officer and/or his designee has given written notice to
      Executive specifying in reasonable detail the instructions Executive has
      failed to comply with; (iii) the failure by Executive to adhere to the
      Company’s documented policies and procedures that continues unremedied for
      a period of ten (10) business days after the Chief Executive Officer
      and/or his designee has given written notice to Executive specifying in
      reasonable detail Executive’s breach of such policies and/or procedures;
      (iv) the failure of Executive to adhere to moral and ethical business
      principles consistent with the Company’s Code of Business Conduct and
      Guidelines on Corporate Governance as in effect from time to time that
      continues unremedied for a period of ten (10) business days after the
      Chief Executive Officer and/or his designee has given written notice to
      Executive specifying in reasonable detail Executive’s failure; (v)
      Executive's conviction of a criminal offense (including the entry of a
      nolo contendere plea); or (vi) any documented act of material dishonesty
      or fraud by the Executive in the commission of his or her duties that
      continues unremedied for a period of ten (10) business days after the
      Chief Executive Officer and/or his designee has given written notice to
      Executive specifying in reasonable detail Executive’s conduct; or (vii)
      Executive engages in an act or series of acts constituting misconduct
      resulting in a misstatement of the Company’s financial statements due to
      material non-compliance with any financial reporting requirement within
      the meaning of Section 304 of The Sarbanes-Oxley Act of
    2002.

            

    

    

    
      	
               
      

            	
              b.

            	
              Base
      Monthly Salary shall mean an amount equal to one-twelfth of
      Executive’s then current annual base salary.  Base Monthly
      Salary shall not include incentives, bonus(es), health and welfare
      benefits, car allowances, long term disability insurance or any other
      compensation or benefit provided to Executives of the Company at the
      executive level.

            

    

    

    
      	
               
      

            	
              c.

            	
              Change
      of Control shall mean: (i) any merger by the Company into another
      corporation or corporations which results in the stockholders of the
      Company immediately prior to such transaction owning less than 51% of the
      surviving corporation; (ii) any acquisition (by purchase, lease or
      otherwise) of all or substantially all of the assets of the Company by any
      person, corporation or other entity or group thereof acting jointly; (iii)
      the acquisition of beneficial ownership of voting securities of the
      Company (defined as common stock of
the

            

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              Company
      or any securities having voting rights that the Company may issue in the
      future) or rights to acquire voting securities of the Company (defined as
      including, without limitation, securities that are convertible into voting
      securities of the Company (as defined above) and rights, options, warrants
      and other agreements or arrangements to acquire such voting securities) by
      any person, corporation or other entity or group thereof acting jointly,
      in such amount or amounts as would permit such person, corporation or
      other entity or group thereof acting jointly to elect a majority of the
      members of the Board, as then constituted; or (iv) the acquisition of
      beneficial ownership, directly or indirectly, of voting securities and
      rights to acquire voting securities having voting power equal to 51% or
      more of the combined voting power of the Company’s then outstanding voting
      securities by any person, corporation or other entity or group thereof
      acting jointly. Notwithstanding the preceding sentence, any transaction
      that involves a mere change in identity form or place of organization
      within the meaning of Section 368(a)(1)(F) of the Internal Revenue Code of
      1986, as amended, or a transaction of similar effect, shall not constitute
      a Change of Control.

            

    

    

    
      	
               
      

            	
              d.

            	
              Good
      Reason.  Executive’s termination of employment with the
      Company shall be for Good Reason if (i) Executive notifies the Company in
      writing that one of the Good Reason Events (as defined below) has
      occurred, which notice shall be provided within ninety (90) days after he
      becomes aware of the occurrence of such Good Reason Event, (ii) the
      Company fails to cure such Good Reason Even within thirty (30) days after
      receipt of the written notice from Executive (the “Cure Period”) and (iii)
      Executive resigns employment within thirty (30) days following expiration
      of the Cure Period.  For purposes of this Agreement, a “Good
      Reason Event” shall mean any of the following which occur without
      Executive’s consent:

            

    

    

    i.           Prior
to a Change of Control,

    

    
      	
               
      

            	
              A.

            	
              The
      failure by the Company to pay Executive any material amount of his or her
      current salary, or any material amount of his or her compensation deferred
      under any plan, agreement or arrangement of or with the Company that is
      currently due and payable;

            

    

    

    
      	
               
      

            	
              B.

            	
              A
      material reduction in Executive’s annual base salary; provided that a
      reduction consistent with reductions made to the annual base salaries for
      similarly situated senior executives of no more than 15% shall not
      constitute Good Reason; or

            

    

    

    
      	
               
      

            	
              C.

            	
              The
      relocation of Executive’s principal place of employment to a location more
      than 50 miles from Executive’s current principal place of
      employment.

            

    

    

    ii.           During
the two (2) year period following any Change of Control,

    

    
      	
               
      

            	
              A.

            	
              The
      failure by the Company to pay Executive any material amount of his or her
      current salary, or any material amount of his or her compensation deferred
      under any plan, agreement or arrangement of or with the Company that is
      currently due and payable;

            

    

    

    
      	
               
      

            	
              B.

            	
              A
      material reduction in Executive’s annual base salary; provided that a
      reduction consistent with reductions made to the annual base salaries for
      similarly situated senior executives of no more than 15% shall not
      constitute Good Reason;

            

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    C.           The
relocation of Executive’s principal place of employment to a location more than
50 miles from Executive’s current principal place of employment;

    

    
      	
               
      

            	
              D.

            	
              A
      material adverse alteration of Executive’s duties and responsibilities
      from those in effect immediately prior to the Change of
      Control;

            

    

    

    
      	
               
      

            	
              E.

            	
              An
      intentional, material reduction by the Company of Executive’s aggregate
      target incentive awards under any short-term and/or long-term incentive
      plans; and

            

    

    

    
      	
               
      

            	
              F.

            	
              The
      material failure of the Company to maintain Executive’s relative level of
      coverage under its material employee benefit, retirement, or fringe
      benefit plans, policies, practices, or arrangements in which Executive
      participates, both in terms of the amount of benefits provided and the
      relative level of Executive’s participation as in effect immediately
      before a Change of Control and with all improvements therein subsequent
      thereto (other than those plans or improvements that have expired
      thereafter in accordance with their original terms), or the taking of any
      action which would materially reduce Executive’s benefits under such plans
      or deprive him of any material fringe benefit enjoyed by him immediately
      before a Change of Control.  For this purpose, the Company may
      eliminate and/or modify existing employee benefit plans and coverage
      levels on a consistent and non-discriminatory basis applicable to all such
      executives; provided, however, that Executive’s level of coverage under
      all such programs must be at least as great as is such coverage provided
      to employees who have the same or lesser levels of reporting
      responsibilities within the
organization.

            

    

    

    
      	
               
      

            	
              e.

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

            

    

    

    
      	
              7.

            	
              Integration;
      Amendment.  This Agreement, the Company’s
      Confidentiality, Non-Solicitation and Covenant Not to Compete Agreement,
      and the Executive’s Individual Stock Agreement (if any) (a copy of which
      are attached to this Agreement) constitute the entire agreement between
      the parties hereto with respect to the matters set forth herein and
      supersede and render of no force and effect all prior understandings and
      agreements between the parties with respect to the matters set forth
      herein.  No amendments or additions to such agreements shall be
      binding unless in writing and signed by both parties, provided, however,
      that this Agreement may be unilaterally amended by the Company where
      necessary to ensure any benefits payable hereunder are either excepted
      from Code Section 409A or otherwise comply with Code Section
      409A.

            

    

    

    
      	
              8.

            	
              Governing
      Law; Headings.  This Agreement and its construction,
      performance and enforceability shall be governed by, and construed in
      accordance with, the laws of the State of New Jersey, without regard to
      its conflicts of law provisions.  Headings and titles herein are
      included solely for convenience and shall not affect, or be used in
      connection with, the interpretation of this
  Agreement.

            

    

    

    
      	
              9.

            	
              Jurisdiction.  Except
      as otherwise provided for herein, each of the parties: (a) irrevocably
      submits to the exclusive jurisdiction of any state court sitting in Bergen
      County, New Jersey or federal court sitting in New Jersey in any action or
      proceeding arising out of or relating to this Agreement; (b) agrees that
      all claims in respect of the action or proceeding may be heard and
      determined in any such court; (c) agrees not to bring any action or
      proceeding arising out of or relating to this Agreement in any other
      court; and (d) waives any right such party may have to a trial by jury
      with respect to any

            

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              action
      or proceeding arising out of or relating to this
      Agreement.  Each of the parties waives any defense of
      inconvenient forum to the maintenance of any action or proceedings so
      brought and waives any bond, surety or other security that might be
      required of any other party with respect thereto.  Any party may
      make service on another party by sending or delivering a copy of the
      process to the party to be served at the address set forth above or such
      updated address as may be provided to the other party. Nothing in this
      Section 8, however, shall affect the right of any party to serve legal
      process in any other manner permitted by
law.

            

    

    

    

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

    

    EXECUTIVE

    

    

    By:   /s/ Peter
Tilles                                                                           

    Peter Tilles

    

    

    PDI, INC.

    

    

    By:   /s/ Nancy
Lurker                                                                           

    Nancy
Lurker

    Chief Executive Officer

    

    
      
         

      

      
        6

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