Document:

Exhibit 10.20

    Exhibit
      10.20

    EMPLOYMENT
      SEPARATION AGREEMENT

    

    

    

    PDI,
      Inc., a Delaware corporation (the “Company”), having its principal place of
      business at 1 Route 17 South, Saddle River, New Jersey 07458, and Mr. Jeffrey
      E.
      Smith, residing at 6 Bradson Court, Westfield, New Jersey 07090 (the
“Executive”), agree:

    

    1. Employment. In
      connection with the Executive’s acceptance of that certain offer of employment
      letter dated May 5, 2006 and contingent upon the Executive’s appointment by the
      Company’s Board of Directors (the “Board”), the Company shall employ the
      Executive as Executive Vice President, Chief Financial Officer and Treasurer
      commencing on or about May 15, 2006 which employment shall terminate upon notice
      by either party, for any reason. Executive
      understands and agrees that his 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 agreement to execute the PDI
      Confidentiality, Non-Solicitation and Covenant Not to Compete Agreement (the
      “Confidentiality Agreement”), the Company agrees that if it terminates the
      Executive’s employment without Cause (as defined below) or if the Executive
      terminates his employment as provided for in Section 2b. hereof, and, in each
      instance, the Executive executes and does not revoke the PDI Agreement and
      General Release given to him upon such termination, then: 

    	i.  	
            If
              the Executive terminates his employment before May
              15, 2007,
              the Executive shall be paid a lump sum payment equal to (y) the product
              of
              twelve (12) times his Base Monthly Salary, plus (z) the average annual
              cash incentive compensation paid to the Executive during the three
              years
              immedi-ately preceding the termination date, or such shorter period
              if
              applicable. For purposes of the average calculation, any amount paid
              for
              2006 will be annualized. The sum of (y) and (z) is referred to herein
              as
              the “Severance Payment”. 

          

    	ii.  	
            If
              such termination occurs
              after May 15, 2007
              the Executive shall be paid a lump sum payment equal to (y) the product
              of
              eighteen (18) times his Base Monthly Salary, plus (z) the average cash
              incentive compensation paid to the Executive during the most recent
              three
              years immedi-ately preceding the termination date for which such incentive
              compensation was paid, or such shorter period, For purposes of the
              average
              calculation, any amount paid for 2006 will be annualized. The sum of
              (y)
              and (z) is referred to herein as the “Severance Payment”.
              

          

    

    In
      the
      event that the Company is obligated to pay the Executive the Severance Payment,
      in addition to such payment the Company shall pay for the continuation of the
      Executive’s health and welfare benefits under COBRA for up to twelve (12) months
      (the “COBRA Benefit”). If the Executive becomes employed by a third party and is
      entitled to comparable health and welfare benefits then the Company is entitled
      to discontinue the COBRA Benefit. 

    All
      payments due hereunder shall be subject to withholding for applicable federal,
      state and local income and employment related taxes. In the event of any
      termination of the Executive’s employment with the Company, the Executive shall
      continue to be bound by the confidentiality, non-solicitation, non-competition
      and other provisions set forth in the Confidentiality Agreement for the periods
      set forth therein. No termination benefits will be paid if the Executive resigns
      or terminates his employment for any reason other than as set forth in Section
      2b. below or if the Company terminates the Executive’s employment for Cause (as
      defined below) as determined by the Board (or a committee of the
      Board).

    

    b. Subject
      to the terms and conditions set forth in Section 2a. above, the Executive shall
      be entitled to the Severance Payment and the COBRA Benefit if he terminates
      his
      employment with the Company because (i) the Executive suffers a substantial
      adverse change in his title or responsibilities (for the avoidance of doubt,
      this would include the Executive no longer being the CFO of the publicly traded
      Company, no matter what the reason), or (ii) the Executive suffers a reduction
      in his annual base salary, or (iii) if the Company modifies the Executive’s
      overall compensation plan in a manner that materially reduces the Executive’s
      earning potential, or (iv) if the Company relocates it’s principal place of
      business more than 50 miles from the Executives current residence; provided,
      however,
      that
      with respect to items (i), (ii) and (iii) above, within thirty (30) days of
      written notice by the Executive, the Company has not cured, or commenced to
      cure, such substantial adverse change or reduction.

     

    

    3. Definitions.

     

    a. Cause
      shall
      mean (1) despite adequate warnings, the failure by the Executive to
      satisfactorily perform the duties and responsibilities of the position held
      for
      any reason other than total or partial incapacity due to physical or mental
      illness; (2) the failure to adhere to generally accepted standards of conduct
      in
      the workplace and/or the Company’s policies and procedures; (3) the failure to
      adhere to moral and ethical business principles; (4) Executive's conviction
      of a
      crime (including entry of a nolo
      contendere
      plea);
      or (5) any act of dishonesty in the commission of his duties. 

    

    b. Base
      Monthly Salary
      shall
      mean an amount equal to one-twelfth of the 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.

    

    

    4.  Integration;
      Amendment.
      This
      Agreement and the Confidentiality 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 this Agreement or the Confidentiality Agreement
      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 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 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 6, however, shall affect the right of
      any
      party to serve legal process in any other manner permitted by law.

    

    	7.  	
             Assignment.
              This
              Agreement may and shall be assigned or transferred to, and be binding
              

          

    upon
      and
      hall inure to the benefit of any Successor Company (any company that acquires
      50% or more of the Company or is the surviving entity in the event of a
      acquisition, merger, combination or similar transaction).

    

    

    

    

    

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

    EXECUTIVE

    

    ___/s/
      Jeffrey E. Smith_______________________

    Jeffrey
      E. Smith

    

    

    PDI,
      INC.

    

    

    By:
      _/s/
      Nancy McCarthy_____________________

    Nancy
      McCarthy

    Executive
      Vice President, Human ResourcesExhibit 10.21

    Exhibit
      10.21

    

    AGREEMENT
      AND GENERAL RELEASE

    PDI,
      Inc.
      (referred to throughout this Agreement as “Employer”), and Larry Ellberger
      (referred to throughout this Agreement as “Employee”), agree that:

    

    1.  Last
      Day of Employment.
      Employee's last day of employment with Employer is August 4, 2006.

     

    a.  Consideration.
      In
      consideration for signing this Agreement and compliance with the promises made
      herein, Employer agrees to pay to Employee $125,000.00, less lawful deductions,
      to be paid in a lump sum payment on the six month anniversary of the Effective
      Date of this Agreement (discussed below in paragraph “3” below) and Employee’s
      fulfillment of the promises contained herein, or such later date as required
      to
      conform with Internal Revenue Code Section 409(A), if applicable.

     

    2.  No
      Consideration Absent Execution of this Agreement.
      Employee
      understands and agrees that Employee would not receive the monies and/or
      benefits specified in paragraph “1(a)” above, except for Employee’s execution of
      this Agreement and the fulfillment of the promises contained herein.

     

    3.  Revocation.
      Employee
      may revoke this Agreement for a period of seven (7) calendar days following
      the
      day Employee executes this Agreement. Any revocation within this period must
      be
      submitted, in writing, to Nancy McCarthy, Executive Vice President of Human
      Resources and state, "I hereby revoke my acceptance of our Agreement and General
      Release." The revocation must be personally delivered to Nancy McCarthy,
      Executive Vice President of Human Resources or Employer’s designee, or mailed to
      Nancy McCarthy, Executive Vice President of Human Resources at PDI, Inc., Saddle
      River Executive Centre, One Route 17 South, Saddle River, New Jersey, 07458
      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 (hereinafter “the Effective Date”). If the last day of the
      revocation period is a Saturday, Sunday, or 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 in New Jersey.

     

    4.  General
      Release of Claim.
      Employee, Employee’s heirs, executors, administrators, fiduciaries, successors
      and/or assigns, knowingly and voluntarily release and forever give up, to the
      full extent permitted by law, Employer, Employer's past, present and future
      direct or indirect parent organizations, subsidiaries, divisions, affiliated
      entities, and its and their partners, officers, directors, trustees,
      administrators, 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, 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 Safety 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 Civil Rights Act;

    ● 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 Safety 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 Safety 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 law, 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 pay, short term or long
                term
                disability benefits, or payment pursuant to any practice, policy,
                handbook
                or manual; or

            

    

    ●
      any
      basis for costs, fees, or other expenses including attorneys’ fees.

    

    Employee
      understands this Release includes all claims related in any manner to Employee’s
      employment or the cessation of that employment. Employee further understands
      that Employee is hereby releasing any known or unknown claim for alleged right
      to discovery of information or documents of Released Parties. Notwithstanding
      the foregoing, nothing herein shall affect the Employee’s right to coverage, if
      such coverage is otherwise available, under the Employer’s Directors’ and
      Officers’ insurance policies (to the extent that such policies are then in
      effect). 

    

    5.  Affirmations.
      Employee
      affirms that Employee is not a party to, and that Employee has not filed or
      caused to be filed, any claim, complaint, charge or action against Released
      Parties in any forum or form. Employee further affirms that Employee has been
      paid and/or has received all leave (paid or unpaid), compensation, wages,
      bonuses, commissions, and/or benefits to which Employee may be entitled and
      that
      no other leave (paid or unpaid), compensation, wages, bonuses, commissions
      and/or benefits are due to Employee, except as provided in this Agreement.
      Employee furthermore affirms that Employee has no known workplace injuries
      or
      occupational diseases and has been provided and/or has not been denied any
      leave
      requested under the Family and Medical Leave Act and/or any other federal,
      state
      or local leave law, including the New Jersey Family Leave Act. Employee further
      affirms Employee
      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. 

     

    6.  Confidentiality.
      To the
      extent permitted by law, Employee agrees not to disclose any information
      regarding the existence or substance of this Agreement, except to Employee’s
      spouse, tax advisor, or an attorney with whom Employee chooses to consult
      regarding Employee’s consideration of this Agreement, each of whom shall
      likewise agree to keep the information confidential. In the event Employee
      or
      Employee’s counsel believe either is compelled to provide or disclose
      information described in this paragraph, they will provide written notice of
      such belief, via facsimile and mail, to Nancy McCarthy, Executive Vice President
      of Human Resources, PDI, Inc., Saddle River Executive Centre, One Route 17
      South, Saddle River, New Jersey, 07458. Fax number - (201) 258-8445, no later
      than seven (7) business days prior to said production or disclosure. This
      Agreement shall not be filed with any court and shall remain forever
      confidential except in an action to enforce or for breach of this Agreement.
      If
      Employee asserts an action to enforce this Agreement or for breach of this
      Agreement, Employee shall maintain such confidentiality by whatever means
      necessary, including, but not limited to, submitting the Agreement to a court
      under confidential seal. 

     

    7.  Governing
      Law and Interpretation.
      This
      Agreement shall be governed and conformed in accordance with the laws of the
      State of New Jersey without regard to its conflict of laws provisions. In the
      event Employee or Employer breaches any provision of this Agreement, Employee
      and Employer affirm that either may institute an action against the other to
      specifically enforce any term or terms of this Agreement, in addition to any
      other legal or equitable relief permitted by law. In the event that any
      provision of this Agreement is declared illegal or unenforceable by a court
      of
      competent jurisdiction and cannot be modified to be enforceable, excluding
      the
      general release language, such provision shall immediately become null and
      void,
      leaving the remainder of this Agreement in full force and effect. Moreover,
      if
      any such provision determined to be invalid, illegal or unenforceable and can
      be
      made valid, legal or enforceable by modification thereof, then the party for
      whose benefit the provision exists, may make such modification as necessary
      to
      make the provision valid, legal and enforceable.

     

    8.  Non
      Disparagement. Employee
      agrees not to defame, disparage or demean Employer in any manner whatsoever.
      Employer agrees, on behalf of its Executive Officers (defined herein as any
      officer of Employer whose title is Executive Vice President or higher) and
      its
      directors, not to defame, disparage or demean Employee in any manner
      whatsoever.

     

    9.  Cooperation.
      Subject
      to Employee’s other personal and professional obligations and on reasonable
      notice and at reasonable times, Employee will, without further consideration,
      cooperate with Employer and its counsel in connection with any investigation,
      administrative or regulatory proceeding or litigation relating to any matter
      in
      which Employee was involved or of which Employee has knowledge as a result
      of
      Employee’s employment with Employer and/or any Released Party or Released
      Parties. Further, Employee shall, without further consideration, provide
      Employer with such transitional services and assistance as may be reasonably
      requested by the Chief Executive Officer of Employer.

     

    10.  Return
      of Property.
      Employee
      agrees, within seven (7) calendar days from the date of this Agreement, to
      return any and all property, including all copies or duplicates thereof,
      belonging to Released Parties, including, but not limited to, PDI owned or
      leased automobile, computer equipment, keys, security cards, equipment,
      documents, supplies, customer lists and customer information, confidential
      documents, etc. With the return of Released Parties' materials, Employee shall
      submit a letter (or an e-mail) to Nancy McCarthy at PDI, Inc., Saddle River
      Executive Centre, One Route 17 South, Saddle River, New Jersey, 07458, affirming
      that Employee has returned all property and copies and has not retained any
      property belonging to Released Parties.

     

    11.  
      Nonadmission of Wrongdoing.
      Employee
      agrees that neither this Agreement nor the furnishing of the consideration
      for
      this Agreement shall be deemed or construed at anytime for any purpose as an
      admission by Employer of any liability or unlawful conduct of any
      kind.

     

    12.  Amendment.
      This
      Agreement may not be modified, altered or changed except upon express written
      consent of both parties wherein specific reference is made to this
      Agreement.

     

    13.  Entire
      Agreement.
      This
      Agreement sets forth the entire agreement between the Employee and Released
      Parties hereto, and fully supersedes any prior or contemporaneous agreements
      or
      understandings between Employee and Released Parties; provided, however, that
      (a) this Agreement does not supercede or affect any confidentiality,
      non-disclosure, non-compete, invention, assignment of proprietary rights or
      non-solicitation agreement(s) signed by Employee, which shall remain in full
      force and effect as provided for therein and Employee expressly acknowledges
      Employee's intent to adhere to the promises contained in those agreements,
      and
      (b) the stock option agreements covering the options previously issued to
      Employee as a result of his service on Employer’s Board of Directors, which
      shall fully vest upon the Effective Date of this Agreement and shall remain
      exercisable for three (3) years following the Effective Date of this Agreement.
      Employee also acknowledges that Employee has not relied on any representation,
      promises, or agreements of any kind made in connection with the decision to
      sign
      this Agreement, except for those set forth in this Agreement. 

     

    EMPLOYEE
      IS HEREBY ADVISED THAT EMPLOYEE HAS UP TO TWENTY-ONE (21) CALENDAR DAYS TO
      REVIEW THIS AGREEMENT AND GENERAL RELEASE AND IS HEREBY ADVISED TO CONSULT
      WITH
      AN ATTORNEY PRIOR TO EXECUTION OF THIS AGREEMENT AND GENERAL RELEASE.

     

    

    EMPLOYEE
      IS ADVISED THAT ANY MODIFICATIONS, MATERIAL OR OTHERWISE, MADE TO THIS AGREEMENT
      AND GENERAL RELEASE DO NOT RESTART OR AFFECT IN ANY MANNER THE ORIGINAL
      TWENTY-ONE (21) CALENDAR DAY CONSIDERATION PERIOD. 

    

    HAVING
      ELECTED TO EXECUTE THIS AGREEMENT AND GENERAL RELEASE, TO FULFILL THE PROMISES
      AND TO RECEIVE THE SUMS AND BENEFITS IN PARAGRAPH "1" ABOVE, EMPLOYEE FREELY
      AND
      KNOWINGLY, AND AFTER DUE CONSIDERATION, ENTERS INTO THIS AGREEMENT AND GENERAL
      RELEASE INTENDING TO WAIVE, SETTLE AND RELEASE ALL CLAIMS EMPLOYEE HAS OR MIGHT
      HAVE AGAINST RELEASED PARTIES AS OF THE DATE OF THE EXECUTION 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:

    

    

    /s/
      Larry Ellberger 

    Larry
      Ellberger

    

    Dated:
      July 31, 2006

    

    

    PDI,
      INC.

    

    By:
      /s/
      Nancy McCarthy

    Nancy
      McCarthy

    Executive
      Vice President of Human 

    Resources

    

    Dated:
      July 31, 2006

    

    

    

    

      

      
        1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00108-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00108-of-00352.parquet"}]]