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Exhibit 10.4  

 
 

2006 SHARE THE VISION AWARD
  CONFIRMATION SHEET    
    

Name:  

Congratulations!
On May 24, 2006, you were granted an award under the Viacom Share the Vision program. 

Your
award consists of stock options. The number of shares of Viacom Inc. Class B common stock, par value $0.001 per share ("Class B Common Stock"), subject to your award is
specified below: 

Stock Option Award

Number of Shares

 

The
stock options granted to you under this award will vest in full on July 23, 2006 (i.e., sixty days after the date of grant). 

The
exercise price of the stock options granted to you under this award is $36.78 per share, the closing price of the Class B Common Stock on the New York Stock Exchange (the "NYSE") on
May 24, 2006 (i.e., the date the stock options were granted to you). The stock options granted to you under this award expire on May 24, 2014. 

After
your stock options vest but before they expire, you may exercise them on any NYSE trading day, subject to the terms and conditions (including any forfeiture and early expiration provisions)
specified in the Viacom Inc. 2006 Long-Term Management Incentive Plan and any other documents relating to your award, and subject to company policies that require preclearance of
trading activity and, for certain individuals, trading within specified window periods. 

 
 

Viacom Inc.
  2006 Long-Term Management Incentive Plan
  Terms and Conditions to the Stock Option Certificate  
    

 
 

ARTICLE I
  TERMS OF STOCK OPTIONS    
    

Section 1.1    Grant
of Stock Options. The Stock Options have been awarded to the Participant subject to the terms and conditions contained in
(A) the confirmation for the May 24, 2006 grant of Stock Options provided to the Participant (the "Stock Option Certificate") and the Terms and Conditions contained herein (collectively,
the "Certificate") and (B) the Plan, the terms of which are hereby incorporated by reference. A copy of the Plan is being provided simultaneously on-line or attached hereto.
Capitalized terms that are not otherwise defined herein have the meanings assigned to them in the Stock Option Certificate or the Plan. The Stock Options are not intended to be, or qualify as,
"Incentive Stock Options" within the meaning of Section 422 of the Code. 

Section 1.2    Terms
of Stock Options. 

        (a)    Vesting.
The Stock Options shall be exercisable only to the extent the Participant is vested therein. Subject to the other terms and
conditions contained in the Certificate and in the Plan, the Stock Options shall vest in four installments of an equal whole number of Stock Options on each of the first, second, third and fourth
anniversary of the Date of Grant (any remaining Stock Options shall vest on whichever of the preceding vesting dates shall be determined by the Company in accordance with its customary procedures). 

        (b)    Option
Period. Except as provided in Section 1.2(c) hereof, the period during which the Stock Options may be exercised shall expire
on the eighth anniversary of the Date of Grant (the "Expiration Date"). If the Participant remains employed by the Company or any of its Subsidiaries through the Expiration Date, his or her
Outstanding Stock Options may be exercised to the extent exercisable until the close of trading (generally 4:00 p.m. New York time) on the last trading day falling within the exercise period on
the New York Stock Exchange or, if different, the principal stock exchange on which the Class B Common Stock is then listed. Thus, if the Expiration Date is not a trading day, then the last day
the Stock Options may be exercised is the last trading day preceding the Expiration Date. 

        (c)    Exercise
in the Event of Termination of Employment, Retirement, Permanent Disability or Death. 

        (i)    Termination
other than for Cause, or due to Retirement, Permanent Disability or Death. Except as otherwise provided in this
Section 1.2 or as otherwise determined by the Committee (including in any applicable employment agreement), in the event of the Participant's termination of employment other than a Termination
for Cause or due to the Participant's Retirement, Permanent Disability or death, the Participant's Outstanding Stock Options can be exercised in accordance with the following provisions: 

        (A)    if
the Participant ceases to be an employee of the Company or any of its Subsidiaries by reason of the voluntary termination by the Participant or the termination by the
Company or any of its Subsidiaries other than a Termination for Cause, his or her Outstanding Stock Options may be exercised to the extent then exercisable until the earlier of six months after the
date of such termination or the Expiration Date; 

        (B)    if
the Participant ceases to be an employee of the Company or any of its Subsidiaries by reason of the Participant's Retirement, the Participant may exercise his or her
Outstanding Stock Options to the extent exercisable on the date of Retirement until the earlier of the third anniversary of such date or the Expiration Date; 

        (C)    if
a Permanent Disability of the Participant occurs, his or her Outstanding Stock Options may be exercised to the extent exercisable upon the date of the onset of such
Permanent Disability until the earlier of the third anniversary of such date or the Expiration Date; and 

        (D)    if
the Participant dies during a period during which his or her Stock Options could have been exercised by him or her, his or her Outstanding Stock Options may be
exercised to the extent exercisable at the date of death by the person who acquired the right to exercise such Stock Options by will or the laws of descent and distribution or permitted transfer until
the earlier of the second anniversary of the date of death or the Expiration Date. 

Except
as otherwise provided in this Section 1.2 or as otherwise determined by the Committee, upon the occurrence of an event described in clauses (A), (B), (C) or (D) of this
Section 1.2(c)(i), all rights with respect to Stock Options that are not vested as of such event will be relinquished. A "termination of employment" occurs, for purposes of the Stock Options,
when a Participant is no longer an employee of the Company or any of its Subsidiaries. Unless the Committee determines otherwise, the employment of a Participant who works for a Subsidiary shall
terminate, for purposes of the Stock Options, on the date on which the Participant's employing company ceases to be a Subsidiary. 

(ii)    Termination
for Cause. If the Participant's employment with the Company or any of its Subsidiaries ends due to a Termination for Cause then, 

unless
the Committee in its discretion determines otherwise, all Outstanding Stock Options, whether or not then vested, shall terminate effective as of the date of such termination. 

(iii)    Exercise
Periods following Termination of Employment, Retirement, Permanent Disability or Death. For the purposes of determining the dates on which
Stock Options may be exercised following a termination of employment or Retirement, Permanent Disability or death, the day following the date of termination of employment or Retirement, Permanent
Disability or death shall be the first day of the exercise period and the Stock Options may be exercised until the close of trading (generally 4:00 p.m. New York time) on the last trading day
falling within the exercise period on the New York Stock Exchange or, if different, the principal stock exchange on which the Class B Common Stock is then listed. Thus, if the last day of the
exercise period is not a trading day, then the last date the Stock Options may be exercised is the last trading day preceding the end of the exercise period. 

Section 1.3    Exercise
of Stock Options. 

        (a)    Whole
or Partial Exercise. The Participant may exercise all vested Outstanding Stock Options granted hereunder in whole at one time or in
part in increments of 100 Stock Options (or in the entire number of Outstanding Stock Options in which the Participant is vested, if such number is less than 100) by notice to the Director, Global
Equity Services, Viacom Inc., 1515 Broadway, New York, New York 10036, or to such agent(s) for the Company ("Agent") as the Company may from time to time specify, in such manner and at such
address as may be specified from time to time by the Company. Such notice shall (i) state the number of whole Stock Options being exercised, and (ii) be signed (or otherwise authorized
in a manner acceptable to the Company) by the person or persons so exercising the Stock Options and, in the event the Stock Options are being exercised (pursuant to
Section 1.2(c)(i) hereof) by any person or persons other than the Participant accompanied by proof satisfactory to the Company's counsel of the right of such person or persons to
exercise the Stock Options. Information concerning any Agent and its address may be obtained by contacting the Director, Global Equity Services. 

        (b)    Payment
of Aggregate Option Price. Full payment of the aggregate Exercise Price (which shall be determined by multiplying the number of
Stock Options being exercised by the Exercise Price as set forth on the Stock Option Certificate) shall be made on or before the settlement date for the shares of Class B Common Stock issued
pursuant to the exercise of the Stock Options. Unless otherwise provided by the Company, such Exercise Price shall be paid in cash (e.g. personal bank check, certified check or official bank check).
In accordance with the rules and procedures established by the Committee for this purpose, the Stock Options may be exercised through a "cashless exercise" procedure, approved by the Committee,
involving a broker or dealer, that affords the Participant the opportunity to sell immediately some or all of the shares underlying the exercised portion of the Stock Options in order to generate
sufficient cash to pay the 

Exercise
Price of the Stock Options. In addition, if the Company so permits, the Exercise Price may be paid in whole or in part using a net share settlement procedure or through the withholding of
shares subject to the Stock Options with a value equal to the Exercise Price. In accordance with Section 4.3 hereof, the Participant shall make an arrangement acceptable to the Company to pay
to the Company an amount sufficient to satisfy the combined federal, state, local or other withholding tax obligations which arise in connection with the exercise of such Stock Options. 

        (c)    Outstanding
Stock Options. The number of shares of Class B Common Stock subject to the Stock Options that is set forth on the Stock
Option Certificate may not reflect the number of Outstanding Stock Options due to Stock Option exercises or adjustments pursuant to Article II. 

 
 

ARTICLE II
  EFFECT OF CERTAIN CORPORATE CHANGES    
    

In
the event of a merger, consolidation, stock split, reverse stock split, dividend, distribution, combination, reclassification, reorganization, split-up, spin-off or
recapitalization that changes the character or amount of the Class B Common Stock or any other changes in the corporate structure, equity securities or capital structure of the Company, the
Committee shall make such adjustments, if any, to the number of shares and kind of securities subject to the Stock Options, and the Exercise Price of the Stock Options, in each case, as it deems
appropriate. The Committee may, in its sole discretion, also make such other adjustments as it deems appropriate in order to preserve the benefits or potential benefits intended to be made available
hereunder. Such determinations by the Committee shall be conclusive and binding on all persons for all purposes. 

 
 

ARTICLE III
  DEFINITIONS    
    

As
used herein, the following terms shall have the following meanings: 

        (a)    "Board"
shall mean the Board of Directors of the Company. 

        (b)    "Certificate"
shall mean the Stock Option Certificate, together with the Terms and Conditions contained herein. 

        (c)    "Class B
Common Stock" shall mean shares of Class B Common Stock, par value $0.001 per share, of the Company. 

        (d)    "Code"
shall mean the U.S. Internal Revenue Code of l986, as amended, including any successor law thereto and the rules and regulations promulgated thereunder. 

        (e)    "Committee"
shall mean the Compensation Committee of the Board (or such other Committee(s) as may be appointed or designated by the Board to administer 

the
Plan). 

        (f)    "Company"
shall mean Viacom Inc., a Delaware corporation. 

        (g)    "Date
of Grant" shall be the date set forth on the Stock Option Certificate. 

        (h)    "Expiration
Date" shall be the date set forth on the Stock Option Certificate and in Section 1.2(b) hereof. 

        (i)    "Exercise
Price" shall be the amount set forth on the Stock Option Certificate, which amount shall be equal to the Fair Market Value of a share of Class B Common
Stock on the Date of Grant. 

        (j)    "Fair
Market Value" of a share of Class B Common Stock on a given date shall be the 4:00 p.m. (New York time) closing price on such date on the New York
Stock Exchange or other principal stock exchange on which the Class B Common Stock is then listed, as reported by The Wall Street Journal (Northeast edition) or as reported by any other
authoritative source selected by the Company. 

        (k)    "Outstanding
Stock Option" shall mean a Stock Option granted to the Participant which has not yet been exercised and which has not yet expired or been terminated in
accordance with its terms. 

        (l)    "Participant"
shall mean the employee named on the Stock Option Certificate. 

        (m)    "Permanent
Disability" shall have the same meaning as such term or a similar term has in the long-term disability policy maintained by the Company or a
Subsidiary thereof for the Participant and that is in effect on the date of the onset of the Participant's Permanent Disability, unless the Committee determines otherwise. 

        (n)    "Plan"
shall mean the Viacom Inc. 2006 Long-Term Management Incentive Plan, as amended from time to time. 

        (o)    "Retirement"
shall mean the resignation or termination of employment after attainment of an age and years of service required for payment of an immediate pension
pursuant to the terms of any qualified defined benefit retirement plan maintained by the Company or a Subsidiary in which the Participant participates; provided, however, that no resignation or
termination prior to a Participant's 60th birthday shall be deemed a retirement unless the Committee so determines in its sole discretion; and provided further that the resignation or termination of
employment other than a Termination for Cause after attainment of age 60 shall be deemed a retirement if the Participant does not participate in a qualified defined benefit retirement plan maintained
by the Company or a Subsidiary. 

        (p)    "Section 409A"
shall mean Section 409A of the Code and the rules, regulations and guidance promulgated thereunder from time to time. 

        (q)    "Stock
Option" shall mean the contractual right granted to the Participant to purchase shares of Class B Common Stock at such time and price, and subject to such
other terms and conditions, as set forth in the Certificate and the Plan. 

        (r)    "Stock
Option Certificate" shall have the meaning set forth in Section 1.1 hereof. 

        (s)    "Subsidiary"
shall mean a corporation (or a partnership or other enterprise) in which the Company owns or controls, directly or indirectly, more than 50% of the
outstanding shares of stock normally entitled to vote for the election of directors (or comparable equity participation and voting power). 

        (t)    "Termination
for Cause" shall mean a termination of employment with the Company or any of its Subsidiaries which, as determined by the Committee, is by reason of
(i) "cause" as such term or a similar term is defined in any employment agreement that is in effect and applicable to the Participant, or (ii) if there is no such employment agreement or
if such employment agreement contains no such term, unless the Committee determines otherwise, the Participant's: (A) dishonesty; (B) conviction of embezzlement, fraud or other conduct
which would constitute a felony; (C) willful unauthorized disclosure of confidential information; (D) failure, neglect of or refusal to substantially perform the duties of the
Participant's employment; or (E) any other act or omission which is a material breach of the Company's policies regarding employment practices or the applicable federal, state and local laws
prohibiting discrimination or which is materially injurious to the financial condition or business reputation of the Company or any Subsidiary thereof. 

 
 

ARTICLE IV
  MISCELLANEOUS    
    

Section 4.1    No
Rights to Awards or Continued Employment. Neither the Certificate, the Plan nor any action taken in accordance with such documents shall
confer upon the Participant any right to be employed by or to continue in the employment of the Company or any Subsidiary, nor to be entitled to any remuneration or benefits not set forth in the Plan
or the Certificate, including the right to receive any future awards under the Plan or any other plan of the Company or any Subsidiary or interfere with or limit the right of the Company or any
Subsidiary to modify the terms of or terminate the Participant's employment at any time for any reason. 

Section 4.2    Restriction
on Transfer. The rights of the Participant with respect to the Stock Options shall be exercisable during the Participant's
lifetime only by the Participant and shall not be transferable by the Participant to whom the Stock Options are granted, except by will or the laws of descent and distribution;
provided that the Committee may permit other transferability, subject to any conditions and limitations that 

it
may, in its sole discretion, impose. 

Section 4.3    Taxes.
As a condition to the exercise of the Stock Options, the Participant shall make a payment in cash equal to the amount of any
federal, state, local and/or other taxes owed as a result of such exercise. In accordance with the rules and procedures established by the Committee for this purpose, the Participant may satisfy such
withholding obligations through a "cashless exercise" procedure as described in Section 1.3(b). In addition, if the Company so permits, the Participant may satisfy such withholding obligations
through a net share settlement procedure or the withholding of shares subject to the applicable Stock Options. 

Section 4.4    Stockholder
Rights. The grant of Stock Options under the Certificate shall not entitle the Participant or a Participant's estate or any
permitted transferee to any rights of a holder of shares of Class B Common Stock, other than when and until the Participant, the Participant's estate or the permitted transferee is registered
on the books and records of the Company as a stockholder and shares are delivered to such party upon exercise of the Stock Options. 

Section 4.5    No
Restriction on Right of Company to Effect Corporate Changes. Neither the Plan nor the Certificate shall affect in any way the right or
power of the Company or its stockholders to make or authorize any or all adjustments, recapitalizations, reorganizations or other changes in the Company's capital structure or its business, or any
merger or consolidation of the Company, or any issue of stock or of options, warrants or rights to purchase stock or of bonds, debentures, preferred or prior preference stocks whose rights are
superior to or affect the Class B Common Stock or the rights thereof or which are convertible into or exchangeable for Class B Common Stock, or the dissolution or liquidation of the
Company, or any sale or transfer of all or any part of its assets or business, or any other corporate act or proceeding, whether of a similar character or otherwise. 

Section 4.6    Section
409A. If any provision of the Certificate contravenes any regulations or Treasury guidance promulgated under Section 409A or
could cause the Participant to recognize income for federal income tax purposes with respect to any Stock Options before such Stock Options are exercised or to be subject to interest and penalties
under Section 409A, such provision of the Certificate shall be modified to maintain, to the maximum extent practicable, the original intent of the applicable provision without violating the
provisions of Section 409A or causing such income recognition or imposition of interest or penalties. Moreover, any discretionary authority that the Board or the Committee may have pursuant to
the Certificate shall not be applicable to Stock Options that are subject to Section 409A to the extent such discretionary authority will contravene Section 409A. 

Section 4.7    Amendment.
The Committee shall have broad authority to amend the Certificate without approval of the Participant to the extent necessary or
desirable (i) to comply with, or take into account changes in, applicable tax laws, securities laws, accounting rules and other applicable laws, rules and regulations or (ii) to ensure
that the 

Participant
does not recognize income for federal income tax purposes with respect to any Stock Options before such Stock Options are exercised and is not subject to interest and penalties under
Section 409A with respect to any Stock Options. 

Section 4.8    Interpretation.
In the event of any conflict between the provisions of the Certificate (including the definitions set forth herein) and
those of the Plan, the provisions of the Plan will control. Additionally, in the event of a conflict or ambiguity between the provisions of the Certificate and the
provisions of any employment agreement that is in effect and applicable to the Participant with respect to the Stock Options, the provisions of such employment agreement shall be deemed controlling to
the extent such provisions are consistent with the provisions of the Plan and are more favorable to the Participant than the provisions of the Certificate. 

Section 4.9    Breach
of Covenants. In the event that the Committee makes a good faith determination that the Participant committed a material breach of
the restrictive covenants relating to non-competition, no solicitation of employees, confidential information or proprietary property in any employment or other agreement applicable to the
Participant during the one year period after termination of the Participant's employment with the Company or a Subsidiary for any reason, the Participant will be required to return any "gain" (as
defined below) realized on the Stock Options during the one year period prior to such breach or at any time after such breach occurs. In addition, if the Committee makes such determination, the
Participant's Outstanding Stock Options will be terminated. The "gain" on the Stock Options shall mean the difference between the Fair Market Value on the date of exercise and the Exercise Price. 

Section 4.10    Governmental
Regulations. The Stock Options shall be subject to all applicable rules and regulations of governmental or other authorities. 

Section 4.11    Headings.
The headings of articles and sections herein are included solely for convenience of reference and shall not affect the meaning
of any of the provisions of the Certificate. 

Section 4.12    Governing
Law. The Certificate and all rights hereunder shall be construed in accordance with and governed by the laws of the State of
Delaware. 

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2006 SHARE THE VISION AWARD CONFIRMATION SHEET

Viacom Inc. 2006 Long-Term Management Incentive Plan Terms and Conditions to the Stock Option Certificate

ARTICLE I TERMS OF STOCK OPTIONS

ARTICLE II EFFECT OF CERTAIN CORPORATE CHANGES

ARTICLE III DEFINITIONS

ARTICLE IV MISCELLANEOUSExhibit 10.19

    Exhibit
      10.19

    

    EMPLOYMENT
      SEPARATION AGREEMENT

    

    Employment
      Separation Agreement (the “Agreement”) effective as of May 11, 2006, 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
      Mr.
      Michael Marquard, residing at 10706 Governors Drive, Chapel Hill, North Carolina
      27517 (the “Executive”), pursuant to which the aforementioned parties
      agree:

    

    1. Employment. In
      connection with the Executive’s acceptance of that certain offer of employment
      letter (the “Offer Letter”) dated May 5, 2006 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
      Chief Executive Officer commencing on or about May 11, 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 either
      instance, the Executive executes and does not revoke the PDI Agreement and
      General Release given to him upon such termination in substantially the form
      annexed to this Agreement as Exhibit A, then: (i) if such termination occurs
      on
      or before May 11, 2007
      the
      Executive shall be paid a lump sum payment equal to (y) the product of twelve
      (12) times his Base Monthly Salary (as defined below), plus (z) any cash
      incentive compensation paid to the Executive during his employment with the
      Company or any unpaid portion of any guaranteed incentive compensation on a
      pro
      rata basis, without regard to any requirements that the Executive be employed
      by
      the Company on any given date in order to be eligible to receive such incentive
      compensation (the “Year 1 Severance Payment”); or
      (ii) if
      such termination occurs
      after May 11, 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, if applicable (the “Subsequent
      Year Severance Payment”). In the event that the Company is obligated to pay the
      Executive either the Year 1 Severance Payment or the Subsequent Year Severance
      Payment (collectively, 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 (the “COBRA Benefit”) for the lesser of (i) twelve (12)
      months in the event that the Company is obligated to pay the Executive the
      Year
      1 Severance Payment or for eighteen (18) months in the event that the Company
      is
      obligated to pay the Executive the Subsequent Year Severance Payment, or (ii)
      until the Executive is eligible for participation in the health insurance plan
      of any successor employer of the Executive. 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. The
      Company shall have no obligation to accelerate the vesting of any equity based
      compensation that may be held by the Executive. 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: (a) as a result of (i) a material reduction in, or the assignment
      of
      duties to the Executive which would be materially inconsistent with, the
      Executive’s responsibilities, duties and authorities as Chief Executive Officer
      of the Company, which continues unremedied for a period of ten (10) business
      days after the Executive has given written notice to the Company of same, (ii)
      a
      material breach by the Company of any of the terms or conditions of this
      Agreement, which continues unremedied for a period of ten (10) business days
      after the Executive has given written notice to the Company of same, (iii)
      a
      reduction in the Executive’s then current annual base salary or failure to pay
      any material amount owing to or to provide a material benefit owing to the
      Executive at the time such amount or benefit is due, which continues unremedied
      for a period of ten (10) business days after the Executive has given written
      notice to the Company of same; or (b) within two years following the occurrence
      of a Change in Control because (i) the Executive suffers an adverse change
      in
      his title or responsibilities, (ii) the Executive suffers a reduction in his
      then current annual base salary (unless such reduction is made in connection
      with a pro rata reduction in the annual base salaries of all of the Company’s
      senior executives); provided,
      however,
      that
      with respect to items (i) and (ii) above, within 30 days of written notice
      by
      the Executive, the Company has not cured such material adverse change or
      reduction, or (iii) the Executive is required to relocate as a result of a
      relocation of the Company’s office location in New Jersey more than 50 miles
      from its current location.

     

    3. Definitions.

     

    a. Cause
      shall
      mean (1) the failure by the Executive to comply with the reasonable instructions
      of the Company’s Board of Directors (the “Board”), provided that such
      instructions are consistent with the Executive’s duties and responsibilities
      hereunder, and which such refusal continues unremedied for a period of ten
      (10)
      business days after the Board has given written notice to the Executive
      specifying in reasonable detail the instructions the Executive has failed to
      comply with; (2) a material breach by the Executive of any of the terms or
      conditions of this Agreement that continues unremedied for a period of ten
      (10)
      business days after the Board has given written notice to the Executive
      specifying in reasonable detail the Executive’s breach of this Agreement; (3)
      the failure by the Executive to adhere to the Company’s documented policies and
      procedures that continues unremedied for a period of ten (10) business days
      after the Board has given written notice to the Executive specifying in
      reasonable detail the Executive’s breach of such policies and/or procedures; (4)
      the failure of the Executive to adhere to moral and ethical business principles
      consistent with the Company’s Code of Conduct as in effect from time to time;
      (5) Executive's conviction of a crime (including 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.

    

    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.

    

    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 Internal Revenue
      Code of 1986, as amended, or a transaction of similar effect, shall not
      constitute a Change of Control.

    

    4.  Integration;
      Amendment.
      This
      Agreement, the Offer Letter 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 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 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.

    

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

    

    

    EXECUTIVE

    

    

    _______/s/
      Michael Marquard____________

    Michael
      Marquard

    

    

     

    PDI,
      INC.

    

    

    By:
      _/s/
      Frank Ryan    

    Frank
      Ryan

    Director,
      Chairman of the Compensation

    and
      Management Development Committee

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