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Exhibit 10.1    
    

March 31,
2008 

Mr. Kenneth
Zuerblis

15 James Trail

Long Valley, NJ 07853 

Dear
Mr. Zuerblis: 

        ImClone
Systems Incorporated ("ImClone Systems" or the "Company") is pleased to offer you the position of Senior Vice President, Chief Financial Officer reporting to John Johnson, Chief
Executive Officer. In this position, you shall be the most senior Finance and investor relations executive at the Company and shall be responsible for all financial and investor relations functions of
the Company and for the preparation of all financial reports of the Company. The following will summarize the terms and conditions of this offer: 

	Compensation:	 	Your bi-weekly base salary (annualized at $375,000) will be $14,423.08.
	

Equity:	
 	

Participation in ImClone Systems' 2006 Stock Incentive Plan (the "Plan") with a grant to you of 80,000 stock options vesting equally over four (4) years (the "Options"). The exercise term of the Options will be ten (10) years from the grant
date, unless sooner forfeited pursuant to the terms of the Plan. Pursuant to the Plan, the exercise price of the Options is determined by the closing price of the stock on the date your employment commences with the Company. The Options will be
Non-Qualified Stock Options.
	

 	
 	

Your grant will be in accordance with the Plan, including the change in control provision in Article XI of the Plan. Except as otherwise provided herein, the options shall be governed by the terms of the Plan.
	

Annual Bonus:	
 	

You are eligible to receive an annualized bonus for 2008. The current target bonus range for your position is 38 to 43 percent. Bonuses are granted at the discretion of the Board of Directors and are based on factors that include, but are not
limited to, the financial performance of the Company, as well as the performance of the individual employee.
	

Benefits:	
 	

You are eligible to participate in ImClone Systems' comprehensive health plan including major medical, hospitalization, dental and vision insurance through the Company's health insurance provider, which at this time is Aetna.
	

 	
 	

Short-term and Long-term Disability insurance.
	

 	
 	

Life Insurance in the amount of two-times your annual salary, up to a maximum of $400,000. You may purchase up to five-times your annual salary, to a maximum of $500,000 by participating in our Voluntary Life Insurance program.
	

 	
 	

You are eligible to participate in the 401(k) Employee Savings Plan.
	

 	
 	

You are eligible to participate in the Employee Stock Purchase Plan (ESPP).
	

 	
 	

One-hundred sixty (160) hours of vacation time, subject to the terms and conditions of ImClone Systems' Vacation Policy.

	

Termination of Employment by the Company without Cause:	
 	

If your employment is terminated by the Company without Cause, whether or not such termination occurs before or after a Change in Control (as defined in the Plan), your employment shall end as of the date of such termination and you shall be entitled
to the following, subject to the condition that you shall execute a waiver and release substantially in the form attached hereto as Schedule A. Such release shall be executed and delivered to the
Company within thirty (30) days of the date of the applicable date of termination.
	

 	
 	

a)	
 	

any amounts earned, accrued or owing to you but not yet paid under any employee welfare and pension benefit plans, programs and/or arrangements applicable to the Company's senior-level executives generally upon the terms and conditions, as modified
from time to time, of such plans, programs and arrangements (and the plans, programs or policies referred to therein), payable at the time set forth in the relevant plan, program or policy;
	

 	
 	

b)	
 	

a pro rata annual cash bonus award for the year of termination, based on actual results, payable in the following calendar year at the time bonuses are paid to similarly situated senior-level executives generally;
	

 	
 	

c)	
 	

your annual base salary, at the rate in effect on the date of termination (without giving effect to any decrease in such rate which has given rise to Good Reason), payable in installments for a period of 12 months, commencing (subject to the
provisos below) on the first regular payroll date after the date of termination in accordance with the Company's regular payroll practices applicable to payment of salaries, provided that no amounts shall be due prior to the effective date of the
release described above and the first installment thereafter shall include all payments that would otherwise have been made prior to the effective date of the release; and provided further that payments pursuant to this section shall be subject to
delay in accordance with all applicable provisions of section 409A of the Internal Revenue Code of 1986 as amended, and the regulations issued there under, and the rulings, notices and other guidance issued by the Internal Revenue Services
interpreting the same;
	

 	
 	

d)	
 	

full and immediate vesting of the equity grant described above, which shall remain exercisable for ninety (90) days after the date of termination;
	

 	
 	

e)	
 	

provided you timely elect COBRA health continuation coverage and timely pay the amount payable by similarly situated active senior-level employees, the Company shall continue to provide medical coverage for you and your eligible dependents until the
earliest of (x) one (1) year from your termination, (y) your (or the eligible dependent) ceasing to be eligible for COBRA coverage) or (z) you commence employment with an employer who maintains a medical plan.

	

Termination of Employment by you for Good Reason:	
 	

You may terminate your employment for Good Reason, whether or not such termination occurs before or after a Change in Control (as defined in the Plan), provided that the actual date of the termination of your employment occurs during the 75-day
period immediately following the date that the events or actions constituting Good Reason first become known to you. Upon a termination by you of your employment for Good Reason, your employment shall end as of the date of such termination and you
shall be entitled to the same payments and benefits as provided above for termination by the Company without Cause. In no event shall a termination of your employment for Good Reason occur unless you give written notice to the Company stating with
reasonable specificity the events or actions that constitute Good Reason within 45 days of their occurrence and providing the Company with an opportunity to cure (if curable) within 30 days.
	

Termination of Employment Due to Disability:	
 	

The Company may terminate your employment due to Disability by written notice to you. In such event, your employment shall end as of the date of the termination specified in such notice, and you shall be entitled to the following:
	

 	
 	

a)	
 	

your base salary that has been earned but not paid through the date of termination, payable within 15 days of the date of termination;
	

 	
 	

b)	
 	

any incentive compensation earned for a fiscal year ending prior to the date of termination, payable when such compensation is otherwise paid to other senior executives generally in the calendar year of termination; and
	

 	
 	

c)	
 	

any amounts earned, accrued or owing to you but not yet paid under all employee welfare and pension benefit plans, programs and/or arrangements applicable to the Company's senior-level executives generally, payable at the time set forth in the
relevant plan, program and/or arrangement.
	

Termination of Employment Due to Death:	
 	

In the event of your death during the term of employment, your employment shall end as of the date of your death and your estate and/or beneficiaries, as the case may be, shall be entitled to the same benefits that are set forth in the section above
called "Termination of Employment Due to Disability."

        "Cause"
shall mean (i) your indictment for, or a conviction of, or a plea of nolo contendere to, a felony, any crime under the federal or state securities laws or regulations, or
a misdemeanor involving moral turpitude; or (ii) your willful misconduct or gross negligence in the performance of your duties hereunder; or (iii) your willful failure to attempt in good
faith to perform your duties hereunder, or your willful failure to attempt in good faith to carry out the legal directions of the Chief Executive Officer promptly and continuously, in either case
after written notice of such failure; or (iv) fraud, embezzlement, theft or dishonesty by you against the Company or any subsidiary; or (v) any act of willful misconduct by you bringing
harm, or in the good faith judgment of the Company's Board of Directors, likely to bring harm to the Company or any subsidiary (economically or as to reputation); or (vi) your violation of a
written policy or procedure of the Company or any subsidiary of a material nature, as determined in the good faith judgment of the Company's Board of Directors; or (vii) a
mis-representation by you of your credentials or experience; or (viii) your material breach of any 

provision
of this letter that is not cured (if capable of being cured) within 10 days of your being given written notice from the Company specifying such breach. 

        "Disability"
shall mean your inability, due to physical or mental incapacity, to substantially perform your duties and responsibilities under this letter for a period of (i) 6
consecutive months or (ii) 180 days in any 12-month period, as determined in the good faith judgment of the Company's Board of Directors. 

        "Good
Reason" shall mean, without your prior written consent, the occurrence of any of the following events or actions within the 30-day period preceding a notice of
termination of employment delivered to the Company by you: (i) a reduction of your base salary or target bonus as a percentage of base salary, except due to an across the board reduction
applicable to similarly situated senior-level executives generally; (ii) a material breach by the Company of this letter agreement; (iii) a material diminution in your titles, authority,
duties or responsibilities as the most senior Finance and investor relations executive at the Company, responsible for all financial and investor relations functions of the Company and for the
preparation of all financial reports of the Company, provided this shall not be deemed to have occurred as long as you remain in actual practice the Company's most senior Finance and Investor
Relations executive; (iv) a change in the reporting structure so that you report to someone other than solely to the Chief Executive Officer (or reasonably comparable position or title); or;
v) the Company requires you to relocate your office a distance of greater than sixty (60) miles from its current Branchburg, New Jersey location. 

        During
your employment and thereafter, the Company shall (i) indemnify and hold you and your heirs and representatives harmless to the extent permitted in the Company's
by-laws in effect from time to time to the same extent as other senior level executives and other directors receive from the Company, and (ii) cover you under directors and officers
insurance policies maintained by the Company, if any, for its other officers and directors. 

        This
offer is contingent upon the satisfactory completion of ImClone Systems' background check including, but not limited to, your references, verification of past employment, education
verification and criminal record background check. You will receive an E-mail from ImClone Systems asking you to complete the questionnaire so that we may conduct the background check. In
addition to completing the background check, you will need to sign and return one copy of this letter in the envelope provided, or by faxing to (908) 704-1772, within five
(5) business days of receipt. 

        This
letter shall be governed by the laws of the State of New Jersey, without regard to its choice of law principles. 

        Your
starting date will be March 31, 2008. Please contact me at (908) 541-8009 if you have any questions. We look forward to the exciting progress and success
in the years ahead for both you and the Company. 

	

Sincerely,	
 	

Agreed & Accepted By:
	

/s/  DAVID M. SCHLOSS      	
 	

/s/  KENNETH ZURBLIS      	
 	

3/31/08
	
 David M. Schloss	 	
 Kenneth Zurblis	 	
 Date
	Vice President, Human Resources	 	 	 	 

DMS/clg

Enclosures

 

 
 

SCHEDULE A    
    

 
  RELEASE    
    

        This RELEASE ("Release") dated as of
this                                    day between ImClone Systems
Incorporated, a Delaware corporation (the "Company"), and Kenneth Zuerblis
(the "Executive"). 

        WHEREAS,
the Executive's employment with the Company (has been) (will be) terminated effective                        ; and 

        WHEREAS,
the Executive is entitled to certain compensation and benefits upon such termination, contingent upon the execution of this Release; 

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

        1.     Subject
to Paragraphs 2 and 3 below, the Executive, on his own behalf and on behalf of his heirs, estate and beneficiaries, does hereby release the Company, and
any of its Subsidiaries or affiliates, and, in their respective capacities as such, each past or present officer, director, agent, employee shareholder and insurer of any such entities, from any and
all claims made, to be made, or which might have been made of whatever nature, whether known or unknown, from the beginning of time, including those that arose as a consequence of or related to his
employment with the Company, or arising out of or relating to the severance of such employment relationship, or arising out of or related to any act committed or omitted during or after the existence
of such employment relationship, all up through and including the date on which this Release is executed, which shall not be earlier than the date of the Executive's termination of employment, but not
limited to, those which were, could have been or could be the subject of an administrative or judicial proceeding filed by the Executive or on his behalf under federal, state or local law, whether by
statute, regulation, in contract or tort, and including but not limited to, every claim for front pay, back pay, wages, bonus, fringe benefit, any form of discrimination (including but not limited to,
every claim of race, color, sex, religion, national origin, disability or age discrimination), wrongful termination, emotional distress, pain and suffering, breach of contract or compensatory or
punitive damages, interest, attorney's fees, reinstatement or reemployment, and claims under Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, the Age Discrimination in
Employment Act ("ADEA"), the Older Workers Benefit Protection Act ("OWBPA"), the Americans with Disabilities Act, the Employment Retirement Income Security Act of 1974, the Family and Medical Leave
Act, the Equal Pay Act, the Worker Adjustment and Retraining Notification Act, the National Labor Relations Act, the Fair Labor Standards Act, the Sarbanes-Oxley Act of 2002, each and every state or
local variation of these federal laws including without limitation the New York State Human Rights Law, the New York City Human Rights Law, the New York Labor Law, the New York Civil Rights Law, the
Delaware Employment Discrimination Law, the New Jersey Law Against Discrimination, the New Jersey Conscientious Employee Protection Act, the New Jersey Equal Pay Act, and the New Jersey Family Leave
Act, all as amended, and any and all other applicable federal, state, and local fair employment practices laws, individual or constitutional rights, and wage or discrimination laws (statutory or
decisional). If any court rules that such waiver of rights to file, or have filed on his behalf, any administrative or judicial charges or complaints is ineffective, the Executive agrees not to seek
or accept any money damages or any other relief upon the filing of any such administrative or judicial charges or complaints. The Executive relinquishes any right to future employment with the Company
and the Company shall have the right to refuse to re-employ the Executive without liability. The Executive acknowledges and agrees that even though claims and facts in addition to those
now known or believed by him to exist may subsequently be discovered, it is his intention to fully settle and release all such claims he may have against the Company and the persons and entities
described above, whether known, unknown or suspected. 

        2.     The
Company acknowledges and agrees that the release contained in Paragraph 1 does not, and shall not be construed to, release or limit the scope of any
(i) obligation of the Company to indemnify the Executive for his acts as an officer or director of Company in accordance with the bylaws of Company and the policies and procedures of Company,
or pursuant to any directors and officers 

liability
insurance policy, (ii) obligation of the Company under any existing welfare, retirement, fringe-benefit or other plan or program of the Company in which the Executive and/or such
dependents are participants or obligation of the Company to pay severance or other payments and benefits to Executive subsequent to the termination of Executive's employment with the Company under any
agreement, plan or program, and (iii) any right the Executive may have to enforce this Agreement. Additionally, by executing this Agreement, Executive is not waiving any claim that may not be
released by law, or Executive's right to file a charge with or participate in any investigation or proceeding conducted by the U.S. Equal Employment Opportunity Commission or other government
agency, except that even if Executive files a charge or participates in such an investigation or proceeding, Executive will not be able to recover damages or equitable relief of any kind from
the Company or other parties released pursuant to Paragraph 1. 

        3.     The
Executive acknowledges that he has been provided at least 21 days to review the Release and has been advised to review it with an attorney of his choice. In
the event the Executive elects to sign this Release prior to this 21 day period, he agrees that it is a knowing and voluntary waiver of his right to wait the full 21 days. The Executive
further understands that he has 7 days after the signing hereof to revoke it by so notifying the Company in writing, such notice to be received
by                within the 7-day
period. The Executive further acknowledges that he has carefully read this Release, and knows and understands its contents and its binding legal effect. The Executive acknowledges that by signing this
Release, he does so of his own free will and act and that it is his intention that he be legally bound by its terms. 

        IN
WITNESS WHEREOF, the parties have executed this Release on the date first above written. 

	 	 	IMCLONE SYSTEMS INCORPORATED
	

 	
 	
By:	

 Name:

Title:
	

 	
 	

 	

 Kenneth Zuerblis

QuickLinks

Exhibit 10.1

SCHEDULE A

RELEASEexhibit1017.htm

    EMPLOYMENT SEPARATION
AGREEMENT

    

    This
Employment Separation Agreement (the “Agreement”) is effective as of September
1, 2007, 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 Kevin Connolly (the “Executive”), pursuant to which the
aforementioned parties agree:

    

    
      	
              1.

            	
              Employment.

            	
              In
      connection with the Executive’s continued employment, the Company shall
      employ the Executive as President, Diversified Marketing Services,
      Executive Vice President 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.

            	
              Executive
      executes within the time frame required by the Company an Agreement and
      General Release in substantially the form attached to this Agreement, or
      in such form as may be provided by the Company, and does not revoke such
      Agreement and General Release.

            

    

    

    
      	
               
      

            	
              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, as applicable), subject to withholding for applicable
      federal, state, and local income and employment related
      taxes.  Subject to paragraph (c) below, such payment shall be
      made within thirty (30) days after the Agreement and General Release
      becomes irrevocable.

            

    

    

    
      	
               
      

            	
              ii.

            	
              The
      Company will reimburse Executive for the cost of the premiums for COBRA
      group health continuation coverage paid by Executive for coverage during
      the period beginning following Executive’s termination date and ending on
      the earlier of either:  (A) one (1) year following 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.

            

    

    

    
      	
               
      

            	
              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 Executive” 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.

            

    

    

    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 earned, but
      unpaid, base salary and reimburse Executive for any accrued, but unpaid,
      reasonable business expenses, in each case, earned or accrued as of the
      date of termination.

            

    

    

    
      	
              4.

            	
              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).

            

    

    

    5.           Definitions.

    

    
      	
               
      

            	
              a.

            	
              Cause
      shall mean: (i) the material 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
      material 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; (iii) the failure by
      Executive to adhere to the Company’s documented material policies and
      material 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 material
      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); (vi) any documented act of material dishonesty or
      fraud by the Executive in the commission of his 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 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.  Termination of employment by Executive for Good
      Reason shall be deemed to have occurred, if he provides written notice of
      termination to PDI within ninety (90) days after he becomes aware of the
      occurrence of any of the following, and the Company has failed to cure
      such action or inaction within thirty (30) days of the written notice by
      Executive:

            

    

    

    
      	
               
      

            	
              i.

            	
              Prior
      to a Change in Control,

            

    

    

    
      	
               
      

            	
              A.

            	
              The
      failure by the Company to pay Executive any material amount of his current
      salary, or any material amount of his compensation deferred under any
      plan, agreement or arrangement of or with the Company that is currently
      due and payable, within thirty (30) days after Executive makes written
      demand for such amount;

            

    

    

    
      	
               
      

            	
              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 in
  Control,

            

    

    

    
      	
               
      

            	
              A.

            	
              The
      failure by the Company to pay Executive any material amount of his current
      salary, or any material amount of his compensation deferred under any
      plan, agreement or arrangement of or with the Company that is currently
      due and payable, within thirty (30) days after Executive makes written
      demand for such amount;

            

    

    

    
      	
               
      

            	
              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;

            

    

    

    
      	
               
      

            	
              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 in
      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
      failure of the Company to maintain Executive’s relative level of coverage
      under its employee benefit, retirement, or material 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 in
      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 any of such plans or deprive
      him of any material fringe benefit enjoyed by him immediately before a
      Change in 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.

            

    

    

    
      	
              6.

            	
              Integration;
      Amendment.  This Agreement, the Company’s
      Confidentiality, Non-Solicitation and Covenant Not to Compete Agreement,
      and the Executive’s Individual Stock Agreement (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.

            

    

    

    
      	
              7.

            	
              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.

            

    

    

    
      	
              8.

            	
              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 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 Employment Separation Agreement as of the date first
above written.

    

    EXECUTIVE

    

    

    By: /s/  Kevin
Connolly                                                                                     

    Kevin Connolly

    

    

    PDI, INC.

    

    

    By: /s/  Michael J.
Marquard                                                                           

    Michael J. Marquard

    Chief Executive Officer

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