EMPLOYMENT SEPARATION
AGREEMENT
This Employment Separation Agreement (the
“Agreement”) is effective as of February 2, 2009, 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 Richard P.
Micali, residing at (the “Executive”),
pursuant to which the aforementioned parties agree:
|
|
|
In connection
with the Executive’s continued employment, the Company shall
employ the Executive as Senior Vice President – Sales
Services 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.
|
|
|
Compensation and Benefits Payable Upon
Involuntary Termination without Cause or Resignation for Good
Reason .
|
|
|
|
Triggering Event . In further consideration for
Executive’s continued employment, Executive will receive the
compensation and benefits set forth in Section 2(b) if the
following requirements are met:
|
|
|
|
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
|
|
|
|
As of the 30th
day following his or her termination date, Executive has executed
the Agreement and General Release in substantially the form
attached to this Agreement or in such form as may be provided by
the Company (the “Release”), any applicable revocation
period has expired and Executive has not revoked the
Release.
|
|
|
|
Compensation and Benefits
. The Company will
provide the following compensation and benefits to
Executive:
|
|
|
|
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) calendar years immediately preceding the
termination date (or, if the Executive was not employed by the
Company during the three (3) immediately preceding calendar years,
the average of or actual cash incentive compensation paid to
Executive during the two (2) preceding calendar years or one (1)
preceding calendar year, as
applicable).. Subject to Section 2(c) below, such
payment shall be made within forty-five (45) days after
Executive’s termination date.
|
|
|
|
The Company
will reimburse Executive for the cost of the premiums for COBRA
group health continuation coverage under the Company’s group
health plan paid by Executive for coverage during the period
beginning following Executive’s termination date and ending
on the earlier of either: (A) first anniversary of
Executive’s termination date; or (B) the date on which
Executive becomes eligible for other group health coverage,
provided that no reimbursement shall be paid unless and until
Executive submits proof of payment acceptable to the Company within
90 days after Executive incurs such expense. Any
reimbursements of the COBRA premium that are taxable to the
Executive shall be made on or before the last day of the year
following the year in which the COBRA premium was incurred, the
amount
|
|
|
of the COBRA
premium eligible for reimbursement during one year shall not affect
the amount of COBRA premium eligible for reimbursement in any other
year, and the right to reimbursement shall not be subject to
liquidation or exchange for another benefit.
|
|
|
|
Delay of
Payment to Comply with Code Section 409A
. Notwithstanding
anything herein to the contrary, if at the time of
Executive’s termination of employment with the Company,
Executive is a “specified employee” within the meaning
of Code Section 409A and the regulations promulgated thereunder,
then the Company shall delay the commencement of such payments
(without any reduction) by a period of six (6) months after
Executive’s termination of employment and any payments so
deferred shall earn interest calculated at the prime rate of
interest reported by The Wall Street Journal as of the date of
termination. Any payments that would have been paid
during such six (6) month period but for the provisions of the
preceding sentence (including interest thereon as provided in the
foregoing provisions of this Section 2(c)) shall be paid in a lump
sum to Executive six (6) months and one (1) day after
Executive’s termination of employment. The 6-month
payment delay requirement of this Section 2(c) shall apply only to
the extent that the payments under this Section 2 are subject to
Code Section 409A. With respect to payments or benefits
under this Agreement that are subject to Code Section 409A, whether
Executive has had a termination of employment shall be determined
in accordance with Code Section 409A and applicable guidance issued
thereunder.
|
|
|
|
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.
|
|
|
|
Notwithstanding
any provision contained herein to the contrary, in the event of any
termination of employment, the Company shall pay Executive his or
her earned, but unpaid, base salary within 10 days of
Executive’s termination date and shall reimburse Executive
for any accrued, but unpaid, reasonable business expenses, in each
case, earned or accrued as of the date of
termination. Executive shall submit documentation of any
business expenses within 90 days of his or her termination date and
any reimbursements of such expenses that are taxable to the
Executive shall be made on or before the last day of the year
following the year in which the expense was incurred, the amount of
the expense eligible for reimbursement during one year shall not
affect the amount of reimbursement in any other year, and the right
to reimbursement shall not be subject to liquidation or exchange
for another benefit.
|
|
|
Withholding . All amounts otherwise payable under
this Agreement shall be subject to customary withholding and other
employment taxes, and shall be subject to such other withholding as
may be required in accordance with the terms of this Agreement or
applicable law.
|
|
|
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).
|
|
|
|
Cause shall mean: (i) the failure
|
|