Stock
Price Performance Targets*
|
Award
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$36.00
plus
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50,000
shares
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$20.00
- $35.99
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16,750
shares plus 20.78 shares for each cent ($.01) above $20.00 stock
price
|
less
than $20.00
|
0
shares
|
Larry
Ellberger
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I
accept the terms of my employment with
PDI.
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a.
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Cause
shall mean (1) the willful
failure
or
refusal to perform lawful directives of the Company that has
a material
adverse impact on the Company; (2) a willful violation of
the Company’s policies and procedures
that has a material adverse impact upon the Company; (3) the
willful
failure to adhere to moral and ethical business principles
that has a
material adverse impact on the Company; (4) Executive’s conviction of a
felony,
or a misdemeanor involving fraud or dishonesty
that has a material adverse impact on the Company (including
entry of a
nolo contendere plea); or (5) any act of dishonesty or fraud
in
the commission of his duties
that has a material adverse impact upon the Company, provided,
however;
that as to items (1), (2), (3) and (5) above, the Company will
provide
thirty (30) days advance written notice and an opportunity
for Executive
to cure such alleged Cause.
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b.
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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
55% 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, directly or indirectly,
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)
and 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 25% 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 unless such acquisition as is described in this
part (4) is
expressly approved by resolution of the Board passed upon affirmative
vote
of not less than a majority of the Board and adopted at a meeting
of the
Board held not later than the date of the next regularly scheduled
or
special meeting held following the date the Company obtains
actual
knowledge of such acquisition (which approval may be limited
in purpose
and effect solely to affecting the rights of Executive under
this
Employment Separation Agreement (this “Agreement”). 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.
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c.
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Good
Reason shall mean the occurrence of any of the following
events: (1) an adverse change, not consented to by the Executive,
in the
nature or scope of the Executive’s responsibilities, authorities, powers,
functions or duties; or (2) a reduction in the Executive’s annual base
salary as in effect on the date hereof or as the same may
be increased
from time to time hereafter, except for across-the-board
salary reductions
similarly affecting all or substantially all management employees;
or (3)
the relocation of the Company’s offices at which the Executive is
principally employed immediately prior to the date of a Change
in
Control (the “Current Offices”) to any other location more than 50
miles from the Current Offices, or the requirement by the
Company for the
Executive to be based anywhere other than the Current Offices,
except for
required travel on the Company’s business; or (4) the failure by the
Company to obtain an effective agreement from any successor
to assume and
agree to perform this Agreement, as required by Section 4,
provided,
however; that as to items (1), (2), and (4) above, the Executive
will
provide thirty (30) days advance written notice and an opportunity
for the
Company to cure such alleged Good Reason. Executive agrees
that he will
not unreasonably withhold his consent to changes in the nature
or scope of
the Executive’s responsibilities, authorities, powers, functions or duties
which may be made or proposed by the Company. Further, Executive
understands and agrees that the Company contemplates the
hiring of a Chief
Financial Officer, an event which shall not constitute “Good Reason” under
this Agreement.
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d.
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Disabled
shall mean the inability of Executive to perform on a full-time
basis the
duties and responsibilities of his employment with the Company
by reason
of his illness or other physical or mental impairment or condition,
if
such inability continues for an uninterrupted period of 180
days or more
during any 360-day period. A period of inability shall be “uninterrupted”
unless and until Executive returns to full-time work for a
continuous
period of at least 30 days.
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