Document:

Zaffaroni Employment Agreement

EMPLOYMENT
AGREEMENT

        THIS
AGREEMENT, dated May 16, 2001, between DENDRITE INTERNATIONAL, INC.,
a New Jersey Corporation (“Dendrite”), having its principal place of
business at 1200 Mt. Kemble Avenue, Morristown, New Jersey 07960, and PAUL
ZAFFARONI (“Employee”), having an address at 20 River Ridge
Circle, Little Rock, Arkansas 72227. 

        WHEREAS,
Dendrite, its affiliates, and subsidiaries develop and own what is referred to
as Territory Management Systems and related hardware and equipment; 

        
WHEREAS, Employee is or desires to be employed by Dendrite and Dendrite desires to employ Employee; and

        WHEREAS,
Dendrite is willing to provide certain confidential and proprietary information
to Employee for the limited purpose of enabling Employee to carry out duties in
connection with his employment by Dendrite. 

RECITAL:

        
NOW, THEREFORE, it is agreed as follows:

1. EMPLOYMENT
AT WILL

        Dendrite
hereby employs Employee, and Employee hereby accepts such employment, as
President and Chief Operating Officer of Dendrite. Dendrite hereby employs
Employee as an at-will employee. This employment may be terminated at any time
for any reason with or without “Cause” (as defined below) by Dendrite.
Employee agrees to provide four (4) weeks notice to Dendrite before terminating
his employment. 

2. DUTIES

        Employee’s
title shall be President and Chief Operating Officer of Dendrite and he shall
initially report to John Bailye. Chief Executive Officer of Dendrite or his
designee. Employee shall perform those duties as may from time to time be
assigned to him and shall carry out any assignments related to Dendrite or its
affiliates as directed. Employee shall devote his full-time attention, energy,
knowledge, skill and best efforts solely and exclusively to the duties assigned
to him which he shall faithfully and diligently perform. Employee shall report
to Dendrite as may be required and will fully account for all records, data,
materials or other property belonging to Dendrite or its customers of which he
is given custody. Dendrite may, from time to time, establish rules and
regulations and Employee shall faithfully observe these in the performance of
his duties. Employee shall further comply with all policies and directives of
Dendrite. 

3. COMPENSATION

	 	(i)
Base Salary. Dendrite shall pay Employee for his services a base salary at a rate
of $450,000 per annum to be paid on a semi- monthly basis in accordance with Dendrite's
regular payroll practices.

	 	(ii)
Bonus. Commencing on the completion of the second fiscal quarter of 2001, Employee
shall be eligible to receive a quarterly bonus (the “Bonus”) of $75,000 per
quarter, payable in the next payroll period occurring at least two weeks after Dendrite
publicly discloses its financial results in such fiscal quarter; provided, however, that
the payment of the Bonus is subject to: (a) Dendrite’s achievement of quarterly
financial goals as set forth in the Board approved annual business plan. (b) such other
objectives as mutually agreed upon, and (c) Employee remaining in the employ of, and not
giving notice of termination to, Dendrite as of the end of any such quarter and (d)
Dendrite’s annual bonus ‘hold back”policy as such policy generally applies
to Dendrite senior executives. 

	 	(iii)
Sign-On Bonus. In connection with Employee’s entering into this Agreement,
Employee shall receive a signing bonus in the total amount of $100,000, which shall be
payable promptly following Employee’s request for payment of such sign-on bonus and
not later than January 15. 2002. Dendrite’s obligation to pay Employee such sign-on
bonus is conditioned upon Employee’s being in the full-time employ of Dendrite on
the date on which such sign-on bonus is paid. Notwithstanding anything to the contrary
contained in this Agreement, it is understood and agreed, however, that in the event that
Employee voluntarily terminates his employment with Dendrite for any reason whatsoever or
Employee’s employment with Dendrite is terminated by Dendrite for “Cause”(as
defined in Section 4(e)) before the three (3) month anniversary of this Agreement,
Employee will pay to Dendrite in full within ninety (90) days of his termination of
employment with Dendrite the aggregate amount paid to Employee under this Section 3(iii).
In the event that Employee voluntarily terminates his employment with Dendrite for any
reason whatsoever or Employee’s employee with Dendrite is terminated by Dendrite for
“Cause”(as defined in Section 4(e)) after the three month anniversary, but
prior to the one year anniversary of this Agreement. Employee will pay to Dendrite within
ninety (90) days of his termination of employment with Dendrite the percentages of the
aggregate amount paid to Employee under this Section 3(iii) delineated in Section 5(iv)
of this Agreement. Employee hereby authorizes Dendrite to immediately offset against and
reduce any amounts otherwise due him for any amounts in respect of his obligation to
repay any amount under this Section 3(iii). 

	 	(iv)
Stock Options.

	 	     (a)
Pursuant to Dendrite’s 1997 Stock Plan, as amended (the “Stock Plan”),
upon the execution of this Agreement, Dendrite shall give Employee an option to purchase
300,000 shares of the common stock of Dendrite. In addition, commencing in 2002 and
continuing each year thereafter, Employee will receive an option to purchase shares of
the common stock of Dendrite predicated on a Black Scholes valuation of between $500,000
and $750,0000. The price for such options shall be determined by the Option Committee and
Compensation Committee of the Board. Employee's entitlement to such options shall be
subject to (i) a four-year vesting schedule, (ii) approval by the Board. (iii) Employee's
execution of a definitive option agreement in form and substance satisfactory to Dendrite
and (iv) in all instances subject to the terms and conditions of the Stock Plan.
Notwithstanding anything to the contrary, in the event of a "Change in Control" (as
defined below), if Employee is not retained in a similar position or no similar position
is offered to Employee following a "Change in Control," all of Employee’s options
previously granted to him at the time of such event shall immediately vest.

	 	     (b)
For purposes of this Agreement, “Change in Control”means the occurrence of any
one of the following events:

	 	(i)
any “person”(as such term is defined in Section 3(a)(9) of the Securities
Exchange Act of 1934 (the “Exchange Act”) and as used in Sections 13(d)(3) and
14(d)(2) of the Exchange Act) is or becomes a “beneficial owner”(as defined in
rule 13d-3 under the Exchange Act), directly or indirectly, of securities of Dendrite
representing 33% or more of the combined voting power of Dendrite’s then outstanding
securities eligible to vote for the election of the Board (the “Dendrite Voting
Securities”); provided, however, that the event described in this
subsection (i) shall not be deemed to be a Change in Control by virtue of any of the
following acquisitions: (A) by Dendrite or any of its subsidiaries, (B) by any employee
benefit plan sponsored or maintained by Dendrite or any of its subsidiaries, (C) by any
underwriter temporarily holding securities pursuant to an offering of such securities,
(D) pursuant to a Non-Qualifying Transaction (as defined in subsection (iii)). (E)
pursuant to any acquisition by Employee or any group of persons including Employee or any
entity controlled by Employee or such group (“Employee Holders”), or (F) a
transaction (other than one described in subsection (iii) below) in which Dendrite Voting
Securities are acquired from Dendrite, if a majority of the Board approves a resolution
providing expressly that the acquisition pursuant to this clause (F) does not constitute
a Change in Control under this subsection (i). Notwithstanding the foregoing, a
transaction that would otherwise be considered a Change in Control but for the operation
of clauses D or F of this subsection (i) will be deemed a Change in Control if John
Bailye immediately after the consummation of such a transaction is neither Chairman,
President or Chief Executive Officer (or holds a position comparable to the foregoing
positions) of Dendrite or any successor corporation, to Dendrite as a result of such
Change in Control transaction: 

	 	(ii)
individuals who, on Employee's first date of employment, constituted the Board (the “Incumbent
Directors”) cease for any reason to constitute at least a majority thereof, provided
that any person becoming a director subsequent to such date, whose election or nomination
for election was approved by a vote of at least a majority of the Incumbent Directors
then on the Board (either by a specific vote or by approval of the proxy statement of
Dendrite in which such person is named as a nominee for director. without objection to
such nomination) shall be an Incumbent Director; provided, however, that no
individual elected or nominated as a director of Dendrite initially as a result of an
actual or threatened election contest with respect to directors or as a result of any
other actual or threatened solicitation of proxies or consents by or on behalf of any
person other than the Board shall be deemed to be an Incumbent Director; 

	 	(iii)
the consummation of a merger, consolidation, share exchange or similar form of corporate
reorganization (other than a transaction with Employee, any group of persons including
Employee or any entity controlled by Employee or such a group of persons) involving
Dendrite or any of its subsidiaries that requires the approval of Dendrite’s
stockholders whether for such transaction or the issuance of securities in connection
with the transaction or otherwise, (a “Business Combination”), unless
immediately following such Business Combination: (A) more than 50% of the total voting
power of (x) the corporation resulting from such Business Combination (the “Surviving
Corporation”), or (y) if applicable, the ultimate parent corporation that directly
or indirectly has beneficial ownership of 100% of the voting securities eligible to elect
directors of the Surviving Corporation (the “Parent Corporation”), is
represented by Dendrite Voting Securities that were outstanding immediately prior to the
consummation of such Business Combination (or, if applicable, is represented by shares
into which such Dendrite Voting Securities were converted pursuant to such Business
Combination), and such voting power among the holders thereof is in substantially the
same proportion as the voting power of such Dendrite Voting Securities among the holders
thereof immediately prior to the Business Combination, (B) no person (other than the
Employee Holders or any employee benefit plan sponsored or maintained by the Surviving
Corporation or the Parent Corporation), is or becomes the beneficial owner, directly or
indirectly, of 33% or more of the total voting power of the outstanding voting securities
eligible to elect directors of the Parent Corporation (or, if there is no Parent
Corporation, the Surviving Corporation), and (C) at least a majority of the members of
the board of directors of the Parent Corporation (or if there is no Parent Corporation,
the Surviving Corporation) were Incumbent Directors at the time of the Board’s
approval of the execution of the initial agreement providing for such Business
Combination (any Business Combination which satisfies all of the criteria specified in
(A), (B) and (C) above shall be deemed to be a “Non-Qualifying Transaction”):
or 

	 	(iv)
the stockholders of Dendrite approve a sale of all or substantially all of the Dendrite's
assets.

Notwithstanding the
foregoing, a Change in Control of Dendrite shall not be deemed to occur solely
because any person acquires beneficial ownership of more than 33% of Dendrite
Voting Securities as a result of the acquisition of Dendrite Voting Securities
by Dendrite which, by reducing the number of Dendrite Voting Securities
outstanding, increases the percentage of shares beneficially owned by such
person: provided, that if a Change in Control of Dendrite would
occur as a result of such an acquisition by Dendrite (if not for the operation
of this sentence), and after Dendrite’s acquisition such person becomes the
beneficial owner of additional Dendrite Voting Securities that increase the
percentage of outstanding Dendrite Voting Securities beneficially owned by such
person, then a Change in Control of Dendrite shall occur. 

4.
TERMINATION; SEVERANCE

	 	
(a)
Upon Employee’s termination of employment by Dendrite for any reason other than
termination by Dendrite for Cause (as defined below), Disability (as defined below) or
upon Employee’s death, Employee shall solely be entitled to (subject to any
applicable off-sets) applicable payments and benefits in Section 4(b), his base salary
through the date of his termination, and payment for any unused but accrued vacation
through the date of termination. 

	 	
(b)
If Employee’s employment hereunder is terminated by Dendrite for any reason other
than death, Cause, or Disability, Employee shall be entitled to receive severance
payments in an aggregate amount equal to the sum of twelve (12) months base salary
(calculated at the rate of base salary then being paid to Employee as of the date of
termination). The severance payments to be paid to Employee under this Section 4(b) shall
be referred to herein as the “Severance Payment”. Employee’s Severance
Payment shall be paid by Dendrite in cash in twelve (12) consecutive equal monthly
payments commencing not later than thirty (30) days after the effective date of the
termination of Employee’s employment. No interest shall accrue or be payable on or
with respect to any Severance Payment. In the event of a termination of Employee’s
employment described in this Section 4(b), Employee shall be provided continued “COBRA”coverage
pursuant to Sections 601 et seq. of ERISA under Dendrite’s group medical and dental
plans. During the period which Employee receives the Severance Payment, Employee’s
cost of COBRA coverage shall be the same as the amount paid by employees of Dendrite for
the same coverage under Dendrite’s group health and dental plans. Notwithstanding
the foregoing, in the event Employee becomes re-employed with another employer and
becomes eligible to receive health coverage from such employer, the payment of COBRA
coverage by Dendrite as described herein shall cease. 

	 	
(c)
If Employee’s employment hereunder is terminated within the one (1) year period
following a Change in Control by Employee for Good Reason (as defined below). Employee
shall be entitled to receive severance payments in an aggregate amount equal to the sum
of twelve (12) months base salary (calculated at the rate of base salary then being paid
to Employee as of the date of termination). The severance payments to be paid to Employee
under this Section 4(c) shall be referred to herein as the “Change in Control
Severance Payment”. Employee’s Change In Control Severance Payment shall be
paid by Dendrite in cash in twelve (12) consecutive equal monthly payments commencing not
later than thirty (30) days after the effective date of the termination of Employee’s
employment. No interest shall accrue or be payable on or with respect to any Severance
Payment. In the event of a termination of Employee’s employment described in this
Section 4(c). Employee shall be provided continued “COBRA”coverage pursuant to
Sections 601 et seq. of ERISA under Dendrite’s group medical and dental plans.
During the period which Employee receives the Severance Payment, Employee’s cost of
COBRA coverage shall be the same as the amount paid by employees of Dendrite for the same
coverage under Dendrite’s group health and dental plans. Notwithstanding the
foregoing, in the event Employee becomes re-employed with another employer and becomes
eligible to receive health coverage from such employer, the payment of COBRA coverage by
Dendrite as described herein shall cease. 

	 	
(d)
The making of any Severance Payments under Sections 4(b) or 4(c) hereunder is conditioned
upon the signing of a general release in form and substance satisfactory to Dendrite
under which Employee releases Dendrite and its affiliates together with their respective
officers, directors, shareholders. employees, agents and successors and assigns from any
and all claims he may have against them. In the event Employee breaches Sections 7, 8. 9,
11 or 12 of this Agreement. in addition to any other remedies at law or in equity,
Dendrite may cease making any Severance Payment or any payments for COBRA coverage
otherwise due under Sections 4(b) or 4(c). Nothing herein shall affect any of Employee’s
obligations or Dendrite’s rights under this Agreement. 

	 	
(e)
For purposes of this Agreement, “Cause”as used herein shall mean (i) any gross
misconduct on the part of Employee with respect to his duties under this Agreement, (ii)
the engaging by Employee in an indictable offense which relates to Employee’s duties
under this Agreement or which is likely to have a material adverse effect on the business
of Dendrite, (iii) the commission by Employee of any willful or intentional act which
injures in any material respect or could reasonably be expected to injure in any material
respect the reputation, business or business relationships of Dendrite, including without
limitation, a breach of Sections 6, 7, 8, 9, 11, 12 or 13 of this Agreement, or (iv) the
engaging by Employee through gross negligence in conduct which injures materially or
could reasonably be expected to injure materially the business or reputation of Dendrite. 

	 	
(f)
For purposes of this Agreement, “Disability”as used herein shall have the same
meaning as that term, or such substantially equivalent term, has in any group disability
policy carried by Dendrite. If no such policy exists, the term “Disability”shall
mean the occurrence of any physical or mental condition which materially interferes with
the performance of Employee’s customary duties in his capacity as an employee where
such disability has been in effect for a period of six (6) months (excluding permitted
vacation time), which need not be consecutive, during any single twelve (12) month
period. 

	 	
(g)
For purposes of this Agreement. “Good Reason”means, without Employee’s
express written consent. the occurrence of any of the following events within one (1)
year following a Change of Control which is not corrected within ten (10) days following
written notice of such event given by Employee to Dendrite: 

	 	(i)
the assignment to Employee of any duties or responsibilities materially and adversely
inconsistent with Employee's position (including any material diminution of such duties
or responsibilities) or (B) a material and adverse change in Employee's reporting
responsibilities, titles or offices (other than membership on the Board) with Dendrite:

	 	(ii)
any material breach by Dendrite of Section 3 of this Agreement;

	 	(iii)
the failure of Dendrite to continue in effect any employee benefit plan, compensation
plan, welfare benefit plan or fringe benefit plan (such plans being referred to herein as
"Welfare Plans") in which Employee is participating as of the effective date of this
Agreement (or as such benefits and compensation may be increased from time to time), or
the taking of any action by Dendrite which would materially and adversely affect
Employee's participation in or materially reduce Employee's benefits under such Welfare
Plans (other than an across-the-board reduction of such benefits affecting senior
executives of Dendrite) unless (i) Employee is permitted to participate in other plans
providing Employee with substantially comparable benefits (at substantially comparable
cost with respect to the Welfare Plans), (ii) any such Welfare Plan does not provide
material benefits to Employee (determined in relation to Employee's compensation and
benefits package), (iii) such failure or action is taken at the direction of Employee or
with his consent, or (iv) such failure or action is required by law;

	 	(iv)
the failure of Dendrite to obtain the assumption of this Agreement from any successor in
the event of a sale of all or substantially all of the assets of Dendrite in one
transaction or a series of related transactions; or

	 	(v)
any requirement of Dendrite that Employee be based anywhere other than Dendrite’s
executive offices located in Morristown, New Jersey, unless such executive offices are
located within fifty (50) miles of Morristown, New Jersey or within the borough of
Manhattan.

Employee must notify
Dendrite of any event constituting Good Reason within ninety (90) days following
Employee’s knowledge of its existence or such event shall not constitute
Good Reason under this Agreement. 

	 	
(h)
In the event Employee terminates his employment with Dendrite or Dendrite terminates
Employee’s employment with Dendrite for “Cause”or Employee’s
employment ends as a result of his death or becoming “Disabled,”it is
understood and agreed that Dendrite’s only obligation is to pay Employee any unused
but accrued vacation days and his base salary through the date of his termination. 

5. BENEFITS

        
Dendrite shall provide Employee:

	 	(i)
Vacation. Four (4) weeks vacation per annum in accordance with Dendrite policy in
effect from time to time.

	 	(ii)
Business Expenses. Reimbursement for all reasonable travel, entertainment and
other reasonable and necessary out-of-pocket expenses incurred by Employee in connection
with the performance of his duties. Reimbursement will be made upon the submission by the
Employee of appropriate documentation and verification of the expenses. 

	 	(iii)
Financial Planning. Financial planning reimbursement in an amount not to exceed S
10,000 per annum in accordance with Dendrite's policy in effect from time to time.

	 	(iv)
Relocation Expenses. In connection with Employee’s relocation to the New
Jersey area, Employee shall be entitled to reimbursement for the following relocation
expenses, payable upon Employee’s submission of appropriate documentation and
verification of the expenses: 

	 	(1)
Reimbursement for two (2) first-class airline tickets to New Jersey for Employee and his
wife.

	 	(2)
Reimbursement for Employee's expenses in connection with the sale of his home in
Arkansas, including those reasonable and customary costs in connection with sales
commission charges and related closing costs.

	 	(3)
Reimbursement for Employee's expenses in connection with the purchase of a home in the
New Jersey area, including those reasonable and customary costs in connection with
closing costs, title insurance, surveys, pre-purchase home inspection and utility
installation. In addition, Employee shall be entitled to reimbursement for his points and
fee costs in connection with obtaining a mortgage for his new home; provided, that (a)
such points shall be two (2) or less, (b) the principal amount of such mortgage does not
exceed 80% of the appraised value of the new home and (c) the purchase of the new home is
consummated no later than June 1, 2002 and (d) Employee remains in the employ of, and has
not given notice of termination to, Dendrite at the time reimbursement under this clause
(3) is payable.

	 	(4)
Reimbursement for Employee's expenses in connection with his moving himself and his
family to the New Jersey area, those reasonable costs associated with professional, fully
insured, packing and shipping of personal and household goods from the Arkansas area to
the New Jersey area and storage of such goods for up to six (6) months.

	 	(5)
Reimbursement for Employee's expenses for temporary housing for a period not to exceed
three (3) months in an amount not to exceed $10,000.

	 	(6)
In the event Employee owns two (2) homes as a result of his relocation to New Jersey,
reimbursement of his mortgage payments for his home in Arkansas for a period not to
exceed six (6) months.

	 	(7)
$25,000 towards miscellaneous expenses not otherwise covered above in clauses (1) through
(6).

Notwithstanding anything to
the contrary contained in this Agreement, it is understood and agreed, however,
that in the event that Employee voluntarily terminates his employment with
Dendrite for any reason whatsoever or Employee’s employment with Dendrite
is terminated by Dendrite for “Cause” before the three (3) month
anniversary of this Agreement. Employee will pay to Dendrite in full within
ninety (90) days of his termination of employment with Dendrite the aggregate
amount paid to Employee under the immediately preceding clauses (1) through (7).
In the event that Employee voluntarily terminates his employment with Dendrite
for any reason whatsoever or Employee’s employment with Dendrite is
terminated by Dendrite for “Cause” after the three month anniversary,
but prior to the one year anniversary of this Agreement, Employee will pay to
Dendrite within ninety (90) days of his termination of employment with Dendrite
the following percentages of the aggregate amount paid to Employee under the
immediately preceding clauses (I) through (7): 

		
	Date of Termination

	 		
	August 1 - September 1, 2001	 	75	%
	September 1 - October 1, 2001	 	67	%
	October 1 - November 1, 2001	 	59	%
	November 1 - December 1, 2001	 	51	%
	December 1 - January 1, 2002	 	43	%
	January 1 - February 1, 2002	 	35	%
	 February 1 - March 1, 2002	 	27	%
	   March 1 - April 1, 2002	 	19	%
	    April 1 - May 1, 2002	 	11	%

Employee hereby authorizes
Dendrite to immediately offset against and reduce any amounts otherwise due to
him for any amounts in respect of his obligation to repay any amounts under this
Section 5(iv). 

	 	(v)
Other. Dendrite will provide Employee other benefits to the same extent
as may be provided to other employees generally in accordance with Dendrite
policy in effect from time to time and subject to the terms and-conditions of
such benefit plans. 

6. INFORMATION
AND BUSINESS OPPORTUNITY

        During
Employee’s employment with Dendrite, Employee may acquire knowledge of (i)
information that is relevant to the business of Dendrite or its affiliates or
(ii) knowledge of business opportunities pertaining to the business in which
Dendrite or its affiliates are engaged. Employee shall promptly disclose to
Dendrite that information or business opportunity but shall not disclose it to
anyone else without Dendrite’s written consent. 

7. DENDRITE
CONFIDENTIAL INFORMATION

        The
Employee will, as a result of his employment with Dendrite, acquire information
which is proprietary and confidential to Dendrite. This information includes,
but is not limited to, Dendrite’s proprietary software, technical and
commercial information, instruction and product information, the design,
“look and feel” and capabilities of Dendrite’s product,
Dendrite’s proprietary training program methodology regarding the
utilization of electronic territory management software and associated customer
support services, Dendrite’s methodology for promoting its products and
services to its clients, Dendrite’s proprietary Graphic User Interface, the
navigational paths through which Dendrite’s clients input and access
information stored in the proprietary software, the particularized needs and
demands of Dendrite’s clients and the customizations Dendrite makes to its
proprietary software to meet those clients’ needs, financial arrangements,
salary and compensation information, competitive status, pricing policies,
knowledge of suppliers, technical capabilities, discoveries, algorithms,
concepts, software in any stage of development, designs, drawings,
specifications, techniques, models, data, technical manuals, training guides and
manuals, research and development materials, processes, procedures, know-how and
other business affairs relating to Dendrite. Confidential information also
includes any and all technical information involving Dendrite’s work.
Employee will keep all such information confidential and will not reveal it at
any time without the express written consent of Dendrite. This obligation is to
continue in force after employment terminates for whatever reason. 

8. CLIENT
CONFIDENTIAL INFORMATION

        Dendrite
may, from time to time, be furnished information and data which is proprietary
and confidential to its clients, customers or suppliers. Employee will not, at
any time for any reason, reveal any information provided by any of
Dendrite’s clients, customers or suppliers to anyone. unless provided with
prior written consent by Dendrite or by the applicable client, customer or
supplier. This obligation is to continue in force after employment terminates
for whatever reason. 

9. RETURN OF
PROPERTY

        Upon
termination of employment for any reason or upon the request of Dendrite,
Employee shall return to Dendrite all property which Employee received or
prepared or helped prepare in connection with his employment including, but not
limited to, all copies of any confidential information or material, disks,
notes, notebooks, blueprints, customer lists and any and all other papers or
material in any tangible media or computer readable form belonging to Dendrite
or to any of its customers, clients or suppliers, and Employee will not retain
any copies, duplicates, reproductions or excerpts thereof. 

10. INVENTIONS

        All
work performed by Employee and all materials, products, deliverables,
inventions, software, ideas, disclosures and improvements, whether patented or
unpatented, and copyrighted material made or conceived by Employee, solely or
jointly, in whole or in part, during the term of Employee’s employment by
Dendrite which (i) relate to methods, apparatus, designs, products, processes or
devices sold, licensed, used or under development by Dendrite, (ii) otherwise
relate to or pertain to the present, proposed or contemplated business,
functions or operations of Dendrite, (iii) relate to Dendrite actual or
anticipated research or development, (iv) involve the use of Dendrite’s
equipment, supplies or facilities, or (v) result from access to any Dendrite
assets, information, inventions or the like are confidential information, are
the property of Dendrite and shall be deemed to be a work made for hire. To the
extent that title to any of the foregoing shall not, by operation of law, vest
in Dendrite, all right, title and interest therein are hereby irrevocably
assigned to Dendrite. Employee agrees to give Dendrite or any person or entity
designated by Dendrite reasonable assistance required to perfect its rights
therein. 

        If
Employee conceives any idea, makes any discovery or invention within one (1)
year after the termination of employment with Dendrite that relate to any
matters pertaining to the business of Dendrite, it shall be deemed that it was
conceived while in the employ of Dendrite. 

11.
RESTRICTION ON FUTURE EMPLOYMENT

        Employee
acknowledges: (i) the highly competitive nature of the business and the industry
in which Dendrite competes: (ii) as the President and Chief Operating Officer,
he will acquire and have access to confidential information as described in
Section 7, particularly highly sensitive financial information. (iii) that, as a
key employee of Dendrite, he will participate in the servicing of current
clients and/or the solicitation of prospective clients, through which, among
other things. Employee will obtain knowledge of the “know-how” and
business practices of Dendrite, in which matters Dendrite has a substantial
proprietary interest; and (iv) that his employment hereunder requires the
performance of services which are special, unique, extraordinary and
intellectual in character, and his position with Dendrite placed and places him
in a position of confidence and trust with the clients and employees of
Dendrite. In the course of the Employee’s employment with Dendrite,
Employee will develop a personal relationship with the clients of Dendrite and a
knowledge of those clients’ affairs and requirements, and that the
relationship of Dendrite with their established clientele will therefore be
placed in Employee’s hands in confidence and trust. Employee consequently
agrees that it is reasonable and necessary for the protection of the
confidential information, goodwill and business of Dendrite that Employee makes
the covenants contained herein and that Dendrite would not have entered into
this Agreement unless the covenants set forth in this Section 11 were contained
in this Agreement. Accordingly. Employee agrees that during the period that he
is employed by Dendrite and for a period of two (2) years thereafter, he shall
not, as an individual, employee, consultant, partner, shareholder, or in
association with any other person, business or enterprise, except on behalf of
Dendrite, directly or indirectly, and regardless of the reason for him ceasing
to be employed by Dendrite: 

	 	(i)      perform  services that compete with the business or businesses  conducted by Dendrite or
any of its  affiliates  or render  services to any person or entity which  competes with the business or businesses
conducted  by  Dendrite  or any of its  affiliates  (or  which  business  Dendrite  can at the  time of  Employee's
termination  of employment  establish it will likely  conduct  within one (1) year following the date of Employee's
termination):

	 	(ii)     attempt  in any  manner  to  solicit  or accept  from any  client  business  of the type
performed by Dendrite or to persuade  any client to cease to do business or to reduce the amount of business  which
any  such  client  has  customarily  done  or is  reasonably  expected  to do  with  Dendrite,  whether  or not the
relationship  between  Dendrite and such client was originally  established in whole or in part through  Employee's
efforts;

	 	(iii)    employ,  attempt  to  employ  or  assist  anyone  else  in  employing  any  employee  or
contractor  of Dendrite or induce or attempt to induce any employee or  contractor  of Dendrite to terminate  their
employment or engagement with Dendrite; or

	 	(iv)     render
 to or for any client any services of the type rendered by Dendrite.

        As
used in this Section 11, the term “client” shall mean (1) anyone who
is a client of Dendrite on the date of Employee’s termination or, if
Employee’s employment shall not have terminated, at the time of the alleged
prohibited conduct (any such applicable date being called the
“Determination Date”); (2) anyone who was a client of Dendrite at any
time during the one (1) year period immediately preceding the Determination
Date: (3) any prospective client to whom Dendrite had made a new business
presentation (or similar offering of services) at any time during the one (1)
year period immediately preceding the Determination Date: and (4) any
prospective client to whom Dendrite made a new business presentation (or similar
offering of services) at any time within six (6) months after the date of
Employee’s termination (but only if the initial discussions between
Dendrite and such prospective client relating to the rendering of services
occurred prior to the date of Employee’s termination, and only if Employee
actively participated in or supervised such discussions). For purposes of this
clause, it is agreed that a general mailing or an incidental contact shall not
be deemed a “new business presentation or similar offering of
services” or a “discussion”. In addition, if the client is part
of a group of companies which conducts business through more than one entity.
division or operating unit, whether or not separately incorporated (a
“Client Group”). the term “client” as used herein shall also
include each entity, division and operating unit of the Client Group where the
same management group of the Client Group has the decision making authority or
significant influence with respect to contracting for services of the type
rendered by Dendrite. 

        For
a two (2) year period after the termination of Employee’s employment for
any reason whatsoever. Employee agrees to promptly notify Dendrite in writing
the identity of all subsequent employers. Employee agrees to provide such
information as Employer may from time to time request to determine
Employee’s compliance with the terms of this Agreement. 

12.
NON-DISPARAGEMENT

        Employee
agrees that he will not at any time make any statement, observation or opinion,
or communicate any information (whether oral or written) that is likely to come
to the attention of any client or employee of Dendrite or any member of the
media. which statement is derogatory of or casts in a negative light Dendrite or
its officers, directors and employees or otherwise engage in any activity which
is inimical to the interests of the Company. 

13. OUTSIDE
CONTRACTING

        Employee
shall not enter into any agreements to provide programming or other services to
any company, person or organization outside of his employment by Dendrite (an
“Outside Agreement”) without the prior written express consent from
Dendrite. Employee must notify Dendrite of his intent to enter into an Outside
Agreement specifying therein the other parry to such Outside Agreement and the
type of programming and/or services to be provided by Employee. Dendrite shall
not unreasonably withhold permission to Employee to enter into Outside
Agreements unless such Outside Agreements (i) are with competitors or potential
competitors of Dendrite, or (ii) as determined in Dendrite’s sole
discretion, shall substantially hamper or prohibit Employee from satisfactorily
carrying out all duties assigned to Employee by Dendrite. 

14.
AFTER-HOURS DEVELOPMENT

        In
the event that Employee shall develop any software which, pursuant to Section 10
herein, is not the property of Dendrite, Dendrite shall have a right of first
refusal to publish and/or purchase the rights to such software. Employee shall
notify Dendrite of any such After-Hours Development as soon as reasonably
possible before or during the development process including a description of the
intended functions of the After-Hours Development and the estimated date of
completion. 

15. PRIOR
EMPLOYMENT

        Employee
represents and warrants that Employee has not taken or otherwise misappropriated
and does not have in Employee’s possession or control any confidential and
proprietary information belonging to any of Employee’s prior employers or
connected with or derived from Employee’s services to prior employers.
Employee represents and warrants that Employee has returned to all prior
employers any and all such confidential and proprietary information. Employee
further acknowledges. represents and warrants that Dendrite has informed
Employee that Employee is not to use or cause the use of such confidential or
proprietary information in any manner whatsoever in connection with
Employee’s employment by Dendrite. Employee agrees, represents and warrants
that Employee will not use such information. Employee shall indemnify and hold
harmless Dendrite from any and all claims arising from any breach of the
representations and warranties in this Section. 

16. REMEDIES

        The
parties agree that in the event Employee breaches or threatens to breach this
Agreement, money damages may be an inadequate remedy for Dendrite and that
Dendrite will not have an adequate remedy at law. It is understood, therefore,
that in the event of a breach of this Agreement by Employee. Dendrite shall have
the right to obtain from a court of competent jurisdiction restraints or
injunctions prohibiting Employee from breaching or threatening to breach this
Agreement. In that event, the parties agree that Dendrite will not be required
to post bond or other security. It is also agreed that any restraints or
injunctions issued against Employee shall be in addition to any other remedies
which Dendrite may have available to it. 

17. APPLICABLE
LAW

        This
Agreement shall be governed by and construed in accordance with the laws of the
State of New Jersey. 

18. NOTICES

        In
the event any notice is required to be given under the terms of this Agreement,
it shall be delivered in the English language, in writing, as follows: 

		
	If to Employee:	 		 
	                    
                
  Paul Zaffaroni, Vice President
                    
                
 
20 River Ridge Circle
                    
                
  Little Rock, Arkansas 72227

	If to Dendrite:	 		 
	        
               
              Christine Pellizzari, Vice President

                       
               Dendrite International, Inc.

                       
              1200 Mount Kemble Drive

                       
               Morristown, New Jersey 07960	 

or to such other address as
either party may have furnished to the other in writing in accordance herewith,
except that notices of changes of address shall be effective only upon receipt. 

19.
NON-ASSIGNABILITY

        Employee’s
rights or obligations under the terms of this Agreement or of any other
agreement with Dendrite may not be assigned. Any attempted assignment will be
void as to Dendrite. Dendrite may, however, assign its rights to any affiliated
or successor entity. 

20. BINDING
AGREEMENT

        This
Agreement shall be binding upon and inure to the benefit of Employee’s
heirs and personal representatives and to the successors and assigns of
Dendrite. 

21. INTEGRATION

        This
Agreement sets forth the entire agreement between the parties hereto and fully
supersedes any and all prior negotiations, discussions, agreements or
understandings between the parties hereto pertaining to the subject matter
hereof. No representations, oral or otherwise, with respect to the subject
matter of this Agreement have been made by either party. 

22. WAIVER

        This
Agreement may not be modified or waived except by a writing signed by both
parties. No waiver by either party of any breach by the other shall be
considered a waiver of any subsequent breach of the Agreement. 

23. ARBITRATION

	 	     (a)
If any dispute arises between Employee and Dendrite that the parties cannot
resolve themselves, including any dispute over the application, validity,
construction, or interpretation of this Agreement, arbitration in accordance
with the then-applicable rules of the American Arbitration Association shall
provide the exclusive remedy for resolving any such dispute, regardless of its
nature; provided, however, that Dendrite may enforce Employee’s obligation
to provide services under this Agreement and Employee’s obligations under
Sections 6 through 13 hereof by an action for injunctive relief and damages in a
court of competent jurisdiction at any time prior or subsequent to the
commencement of an arbitration proceeding as herein provided. 

	 	     (b)
This Section 23 shall apply to claims arising under state and federal statutes,
local ordinances, and the common law. The arbitrator shall apply the same
substantive law that a court with jurisdiction over the parties and their
dispute would apply under the terms of this Agreement. The arbitrator’s
remedial authority shall equal the remedial power that a court with jurisdiction
over the parties and their dispute would have. The arbitrator shall. upon an
appropriate motion. dismiss any claim brought in arbitration if he determines
that the claim could not properly have been pursued through court litigation. If
the then-applicable rules of the American Arbitration Association conflict with
the procedures of this Section 23, the latter shall apply. 

	 	     (c)
If the parties cannot agree upon an arbitrator, the parties shall select a
single arbitrator from a list of seven arbitrators provided by the Newark, New
Jersey office of the American Arbitration Association. All seven listed
arbitrators shall be retired judges experienced in employment law and/or persons
actively involved in hearing private cases. If the parties cannot agree on
selecting an arbitrator from that list, then the parties shall alternately
strike names from the list, with the first party to strike being determined by
lot. After each party has used three strikes, the remaining name on the list
shall be the arbitrator. 

	 	     (d)
Each party may be represented by counsel or by another representative of the
party’s choice, and each party shall pay the costs and fees of its counsel
or other representative and its own filing or administrative fees. The
non-prevailing party (as determined by the arbitrator) shall bear the fees and
costs of the arbitrator. 

	 	     (e)
The arbitrator shall render an award and opinion in the form typical of those
rendered in labor arbitrations. and that award shall be final and binding and
non-appealable. To the extent that any part of this Section 23 is found to be
legally unenforceable for any reason, that part shall be modified or deleted in
such a manner as to render this Section 23 (or the remainder of this Section)
legally enforceable and as to ensure that except as provided in clause (b) of
this Section 23, all conflicts between Dendrite and Employee shall be resolved
by neutral, binding arbitration. The remainder of this Section 23 shall not be
affected by any such modification or deletion but shall be construed as
severable and independent. If a court finds that the arbitration procedures of
this Section 23 are not absolutely binding, then the parties intend any
arbitration decision to be fully admissible in evidence, given great weight by
any finder of fact, and treated as determinative to the maximum extent permitted
by law. 

	 	     (f)
Unless the parties agree otherwise, any arbitration shall take place in Newark,
New Jersey in such location as agreed to by Dendrite and Employee. If the
parties cannot agree upon a location for the arbitration, the arbitrator shall
determine the location within the State of New Jersey. 

	 	     (g)
Employee has read and understands this Section 23 which discusses arbitration.
Employee understands that by signing this Agreement, Employee agrees to submit
any claims arising out of, relating to, or in connection with this Agreement, or
the interpretation, validity, construction, performance, breach or termination
thereof, or his employment or the termination thereof, to binding arbitration,
and that this arbitration provision constitutes a waiver of Employee’s
right to a jury trial and relates to the resolution of all disputes relating to
all aspects of the employer/employee relationship, including but not limited to
the following: 

	 	(i)
Any and all claims for  wrongful  discharge  of  employment,  breach of  contract,  both
express and implied;  breach of the covenant of good faith and fair  dealing,  both express and implied;  negligent
or  intentional  infliction  of  emotional  distress;  negligent  or  intentional  misrepresentation;  negligent or
intentional interference with contract or prospective economic advantage; and defamation;

	 	(ii)
Any  and  all  claims  for  violation  of  any  federal.  state  or  municipal  statute,
including,  without  limitation,  Title VII of the Civil  Rights Act of 1964,  as amended,  the Civil Rights Act of
1991,  the Equal Pay Act, the Employee  Retirement  Income  Security  Act, as amended,  the Age  Discrimination  in
Employment  Act of 1967,  the Americans  with  Disabilities  Act of 1990, the Family and Medical Leave Act of 1993,
the Fair Labor  Standards Act, the New Jersey Family Leave Act, the New Jersey  Conscientious  Employee  Protection
Act and the New Jersey Law Against Discrimination; and

	 	(iii)
Any  and  all  claims  arising  out of  any  other  federal,  state  or  local  laws  or
regulations relating to employment or employment discrimination.

24.
SEVERABILITY

        If
any provision of this Agreement shall be declared invalid or illegal for any
reason whatsoever, then notwithstanding such invalidity or illegality, the
remaining terms and provisions of this Agreement shall remain in full force and
effect in the same manner as if the invalid or illegal provision had not been
contained herein. Moreover, if any one or more of the provisions contained in
this Agreement is held to be excessively broad as to duration. scope, activity
or subject. such provision will be construed by limiting and reducing them so as
to be enforceable to the maximum extent compatible with applicable law. 

25.
JURISDICTION

        The
State of New Jersey shall have exclusive jurisdiction to entertain any legal or
equitable action with respect to Sections 6 through 13 of this Agreement except
that Dendrite may institute any such suit against the Employee in any
jurisdiction in which the Employee may be at the time. In the event suit is
instituted in New Jersey, it is agreed that service of summons or other
appropriate legal process may be effected upon any party by delivering it to the
address in this Agreement specified for that party in Section 18. 

        IN
WITNESS WHEREOF, the parties have signed this Agreement as of the first date
written above. 

			DENDRITE INTERNATIONAL, INC.

By: PAUL L. ZAFFARONI
——————————————

Name:
Title:

J. PAGE STIGER

——————————————

Vice President

	

Amendment to Employment Agreement

     Paul
Zaffaroni (“Zaffaroni”) and Dendrite International, Inc. (“Dendrite”) agree to amend the
Employment Agreement dated May 16, 2001 as follows:  

	1.		Zaffaroni
will commence providing services to Dendrite as a Senior Consultant on June 18, 2001. 

	2.		Effective
October 1, 2001, Zaffaroni will become employed as President and Chief Operating Officer
of Dendrite.

	3.		Except
as otherwise expressly provided herein, the terms and conditions of the Employment
Agreement shall remain in full force and effect, including during the period in which
Zaffaroni serves as Senior Consultant.  

		Agreed to and Accepted:

By: PAUL ZAFFARONI
——————————————

      Paul Zaffaroni

Dated:  6/18/01		Agreed to and Accepted:

J. PAGE STIGER
——————————————

Dendrite International, Inc.

Dated:  6/18/01Zaffaroni Indemnification Agreement

	

INDEMNIFICATION AGREEMENT

     This
Indemnification Agreement (the “Agreement”) dated as of October 1, 2001, by and
between Dendrite International, Inc., a New Jersey Corporation (the “Company”),
and Paul L. Zaffaroni an executive officer of the Company (the “Indemnitee”).  

WITNESSETH:

     WHEREAS,
the Indemnitee is presently serving as an executive officer of the Company, and the
Company desires the Indemnitee to continue in such capacity;  

     WHEREAS,
the Indemnitee is willing, subject to certain conditions (including the execution and
performance of this Agreement by the Company), to continue in that capacity;  

     WHEREAS,
in addition to the indemnification to which the Indemnitee is entitled under the Company’s
certificate of incorporation (the “Certificate”), the Company maintains at its
sole expense insurance protecting its officers and directors (including the Indemnitee)
against certain losses arising out of actual or threatened actions, suits or proceedings
to which such persons may be made or threatened to be made parties; and  

     WHEREAS,
as a result of circumstances having no relation to, and beyond the control of, the
Company and the Indemnitee, there can be no assurance of the continuation or renewal of
that insurance;  

     NOW,
THEREFORE, to induce the Indemnitee to continue to serve in his present capacity and in
consideration of these premises and the mutual agreements set forth in this Agreement,
the Company and the Indemnitee agree as follows:  

     1. Continued
Service. The Indemnitee will continue to serve as an executive officer of the Company
until removal by the Board of Directors in accordance with the Company's bylaws (the
"By-Laws") or until he resigns in writing in accordance with applicable law. 

     2. Initial
Indemnity. (a) The Company shall indemnify the Indemnitee who was or is a party or is
threatened to be made a party to any threatened, pending or completed action, suit or
proceeding, whether civil, administrative, investigative or criminal (other than an
action by or in the right of the Company), by reason of the fact that he is or was or had
agreed to become a director of the Company, or is or was serving or had agreed to serve
at the request of the Company as a director, officer, trustee, employee or agent of
another corporation, partnership, joint venture, trust or other enterprise, or by reason
of any action alleged to have been taken or omitted in such capacity, against any and all
costs, charges and expenses (including attorneys’and others’fees and expenses),
judgments, fines and amounts paid in settlement actually and reasonably incurred by the
Indemnitee in connection therewith and any appeal therefrom if the Indemnitee acted in
good faith and in a manner he reasonably believed to be in or not opposed to the best
interests of the Company, and, with respect to any criminal action or proceeding, had no
reasonable cause to believe his conduct was unlawful. The termination of any action, suit
or proceeding by judgment, order, settlement, conviction or upon a plea of non contendre
or its equivalent shall not, of itself, create a presumption that the Indemnitee did not
satisfy the foregoing standard of conduct to the extent applicable thereto.  

     (b)
The Company shall indemnify the Indemnitee who was or is a party or is threatened to be
made a party to any threatened, pending or completed action, suit or proceeding by or in
the right of the Company to procure a judgment in its favor by reason of the fact that he
is or was or had agreed to become a director of the Company, or is or was serving or had
agreed to serve at the request of the Company as a director, officer, trustee, employee
or agent of another corporation, partnership, joint venture, trust or other enterprise
against costs, charges and expenses (including attorneys’and others’fees and
expenses) actually and reasonably incurred by him in connection with the defense or
settlement thereof or any appeal therefrom if he acted in good faith and in a manner he
reasonably believed to be in or not opposed to the best interests of the Company and
except that no indemnification shall be made in respect of any claim, issue or matter as
to which the Indemnitee shall have been adjudged to be liable to the Company unless and
only to the extent that the Superior Court or the court in which such action, suit or
proceeding was brought shall determine upon application that, despite the adjudication of
liability but in view of all the circumstances of the case, the Indemnitee is fairly and
reasonably entitled to indemnity for such expenses which the Superior Court or such other
court shall deem proper.  

     (c) To
the extent that the Indemnitee has been successful on the merits or otherwise, including
without limitation the dismissal of an action without prejudice, in any action, suit or
proceeding referred to in Sections 2(a) or 2(b) or in defense of any claim, issue or
matter therein, he shall be indemnified against costs, charges and expenses (including
attorneys’and others’fees and expenses) actually and reasonably incurred by him
in connection therewith.  

     (d)
Any indemnification under Sections 2(a) or 2(b) (unless ordered by a court) shall be made
by the Company only as authorized in the specific case upon a determination in accordance
with Section 4 or any applicable provision of the Certificate, By-Laws, other agreement,
resolution or otherwise. Such determination shall be made (i) by the Board of Directors
of the Company (the “Board”) by a majority vote of a quorum consisting of
directors who were not parties to such action, suit or proceeding, (ii) if such a quorum
of disinterested directors is not available or so directs, by independent legal counsel
(designated in the manner provided below in this subsection (d)) in a written opinion or
(iii) by the stockholders of the Company (the “Stockholders”). Independent
legal counsel shall be designated by vote of a majority of the disinterested directors;
provided, however, that if the Board is unable or fails to so designate, such
designation shall be made by the Indemnitee subject to the approval of the Company (which
approval shall not be unreasonably withheld). Independent legal counsel shall not be any
person or firm who, under the applicable standards professional conduct then prevailing,
would have a conflict of interest in representing either the Company or the Indemnitee in
an action to determine the Indemnitee’s rights under this Agreement. The Company
agrees to pay the reasonable fees and expenses of such independent legal counsel and to
indemnify fully such counsel against costs, charges and expenses (including attorneys’and
others’fees and expenses) actually and reasonably incurred by such counsel in
connection with this Agreement or the opinion of such counsel pursuant hereto.  

     (e)
All expenses (including attorneys’and others’fees and expenses) incurred by the
Indemnitee in his capacity as a director of the Company in defending an actual or
threatened civil or criminal action, suit or proceeding shall be paid by the Company in
advance of the final disposition of such action, suit or proceeding in the manner
prescribed by Section 4(b).  

     (f)
The Company shall not adopt any amendment to the Certificate or By-Laws the effect of
which would be to deny, diminish or encumber the Indemnitee’s rights to indemnity
pursuant to the Certificate, By-Laws, the New Jersey Business Corporation Act (the “Corporation
Act”) or any other applicable law as applied to any act or failure to act occurring
in whole or in part prior to the date (the “Effective Date”) upon which the
amendment was approved by the Board of the Stockholders, as the case may be. If the
Company shall adopt any amendment to the Certificate or By-Laws the effect of which would
be to so deny, diminish or encumber the Indemnitee’s rights to indemnity, such
amendment shall apply only to acts or failures to act occurring entirely after the
Effective Date thereof.  

     3. Additional
Indemnification. (a) Pursuant to Section 14A:3-5 of the Corporation Act, without
limiting any right which the Indemnitee may have pursuant to Section 2, the Certificate,
the By-Laws, the Corporation Act, any policy of insurance or otherwise, but subject to
the limitations on the maximum permissible indemnity which may exist under applicable law
at the time of any request for indemnity hereunder determined as contemplated by Section
3(a), the Company shall indemnify the Indemnitee against any amount which he is or
becomes legally obligated to pay relating to or arising out of any claim made against
him, because of any act, failure to act or neglect or breach of duty, including any
actual or alleged error, misstatement or misleading statement, which he commits, suffers,
permits or acquiesces in while acting in his capacity as a director of the Company, or,
at the request of the Company, as a director, officer, trustee, employee or agent of
another corporation, partnership, joint venture, trust or other enterprise. The payments
which the Company is obligated to make pursuant to this Section 3 shall include without
limitation damages, judgments, settlements and charges, costs, expenses, damages,
judgments, settlements and charges, costs, expenses, expenses of investigation and
expenses of defense of legal actions, suits, proceedings or claims and appeals therefrom,
and expenses of appeal, attachment or similar bonds; provided, however, that the
Company shall not be obligated under this Section 3(a) to make any payment in connection
with any claim against the Indemnitee if a judgment or other final adjudication adverse
to the Indemnitee establishes that his acts or omissions (i) were in breach of his duty
of loyalty to the Company or the Stockholders, (ii) were not in good faith or involved a
knowing violation of law, or (iii) resulted in receipt by the Indemnitee of an improper
personal benefit. The determination of whether the Indemnitee shall be entitled to
indemnification under this Section 3(a) may be, but shall not be required to, be made in
accordance with Section 4(a). If that determination is so made, it shall be binding upon
the Company and the Indemnitee for all purposes.  

     (b)
Expenses (including without limitation attorneys’and others’fees and expenses)
incurred by Indemnitee in defending any actual or threatened civil or criminal action,
suit, proceeding or claim, shall be paid by the Company in advance of the final
disposition thereof as authorized in accordance with Section 4(b).  

     4. Certain
Procedures Relating to Indemnification and Advancement of Expenses. (a) Except as
otherwise permitted or required by the Corporation Act, for purposes of pursuing his
rights to indemnification under Sections 2(a), 2(b) or 3(a), the Agreement as the case
may be, the Indemnitee may, but shall not be required to, (i) submit to the Board a sworn
statement of request for indemnification substantially in the form of Exhibit Aattached
hereto and made a part hereof (the “Indemnification Statement”) averring that
he is entitled to indemnification hereunder; and (ii) present to the Company reasonable
evidence of all expenses for which payment is requested, including appropriate invoices.
Submission of an Indemnification Statement to the Board shall create a presumption that
the Indemnitee is entitled to indemnification under Sections 2(a), 2(b) or 3(a), as the
case may be, and the Board shall be deemed to have determined that the Indemnitee is
entitled to such indemnification unless within 30 calendar days after submission of the
Indemnification Statement the Board shall determine by vote of a majority of the
directors at a meeting at which a quorum is present, based upon clear and convincing
evidence (sufficient to rebut the foregoing presumption), and the Indemnitee shall have
received notice within such period in writing of such determination, that the Indemnitee
is not so entitled to indemnification, which notice shall disclose with particularity the
evidence in support of the Board’s determination. The foregoing notice shall be
signed by the director presiding as chairman at the meeting at which the vote to deny
indemnification was taken or, if the action to deny indemnification was by written
consent without a meeting, signed by all persons who participated in the determination
and voted to deny indemnification. The provisions of this Section 4(a) are intended to be
procedural only and shall not affect the right of the Indemnitee to indemnification under
this Agreement, and any determination by the Board that the Indemnitee is not entitled to
indemnification and any failure to make the payments requested in the Indemnification
Statement shall be subject to judicial review as provided in Section 7.  

     (b)
For purposes of determining whether to authorize advancement of expenses pursuant to
Section 2(e), the Indemnitee shall submit to the Board a sworn statement of request for
advancement of expenses substantially in the form of Exhibit Battached hereto and
made a part hereof (the “Undertaking”), averring that (i) he has reasonably
incurred or will reasonably incur actual expenses in defending an actual or threatened
civil or criminal action, suit, proceeding of claim and (ii) he undertakes to repay such
amount if it shall ultimately be determined that he is not entitled to be indemnified by
the Company under this Agreement or otherwise, which repayment shall be made within 180
days of a written request therefor by the Company. For purposes of requesting advancement
of expenses pursuant to Section 3(b), the lndemnitee may, but shall not be required to,
submit an Undertaking or such other form of request as he determines to be appropriate
(an “Expense Request”). Upon receipt of an Undertaking or Expense Request, as
the case may be, the Board may make reasonable inquiries to determine whether such
expenses relate to an action, suit, proceeding or claim the subject matter of which is of
the type for which the lndemnitee may make a claim for indemnification under this
Agreement. Unless the Board determines within 10 calendar days after receipt of such
Undertaking or Expense Request that such expenses relate to an action, suit, proceeding
or claim the subject matter of which is not of the type for which the Indemnitee may make
a claim for indemnification under this Agreement, the Board shall authorize immediate
payment of the expenses stated in the Undertaking or Expense Request, as the case may be,
whereupon such payments shall immediately be made by the Company. No security shall be
require in connection with an Undertaking or Expense Request shall be accepted without
reference to the Indemnitee’s ability to make repayment. For purposes of pursuing
his rights to advancement of expenses hereunder, the Indemnitee shall present to the
Company reasonable evidence of all expenses for which advancement is requested, including
appropriate invoices.  

     5. Subrogation;
Duplication of Payments. (a) In the event of payment under this Agreement, the
Company shall be subrogated to the extent of such payment to all of the rights of
recovery of the Indemnitee, who shall execute all papers required and shall do everything
that may be necessary to secure such rights, including the execution of such documents
necessary to enable the Company effectively to bring suit to enforce such rights.  

     (b)
The Company shall not be liable under this Agreement to make any payment in connection
with any claim made against the Indemnitee to the extent the Indemnitee has actually
received payment (under any insurance policy, the Certificate, the By-Laws or otherwise)
of the amounts otherwise payable hereunder.  

     6. Enforcement.
(a) If a claim for indemnification made to the Company pursuant to Section 4 is not paid
in full by the Company within 30 calendar days after a written claim has been received by
the Company, the Indemnitee may at any time thereafter bring suit against the Company to
recover the unpaid amount of the claim. 

     (b) In
any action brought under Section 6(a), it shall be a defense to a claim for
indemnification pursuant to Sections 2(a) or 2(b) (other than an action brought to
enforce a claim for expenses incurred in defending any proceeding in advance of its final
disposition where the Undertaking, if any is required, has been tendered to the Company)
that the Indemnitee has not met the standards of conduct which make it permissible under
the Corporation Act for the Company to indemnify the Indemnitee for the amount claimed,
but the burden or proving such defense shall be on the Company. Neither the failure of
the Company (including the Board, independent legal counsel or the Stockholders) to have
made a determination prior to commencement of such action that indemnification of the
Indemnitee is proper in the circumstances because he has met the applicable standard of
conduct set forth in the Corporation Act, nor an actual determination by the Company
(including the Board, independent legal counsel or the Stockholders) that the Indemnitee
has not met such applicable standard of conduct, shall be a defense to the action or
create a presumption that the Indemnitee has not met the applicable standard of conduct.  

     (c)
The Indemnitee shall not be required to incur the expenses associated with the
enforcement of his rights under this Agreement by litigation or other legal action
because the cost and expense thereof would substantially detract from the benefits
intended to be extended to the Indemnitee hereunder. Accordingly, if the Company has
failed to comply with any of its obligations under this Agreement or if the Company or
any other person takes any action to declare this Agreement void or unenforceable, or
institutes any action, suit or proceeding designed (or having the effect of being
designed) to deny, or to recover from, the Indemnitee the benefits intended to be
provided to the Indemnitee hereunder, the Company irrevocably authorizes the Indemnitee
from time to time, at the expense of the Company as hereinafter provided, to retain
counsel (in compliance with Section 7) to represent the Indemnitee in connection with the
initiation or defense of any such action, suit, or proceeding, whether by or against the
Company or any director, officer, stockholder or other person affiliated with the
Company, in any jurisdiction. The Company shall pay and be solely responsible for any and
all costs, charges and expenses (including attorneys’and others’fees and
expenses) reasonably incurred by the Indemnitee (i) as a result o the Company’s
failure to perform this Agreement or any provision hereof or (ii) as a result of the
Company or any person contesting the validity or enforceability of this Agreement or any
provision hereof as aforesaid.  

     7. Counsel.
With respect to any action, suit, proceeding or claim for which indemnification or
advancement of expenses may be sought pursuant to this Agreement and upon request of the
Indemnitee after the Indemnitee has submitted an Indemnification Statement to the Board,
the Company shall retain counsel reasonably satisfactory to the lndemnitee to represent
the Indemnitee and any other party the Company may designate (which may include the
Company) in connection with the action, suit, proceeding or claim to which the
Indemnification Statement relates. In connection with any such action, suit, proceeding
or claim, the Indemnitee shall have the right to retain his own counsel at his own
expense, except that the fees and expenses of such counsel retained by the Indemnitee
shall be expenses for which indemnification and advancement shall be available under this
Agreement if (i) the Company and the Indemnitee shall have agreed to the retention of
such counsel or (ii) the parties named or threatened to be named in any such action,
suit, proceeding or claim (including impleaded parties) include, in addition to the
Indemnitee, the Company or another party who may be indemnified by the Company and
representation of more than one party by the same counsel would be inappropriate due to
actual or, in the reasonable opinion of the Company, potential conflicts of interests
between them.  

     8. Merger
or Consolidation. If the Company shall be a constituent corporation in a
consolidation, merger or other reorganization, the Company, if it shall not be the
surviving, resulting or other corporation therein, shall require as a condition thereto
the surviving, resulting or acquiring corporation to agree to indemnify the Indemnitee to
the full extent provided in this Agreement. Whether or not the Company is the resulting,
surviving or acquiring corporation in any such transaction, the Indemnitee shall also
stand in the same position under this Agreement with respect to the resulting, surviving
or acquiring corporation as he would have with respect to the Company if its separate
existence had continued.  

     9. Nonexclusivity
and Severability. (a) The right to indemnification provided by this Agreement shall
not be exclusive of any other rights to which the Indemnitee may be entitled under the
Certificate, By-Laws, the Corporation Act, any other statute, insurance policy,
agreement, vote of stockholders or directors or otherwise, both as to actions in his
official capacity and as to actions in another capacity while holding such office, and
shall continue after the Indemnitee has ceased to be a director, officer, trustee,
employee or agent and shall inure to the benefit of his heirs, executors and
administrators.  

     (b) If
any provision of this Agreement or the application of any provision hereof to any person
or circumstances is held invalid, unenforceable or otherwise illegal, the remainder of
this Agreement and the application of such provision to other persons or circumstances
shall not be affected, and the provision so held to be invalid, unenforceable or
otherwise illegal shall be reformed to the extent (and only to the extent) necessary to
make it enforceable, valid and legal.  

     10. Governing
Law. This Agreement shall be governed by and construed in accordance with the laws of
the State of New Jersey, without giving effect to the principles of conflicts of law
thereof. 

     11. Modification;
Survival. This Agreement contains the entire agreement of the parties relating to the
subject matter hereof. This Agreement may be modified only by an instrument in writing
signed by both parties hereto. The provisions of this Agreement shall survive the death,
disability, or incapacity of the Indemnitee or the termination of the Indemnitee’s
service as a director of the Company and shall inure to the benefit of the Indemnitee’s
heirs, executors and administrators.  

     12. Certain
Terms. For purposes of this Agreement, references to “other enterprises”shall
include employee benefit plans; references to “fines”shall include any excise
taxes assessed on lndemnitee with respect to any employee benefit plan; and references to
“serving at the request of the Company”shall include any service as a director,
officer, trustee, employee or agent of the Company which imposes duties on, or involves
services by, the Indemnitee with respect to an employee benefit plan, its participants or
beneficiaries; references to the masculine shall include the feminine; references to the
singular shall include the plural and vice versa; and if the Indemnitee acted in
good faith and in a manner he reasonably believed to be in the interest of the
participants and beneficiaries of an employee benefit plan he shall be deemed to have
acted in a manner “not opposed to the best interests of the Company”as
referenced to herein.  

     13. Headings
and Interpretation. When a reference is made in this Agreement to Sections or
Exhibits, such references shall be to a Section or Exhibit to this Agreement unless
otherwise indicated. 

     IN
WITNESS WHEREOF, the Company and the Indemnitee have duly executed this Agreement as of
the date first above written.  

			DENDRITE INTERNATIONAL, INC.

By:  CHRISTINE A. PELLIZZARI
——————————————

        Christine A. Pellizzari

			

        PAUL L. ZAFFARONI
——————————————

         Paul L. Zaffaroni

	

Exhibit A

INDEMNIFICATION STATEMENT

STATE OF          
             
               )

          
            
                    
          
  )      SS

COUNTY OF           
           
           ) 

     I,
_______________________, being first duly sworn, do depose and say as follows:  

     1.  This
Indemnification Statement is submitted pursuant to the Indemnification Agreement dated as
of October 1, 2001 between Dendrite International, Inc., a New Jersey corporation (the
“Company”), and the undersigned. 

     2.  I
am requesting indemnification against charges, costs, expenses (including attorneys’and
others’fees and expenses), judgments, fines and amounts paid in settlement, all of
which (collectively, “Liabilities”) have been or will be incurred by me in
connection with an actual or threatened action, suit, proceeding or claim to which I am a
party or am threatened to be made a party.  

     3.  With
respect to all matters related to any action, suit, proceeding or claim, I am entitled to
be indemnified as herein contemplated pursuant to the aforesaid Indemnification
Agreement.  

     4.  Without
limiting any other rights which I have or may have, I am requesting indemnification
against Liabilities which have or may arise out of ________________________________.

     Subscribed
and sworn to before me, a Notary Public in and for said County and State, this ____ day
of ________________________, ______.

     

[Seal] 

     My
commission expires the ___ day of ___________, ____. 

	

Exhibit B 

UNDERTAKING

STATE OF          
             
               )

          
            
                    
          
  )      SS

COUNTY OF           
           
           )

     I,
_______________________, being first duly sworn, do depose and say as follows:

     1.
This Undertaking is submitted pursuant to the Indemnification Agreement dated as of
October 1, 2001 between Dendrite International, Inc., a New Jersey corporation (the
“Company”), and the undersigned. 

     2. I
am requesting advancement of certain costs, charges and expenses which I have incurred or
will incur in defending an actual or threatened civil or criminal action, suit,
proceeding or claim.  

     3. I
hereby undertake to repay this advancement of expenses if it shall ultimately be
determined that I am not entitled to be indemnified by the Company under the aforesaid
Indemnity Agreement or otherwise. Such repayment shall be made within 180 days of a
written request therefore by the Company.  

     4.  
The costs, charges and expenses for which advancement is requested are, in general, all expenses
related to ______________________________________________________.

     Subscribed
and sworn to before me, a Notary Public in and for said County and State, this ____ day of _________________. 

     

[Seal] 

     My
commission expires the ____ day of ______________________________, ____.

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