Document:

Exhibit 10.7

 

DENDRITE

1405/21425 ROUTE 206 SOUTH   BEDMINSTER, NJ 07921 USA

 

October 3, 2005

 

 

 

Joseph Ripp

[Address]

 

Dear Joe:

 

                We
would like to confirm the terms and conditions of your employment with Dendrite
International, Inc. (“Dendrite”) as set forth below in the Specific Terms and
Conditions of Employment and the General Terms and Conditions of Employment
(collectively the “Agreement”).

 

 

SPECIFIC TERMS & CONDITIONS
OF EMPLOYMENT

 

1.                DUTIES/TERM.
You
will be employed as President and Chief Operating Officer reporting to the
Chief Executive Officer (“CEO”). This employment is subject to Board
ratification. If the Board ratifies your employment, you anticipate starting
employment on November 1, 2005. You shall (i) perform those duties as may from
time to time be assigned to you by the CEO, consistent with your senior
position; (ii) devote your full-time attention and best efforts solely and
exclusively to the duties assigned to you; and (iii) comply with all existing Dendrite
rules, regulations, policies and directives and those which may be established
from time to time. Your employment will be at-will and may be terminated at any
time for any reason with or without cause by Dendrite. You agree to provide two
(2) weeks notice to Dendrite before terminating your employment.

 

2.                COMPENSATION.

 

(a)                Base
Salary. Dendrite shall pay you for your services a base salary at a rate of
$800,000 per annum to be paid on a
semi-monthly basis in accordance with Dendrite’s regular payroll practices.
Dendrite may increase, but not decrease,
your base salary during your employment. Any salary increases will be evaluated
no less frequently than on the anniversary date of your employment.

 

DENDRITE
INTERNATIONAL, INC

TEL 908.443.2000
FAX 908.443.4369 www.dendrite.com

 

 

 

(b)                Bonus.
You will be eligible to receive an annual discretionary bonus (the “Bonus”)
with an initial target of $600,000. Bonus eligibility shall be determined and
paid in accordance with Dendrite’s applicable incentive compensation policy
then in effect for senior executives. The payment of any Bonus is subject to:
(i) Dendrite’s achievement of quarterly and annual financial goals as set forth
in the Board approved annual business plan, (ii) such other objectives as may be
determined by Dendrite from time to time and (iii) the terms and conditions of
the applicable incentive compensation plan then in effect for senior
executives. Your target for a discretionary bonus will be reviewed and
determined on an annual basis by Dendrite. Your target bonus may be increased,
but not decreased during your employment. Notwithstanding the forgoing,
Dendrite will pay you a 2005 bonus calculated as follows: $600.000 times a
fraction the numerator of which is the number of days you worked for Dendrite
and the denominator of which is 365, subject to the provisions of section 4. In
addition, Dendrite will pay you at least a $600,000 bonus for 2006, subject to
the provisions of section 4. Bonuses shall be paid no later than March 31 of
the following year.

 

(c)                Stock
Options. Pursuant to Dendrite’s New Hire Stock Plan (the “Stock Plan”),
upon the execution of this Agreement, you shall he eligible to receive
non-qualified options to purchase 500,000 shares of the common stock of
Dendrite. The price for such options shall be determined by the Compensation
Committee of the Board, subject to the terms and conditions of the Stock Plan.
Such options shall fully vest on December 31, 2005. In 2006 and any subsequent
year of this Agreement, you will be eligible to receive non-qualified options
to purchase stock in an amount in excess of the amount of any such options
granted to any other senior executive of Dendrite with respect to such year
(except for options granted to the CEO). In addition, your entitlement to such
options shall he subject to (i) a three-year restriction on selling the
underlying shares such that no more than 1/3 of such shares may be sold in
each of the three (3) twelve-month periods ending on the first, second and
third year anniversaries of the option grant date, (ii) approval by the Board,
(iii) your execution of a definitive option agreement in form and substance
reasonably satisfactory to Dendrite and (iv) in all instances subject to the
terms and conditions of the Stock Plan.

 

(d)                Restricted
Stock. Pursuant to the Stock Plan, upon the execution of this Agreement,
you shall be eligible to receive 250,000 restricted units of the common stock
of Dendrite. Your entitlement to such restricted stock units shall be subject
to (i) a three-year vesting schedule (ii) approval by the Board, (iii) your
execution of a definitive restricted stock agreement in form and substance
reasonably satisfactory to Dendrite and (iv) in all instances subject to the
terms and conditions of the Stock Plan.

 

3.                BENEFITS.

 

Dendrite
shall provide you:

 

(a)                Vacation.
4 weeks vacation per annum in accordance with Dendrite policy in effect from
time to time. Unused vacation is paid out, on a pro-rata basis, upon employment
termination.

 

 

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(b)                Business
Expenses. Reimbursement for reasonable travel, entertainment and other
reasonable and necessary out-of-pocket expenses incurred by you in connection
with the performance of your duties in accordance with Dendrite policy in
effect from time to time.

 

(c)                Retirement
Benefits. Retirement benefits to the same extent as may be provided to
other similarly situated senior executives in accordance with Dendrite policy
then in effect and subject to the terms and conditions of such benefit plans.

 

(d)                Indemnification.
Throughout your employment with Dendrite, you will have indemnification rights
in accordance with the indemnification provisions contained in the Company’s
Directors & Officers insurance policy, Certificate of Incorporation, and
By-laws, then in effect. In addition, you will have the indemnification rights
as set forth in the Indemnification Agreement between you/Dendrite.

 

(e)                Life
Insurance. Throughout your employment with Dendrite, you will he covered
under Dendrite’s life insurance policy, subject to the terms and conditions of
such policy as amended from time to time. To the extent that the life insurance
benefits under such coverage is not at least equal to one times your base
salary and target bonus (the “Life Insurance Benefit”), Dendrite will reimburse
you the cost of your obtaining total coverage that provides the Life Insurance
Benefit, as follows. You agree to obtain any necessary excess coverage through
Dendrite’s life insurance policy, subject to any cap. If after reaching any
such cap, you still do not have coverage that provides the Life Insurance
Benefit, then you may obtain coverage from an outside source at a commercially
reasonable price so that in total you have coverage that provides the Life
Insurance Benefit. Provided you comply with the provisions set forth herein,
Dendrite agrees to reimburse you for the cost of the excess insurance under its
plan and coverage from an outside source to attain in total the Life Insurance
Benefit. At Dendrite’s sole discretion, Dendrite may elect to provide you with
any or all coverage under this Section 3(e) through any

insurance it obtains.

 

(f)                Disability
Insurance. Throughout your employment with Dendrite, you will be covered
under Dendrite’s long-term and short-term disability policies, subject to the
terms and conditions of such policies as amended from time to time. To the
extent that the long-term disability benefit properly payable under Dendrite’s
long-term disability policy is not at least equal to one times your base salary
and target bonus (the “LTD Benefit”), Dendrite will reimburse you the cost of
your obtaining total coverage that provides the LTD Benefit as follows. You agree
to obtain any necessary excess coverage through Dendrite’s Long-Term Disability
Plan, subject to any cap. If after reaching any such cap, you still do not have
total coverage that provides the LTD Benefit, then you may obtain coverage from
an outside source at a commercially reasonable price so that in total you have
coverage that provides the LTD Benefit. Provided you comply with the provisions
set forth herein, Dendrite agrees to reimburse you for the cost of the excess
insurance under its policies and coverage from an outside source to attain in
total the LTD Benefit. At Dendrite’s sole discretion, Dendrite may elect to
provide you with any or all coverage under this Section 3(f) through any
insurance it obtains.

 

 

2

 

(g)                Other.
Other benefits to the same extent and with the same cost as may be provided
to other senior executives in accordance with Dendrite policy then in effect
and subject to the terms and conditions of such benefit plans. Such benefits
may include, but are not limited to, Medical, Dental, Life and AD&D, Short
Term Disability, Long-Term Disability, and Deferred Compensation.

 

4. TERMINATION;
SEVERANCE

 

(a)                Upon
your termination of employment by Dendrite for any reason other than termination
by Dendrite for Cause (as defined in Exhibit A), Disability (as defined in
Exhibit A) or upon your death, you shall solely be entitled to (subject to any
applicable off-sets) applicable payments and benefits in Section 4(b), and your
base salary through the date of your termination.

 

(b)                If
your employment hereunder is terminated (i) by Dendrite for any reason other
than death, Cause (as defined in Exhibit A), or Disability (as defined in
Exhibit A), or (ii) voluntarily by you with Good Reason (as defined in Exhibit
A), you shall be entitled to receive severance payments of your monthly base
salary for 12 months following your employment termination (calculated at the
rate of base salary then being paid to you as of the date of termination) and your
annual target bonus as of the date of termination. The severance payments to be
paid to you under this Section 4(b) shall be referred to herein as the “Severance
Payment” and the 12-month period of Severance Payments shall be referred to as
the “Severance Period.” Your severance shall commence on the next regularly
scheduled monthly payday following the effective date of the termination of
your employment. No interest shall accrue or be payable on or with respect to
any Severance Payment. Your benefits coverage will continue under Dendrite’s
group medical and dental plans for the Severance Period. At the conclusion of
the Severance Period, you shall be provided the opportunity to continue your
benefits coverage pursuant to “COBRA,” Sections 601 et seq. of ERISA. During
the Severance Period your cost of health and dental benefits coverage shall be
the same as the amount you paid as an active employee under Dendrite’s group
health and dental plans. Notwithstanding the foregoing, in the event you become
re-employed with another employer during the Severance Period, you will no
longer be eligible for participation in Dendrite’s plans at employee rates,
Dendrite will have no obligation to pay for the cost of any health and dental
coverage. and you will immediately become eligible for COBRA coverage at COBRA
(102% of premiums) rates. You agree to notify Dendrite of any full time
employment that you begin during the Severance Period. If your employment is
terminated by Dendrite as described in this Section 4(b), in addition to the
Severance Payment, your bonus for the year in which employment is so terminated
will be pro­rated to reflect the percentage of days of the year during which
you performed services for Dendrite (“Pro-rata Bonus Payment”).

 

(c)                In
the event of a Change of Control all stock options then granted to you by
Dendrite will immediately vest and all sale restrictions will be lifted.

 

(d) The
making of any Severance Payments and Pro-rata Bonus Payment and the provision
of benefits under Sections 4 (b) or 4 (c) hereunder is conditioned upon the
signing of a

 

 

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general release in  form and
substance satisfactory to Dendrite under which you release
Dendrite and its affiliates together with their respective officers, directors,
shareholders, employees, agents and successors
and assigns from any and all claims you may have against them. You will not be
required to release
your rights under Dendrite’s benefit and retirement plans, stock plans, or any
rights that you may have to coverage and indemnification pursuant to law or
Dendrite policies. In the event you breach Section 2, 3, 5 and 6 of the General
Terms and Conditions of Employment, in addition to any other remedies at law or
in equity, Dendrite may cease making any Severance Payment or Pro-rata Bonus
Payment otherwise due under Sections 4(b). Nothing herein shall affect any
of your obligations or Dendrite’s rights under this Agreement.

 

                (e)                In
the event you terminate your employment with Dendrite without “Good Reason” or
Dendrite terminates your employment for “Cause” it is understood and agreed
that Dendrite’s only obligation is to
pay you your base salary through the date of your termination and to offer you COBRA coverage in accordance
with applicable law. You will not be entitled to a Pro-rata BonusPayment if you
terminate employment without Good Reason or are terminated for Cause.

 

                Please sign
where indicated below to acknowledge your agreement to the
Specific Terms and Conditions (“Special Terms”) set forth above and the General Terms and
Conditions of Employment attached hereto (“General Terms”), both of which
together shall form the terms
and conditions of your employment (the “Agreement”).

 

	
   

  	
   

  	
  Sincerely

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ John Bailye

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  John Bailye

  
	
   

  	
   

  	
  Chairman, Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
  Accepted and agreed to:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Joseph Ripp

  	
   

  	
   

  
	
  Joseph Ripp

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date: 

  	
  10-5-05

  	
   

  	
   

  
				

 

 

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DENDRITE INTERNATIONAL, INC.

GENERAL TERMS & CONDITIONS OF EMPLOYMENT

(together with
the Specific Terms and Conditions of Employment, the “Agreement”)

 

 

1.             INFORMATION
AND BUSINESS OPPORTUNITY.  During your employment with Dendrite,
you 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. You
shall promptly disclose to Dendrite that information or business opportunity
but shall not disclose it to anyone else without Dendrite’s written consent.

 

2.             DENDRITE AND CLIENT CONFIDENTIAL INFORMATION.
As a result of your employment with Dendrite, you will acquire information
which is proprietary and confidential to Dendrite and its affiliates (“Confidential
Information’’). This Confidential 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 client 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. In addition, Dendrite may be furnished information
and data which is proprietary and confidential to its clients, partners,
suppliers and other third parties (“Third Parties”). You agree to use the
Confidential Information of Dendrite and Third Parties solely during and in
furtherance of your employment with Dendrite. You agree to keep all such
Confidential Information confidential and agree not to 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.

 

Confidential Information shall not include information
which the receiving party can demonstrate: (a) is or becomes available to
the public through no breach of this Agreement; (b) was previously known by the
receiving party without any obligation to hold it in confidence; (c) is
received from a third party free to disclose such information without
restriction; (d) is independently developed by the receiving party without the
use of Confidential Information of the disclosing party; (e) is approved for
release by written authorization of the disclosing party, but only to the
extent of and subject to such conditions as may be imposed in such written
authorization; (f) is required by law or regulation to be disclosed, but only
to the extent and for

 

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the purposes of such required disclosure; or, (g) is disclosed
in response to a valid order of a court and other governmental body of the
United States or any political subdivision thereof, but only to the extent of
and for the purposes of such order; provided, however, that the receiving party
shall first notify the disclosing party of the order and permit the disclosing
party to seek an appropriate protective order.

 

3.             RETURN
OF PROPERTY.  Upon termination of employment for any reason or upon the
request of Dendrite, you shall fully account for and return to Dendrite all
property which you received, prepared or helped prepare in connection with your
employment including, but not limited to, all copies of any confidential
information or records, data, materials, disks, notes, notebooks, blueprints,
client lists or other papers or material in any tangible media or computer readable
form belonging to Dendrite or to any of its clients, partners and suppliers.
You will not retain any copies, duplicates, reproductions or excerpts thereof.

 

4.             INVENTIONS.
All
work performed by you and all materials, products, deliverables, inventions,
software, ideas, disclosures and improvements, and copyrighted material made or
conceived by you, solely or jointly, in whole or in part, during your
employment with Dendrite (even if completed following the termination of your
employment) that relate to any matters pertaining to the business of Dendrite
shall be 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. You agree to give
Dendrite or any person or entity designated by Dendrite reasonable assistance
required to perfect its rights therein.

 

5.            
RESTRICTION ON FUTURE EMPLOYMENT.  You
acknowledge (i) the highly competitive nature of the business and the industry
in which Dendrite competes; (ii) that you will acquire and have access to
confidential information as described in Section 2 of the General Terms; (iii)
that, as a key employee of Dendrite, you will participate in the servicing of
current clients and/or the solicitation of prospective clients, through which,
among other things, you will obtain knowledge of the “know-how” and business
practices of Dendrite, in which matters Dendrite has a substantial proprietary
interest; and (iv) that your employment hereunder
requires the performance of services which are special, unique, extraordinary and
intellectual in character, and your position with Dendrite places you in a
position of confidence and trust with the clients and employees of Dendrite. In
the course of your employment with Dendrite, you 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 your hands in confidence and
trust. You consequently agree that it is reasonable and necessary for the protection
of the confidential information, goodwill and business of Dendrite that you
make the covenants contained herein and that Dendrite would not have entered
into this Agreement unless the covenants set forth in this Section 5 were
contained in this Agreement. Accordingly, you agree that during the period that
you are employed by Dendrite and for a period of eighteen (l8) months
thereafter, you shall not, as an individual, employee, consultant, partner,
shareholder, or in association with any other person, business or enterprise,
except on behalf of

 

6

 

Dendrite, directly or indirectly, and regardless of the
reason for your ceasing to be employed by Dendrite:

 

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

 

(b)           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 your efforts;

 

(c)           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

 

(d)           render to or for any client any
services of the type rendered by Dendrite (unless such services are rendered
directly to a client as an employee of such client, in which case this Section
5(d) shall not apply).

 

As used in this Section 5, the term “Dendrite”
shall mean Dendrite and its affiliates, and the term “client” shall mean (1)
anyone who is a client of Dendrite on the date of your termination or, if your
employment shall not have terminated, at the time of the alleged prohibited
conduct (any such applicable date being called the “Determination Date”), but
only if you solicited, rendered services for, or were otherwise involved with
any such client at any time during your employment with Dendrite; (2) anyone
who was a client of Dendrite at any time during the one (1) year period
immediately preceding the Determination Date; but only if you solicited,
rendered services for, or were otherwise involved with any such client at any
time during your employment with Dendrite; (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; but only if you actively participated in or supervised such
new business presentation (or similar offering of services); 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 your 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 your termination: and only if you 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

 

7

 

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 an eighteen (18) month period
after the termination of your employment for any reason whatsoever, you agree
to promptly notify Dendrite in writing the identity of all subsequent
employers. You agree to provide such information as Dendrite may from time to
time request to determine your compliance with the terms of this Agreement.

 

6.             NON-DISPARAGEMENT.
You
agree that you 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.

 

7.             OUTSIDE CONTRACTING.  You shall not
enter into any agreements during your employment by Dendrite to provide
services to any company, person or organization outside of your employment by
Dendrite (an “Outside Agreement”) without the prior written express consent
from Dendrite. You must notify Dendrite of your intent to enter into an Outside
Agreement specifying therein the other party to such Outside Agreement and the
type of services to be provided by you. Dendrite shall not unreasonably
withhold permission to you 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 you from satisfactorily carrying out all duties assigned to you by
Dendrite. The parties agree that the Advisory Services Agreement between you
and Time Warner Inc. dated January 1, 2001 (“the 2001 Advisory Services
Agreement”) does not constitute a violation of this Agreement and may continue
by its terms until it expires on November 30, 2006. The parties also agree that
you may serve on one Board of Directors of a publicly traded company at any
given time during the duration of this Agreement so long as that company is not
in a business that directly competes with Dendrite and that you disclose this
Board position to Dendrite prior to your acceptance of any such position.

 

8.             REMEDIES.
The
parties agree that in the event you breach or threaten 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 or threatened breach of this Agreement by you,
Dendrite shall have the right to obtain from a court of competent jurisdiction
restraints or injunctions prohibiting you 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 you shall be in addition to any other remedies
which Dendrite may have available to it.

 

9.             ARBITRATION

 

                (a)           If any dispute arises between you and
Dendrite that the parties cannot resolve themselves, including any dispute over
the application, validity, construction, or interpretation of

 

8

 

this Agreement, arbitration in accordance with the
then-applicable employment law 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 your obligation to provide
services under this Agreement and your obligations under Sections 1 through 7
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. This Section 9 shall apply to any
and all claims arising out of your employment and its termination, under state
and federal statutes, local ordinances, and the common law 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, the New Jersey Civil Rights Act
and the New Jersey Law Against Discrimination.

 

                (b)           You have read and understand this
Section 9 which discusses arbitration. You understand that by signing this
Agreement, you agree 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 your employment or the
termination thereof, to binding arbitration, and that this arbitration
provision constitutes a waiver of your right to a jury trial and relates to the
resolution of all disputes relating to all aspects of the employer/employee
relationship. You further understand that other options such as federal and
state administrative remedies and judicial remedies exist and know that by
signing this Agreement those remedies are forever precluded and that regardless
of the nature of your complaint, you know that it can only be resolved by
arbitration.

 

                (c)           Unless the parties agree otherwise,
any arbitration shall be administered by and take place in the offices of the
American Arbitration Association in Somerset, New Jersey. If that office is not
available, the arbitration then the arbitrator shall determine the location of
the arbitration within New Jersey.

 

10.          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 frill 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
provisions will be construed by limiting and reducing them so as to be enforceable
to the maximum extent compatible with applicable law.

 

11.          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:

 

9

 

	
   

  	
  If to you:

  	
  To the address set forth on the first page of this
  Agreement

  
	
   

  	
   

  	
   

  
	
   

  	
  If to Dendrite:

  	
  Attn: General Counsel

  
	
   

  	
   

  	
  Dendrite International. Inc.

  
	
   

  	
   

  	
  1405 Route 206 South

  
	
   

  	
   

  	
  Bedminster, NJ 07921

  

 

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.

 

12.          PRIOR EMPLOYMENT.  You represent and warrant that you
have not taken or otherwise misappropriated and do not have in your possession
or control any confidential and proprietary information belonging to any of
your prior employers or connected with or derived from your service to prior
employers, except as may be necessary to provide services under the 2001
Advisory Services Agreement. You represent and warrant that you have returned
to all prior employers any and all such confidential and proprietary information.
You further acknowledge, represent and warrant that Dendrite has informed you
that you are not to use or cause the use of such confidential or proprietary
information in any manner whatsoever in connection with your employment by
Dendrite. You agree, represent and warrant that you will not use such
information in connection with your employment by Dendrite. You shall indemnify
and hold harmless Dendrite from any and all claims arising from any breach of
the representations and warranties in this Section.

 

13.               MISCELLANEOUS.

 

                (a)           This Agreement shall be governed by
and construed in accordance with the laws of New Jersey, without regard to the
conflicts of laws. Competent courts of jurisdiction in New Jersey shall have
exclusive jurisdiction to entertain any legal or equitable action with respect
to Sections l through 8 of the General Terms except that Dendrite may institute
any such suit against you in any jurisdiction in which you 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 affected upon any party by
delivering it to the last known address.

 

                (b)           Your 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.

 

                (c)           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. 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.

 

10

 

                (d)           This Agreement shall be binding upon
and inure to the benefit of your heirs and personal representatives and to the
successors and assigns of Dendrite.

 

 

 

	
       John Bailye

  	
   

  
	
  on behalf of Dendrite

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Joseph A. Ripp.

  	
   

  

 

11

 

Exhibit A To Dendrite Specific
Terms & Conditions Of Employment

 

                                (a)           “Cause” as used in this Agreement
shall mean (i) any gross misconduct on
the part of you while employed by Dendrite with respect to your duties under
this Agreement, (ii) the engaging by you in an indictable offense while
employed by Dendrite which relates to your duties under this Agreement or which
is likely to have a material adverse effect on the business of Dendrite, (iii)
the commission by you of any willful or intentional act while employed by
Dendrite 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 1
through 7 of the General Terms and Conditions of Employment, or (iv) the
engaging by you through gross negligence in conduct while employed by Dendrite
which injures materially or could reasonably be expected to injure materially
the business or reputation of Dendrite.

 

                                                (b)           “Disability”
as used in this Agreement 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 your customary duties in your 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.

 

                (c)           “Good Reason” as used in this
Agreement shall mean, without your express written consent, the occurrence of
any of the following events which is not corrected within ten (10) days
following written notice of such event given by you to Dendrite:

 

                                                                (i)            the assignment to you of any duties
or responsibilities materially and adversely inconsistent with your position
(including any material diminution of such duties or responsibilities) or (B) a
material and adverse change in your reporting responsibilities, titles or
offices with Dendrite;

 

                                                                                                (ii)           any
material breach by Dendrite this Agreement with respect to the making of any
compensation payments, including without limitation the failure to approve
stock options set forth in the Agreement;

 

                                                                                                (iii)          any
requirement of Dendrite that you be based anywhere other than in a thirty-five
(35) mile radius of the Dendrite office you are based in

 

                                                                                                (iv)          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 you are participating as
of the 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 your participation in or materially
reduce your benefits under such Welfare Plans (other than
an

 

	
   

  	
  Initial here

  	
  JB

  	
   

  

 

 

1

 

 

                                                                                                                                                across-the-board reduction of such
benefits affecting senior executives of Dendrite) unless (i) you are permitted
to participate in other plans providing you 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 you
(determined in relation to your compensation and benefits package), (iii) such
failure or action is taken at the direction of you or with your consent, or
(iv) such failure or action is required by law; or

 

                                                                                                (v)           the
failure of Dendrite to obtain an agreement from a successor employer to assume
Dendrite’s obligations under this Agreement in the event of a Change in
Control.

 

You must notify Dendrite of any event constituting Good Reason within
ninety (90) days following your knowledge of its existence or such event shall
not constitute Good Reason.

 

                (d)           “Change in Control” as used in this
Agreement shall mean 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 and
Exchange Act of 1934, as amended (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 1/3% 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 subsidiary, (B) by any
employee benefit plan sponsored or maintained by Dendrite or any subsidiary, (C)
by any underwriter temporarily holding securities pursuant to an offering of
such securities, (D) pursuant to a Non-Control Transaction (as defined in
subsection (iii)), or (E) a transaction (other than one described in subsection
(iii) below) in which Dendrite Voting Securities are acquired from Dendrite, if
a majority of the Incumbent Board (as defined below) approves a resolution
providing expressly that the acquisition pursuant to this clause (E) does not
constitute a Change in Control under this subsection (i);

 

                                                                                (ii)           individuals who, on the date of this
Agreement, constitute the Board (the “Incumbent Board”) 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 two-thirds of the directors comprising the
Incumbent 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 considered a member of the
Incumbent Board; provided, however, that no individual initially
elected or nominated as a director of Dendrite as a result of an actual or
threatened election contest with respect to directors

 

2

 

                                                or 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 a member of the Incumbent Board;

 

                                                                                (iii)          the shareholders of Dendrite approve a
merger, consolidation, share exchange or similar form of corporate
reorganization of Dendrite or any such type of transaction involving Dendrite
or any of its subsidiaries (whether for such transaction or the issuance of
securities in the transaction or otherwise) (a “Business Combination”),
unless immediately following such Business Combination: (A) more than 50% of the
total voting power of the publicly traded corporation or effective control
resulting from such Business Combination (including, without limitation, any
corporation which directly or indirectly has beneficial ownership of 100% of
Dendrite Voting Securities or all or substantially all of the assets of
Dendrite and its subsidiaries) eligible to elect directors of such corporation
would be represented by shares that were Dendrite Voting Securities immediately
prior to such Business Combination (either by remaining outstanding or being
converted), and such voting power would be in substantially the same proportion
as the voting power of such Dendrite Voting Securities immediately prior to the
Business Combination, and (B) no person (other than any publicly traded holding
company resulting from such Business Combination, any employee benefit plan
sponsored or maintained by Dendrite (or the corporation resulting from such
Business Combination), or any person which beneficially owned, immediately
prior to such Business Combination, directly or indirectly, 33-1/3%
or more of Dendrite Voting Securities (a “Dendrite 33-1/3% Stockholder”)) would
become the beneficial owner, directly or indirectly, of 33-1/3% or more of the
total voting power of the outstanding voting securities eligible to elect
directors of the corporation resulting from such Business Combination and no
Dendrite 33-1/3% Stockholder would increase its percentage of such total voting
power and (C) at least a majority of the members of the board of directors of the
corporation resulting from such Business Combination would be members of the
Incumbent Board at the time of the Board’s approval of the execution of the
initial agreement providing for such Business Combination (a “Non-Control
Transaction”); or

 

                                                                                (iv)          the shareholders of Dendrite approve a
plan of complete liquidation or dissolution of Dendrite or the sale or
disposition 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 1/3% 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 increases the percentage of
outstanding Dendrite Voting Securities beneficially owned by such person, then
a Change in Control of Dendrite shall occur.

 

 

 

3Exhibit 10.8

 

RETIREMENT
AGREEMENT AND GENERAL RELEASE

 

 

This Retirement
Agreement and General Release (the “Agreement”) confirms the following
understandings and agreements between DENDRITE INTERNATIONAL,
INC. (“Employer” or “Dendrite”), and PAUL ZAFFARONI
(“Employee”) concerning Employee’s employment and retirement therefrom.

 

                1.             Employment Status:

 

                                (a)           Unless Employee is sooner terminated
for Cause as defined in the Employee’s Employment Agreement dated as of May 16,
2001 (the “Employment Agreement”)), he will continue to serve as an employee of
Employer through March 31, 2006 and receive his base salary and benefits
through such date.  Employee agrees to
perform his duties in a competent and professional manner through such date,
including but not limited to, devoting his best efforts, skill and ability to
promote the Company’s interests and assisting in an orderly transition of his
former responsibilities for Employer.

 

                                (b)           Commencing on April 1, 2006, Employee
shall continue to render services as the Company may reasonably request.  Unless Employee’s employment is terminated
for “Cause” (as defined in the Employment Agreement), Employee’s last date of
employment with Employer will be the earlier of (i) March 31, 2007 and (ii) the
date Employee secures full-time employment (the “Retirement Date”).  Employee agrees that from the date hereof
through the Retirement Date, he will take all such actions as may be necessary
to transition the management of client accounts in an orderly manner to such
other employees of the Company as may be designated by the Chief Executive
Officer with the view of maintaining the Company’s relationship with such clients after the Employee’s retirement.

 

 

                2.             Payments and Benefits.

 

                                (a)           After March 31, 2006, in the event (i)
Employee is not terminated for Cause, (ii) he complies with his obligations
hereunder and (iii) he re-executes the Agreement after March 31, 2006 as
provided in paragraph 15(e) below, he will be paid his base salary of $475,000
in accordance with normal payroll practices through the Retirement Date.

 

                                (b)                In
the event (i) the Retirement Date occurs prior to March 31, 2006, (ii) Employee
is not terminated for Cause prior to March 31, 2007, (iii) he complies with his
obligations hereunder, and (iv) after the Retirement Date he re-executes this
Agreement as provided in paragraph 15(e) below, Employee will be paid the
remaining unpaid portion of his base salary of $475,000 through March 31, 2007. Such
payments will be made to Employee in accordance with normal payroll practices
and will commence in the payroll period following the eighth day after Employee’s
re-execution of this Agreement as provided in paragraph 15(e).

 

 

                                (c)           Employee will be eligible to continue
to participate in the Executive Incentive Plan for the period through calendar
year 2005, subject to the terms and conditions of such Plan.  Employee shall not be entitled to participate
in the Executive Incentive Plan or any bonus plan in 2006 or thereafter.

 

                                (d)           Employee’s health coverage under the
Employer’s group health plan will terminate on the Retirement Date.  Thereafter, Employee will be provided an
opportunity to continue health coverage for himself and qualifying dependents
under the Employer’s group health plan in accordance with the Consolidated
Omnibus Budget Reconciliation Act (“COBRA”).

 

                                (e)           Through the Retirement Date, Employee
will be eligible to (i) continue vesting in options to purchase stock of
Employer which were previously granted to him, subject to the terms of Dendrite’s
stock option plans, (ii) continue to be eligible to participate in the deferred
compensation plan, subject to the terms and conditions of the deferred
compensation plan, and (iii) continue to be eligible to participate in the
Employer’s 401(k) Plan and Stock Purchase Plan, subject to the terms and
conditions of such plans.  For purposes
of clarification, in the event of a “Change in Control” (as defined in the
Employment Agreement), all of Employee’s options previously granted to him at
the time of such event shall immediately vest and all sale restrictions shall
be lifted.

 

                                (f)            Employee will continue to be
eligible for life insurance coverage under Dendrite’s policy through the
Retirement Date.  As soon as practicable
following the Retirement Date, the ownership of the insurance policy securing
the Employee’s account balance under Dendrite’s nonqualified deferred
compensation plan shall be transferred from Dendrite to the Employee.  Such transfer is conditioned upon obtaining
consent of the insurance company that issued or maintains such policy.  Upon such transfer, Dendrite shall have no
further responsibilities with respect to such policy and the Employee shall be
responsibility for maintaining the policy, including paying applicable premiums
thereunder.

 

(g)           Dendrite will reimburse Employee for
up to $30,000 for the costs already incurred in refinancing his residence in
Pennsylvania (“Refinancing Costs”); provided that Employee provides Dendrite
appropriate documentation and verification of such costs in accordance with
Dendrite policy.

 

(h)                Dendrite will
reimburse Employee for up to $200,000 for relocation costs if Employee
relocates from Pennsylvania on or before December 31, 2006; subject to Dendrite’s
relocation policy and provided that Employee provides Dendrite appropriate
documentation and verification of such relocation costs in accordance with its
policies and further provided that such costs are not eligible to be reimbursed
by any future employer of Employee. If
the relocation described in the preceding sentence does not occur prior to
December 31, 2006, but occurs between January 1, 2007 and March 31, 2007,
Dendrite will reimburse Employee for up to $170,000 for such relocation costs,
subject to the provisions set forth above.

 

2

 

(i)            In
the event of Employee’s death, his estate shall receive the payments set forth
in paragraph 2(b) on the same terms and conditions as set forth therein.  In the event that Employee dies before
re-execution to Agreement as set forth in paragraphs 2(b) and 15(e), Employee’s
estate must re-execute this Agreement on Employee’s behalf in order to receive
the payments in paragraph 2(b).

 

(j)            Except
as otherwise set forth in this Agreement, from and after March 31, 2006,
Employee shall not be entitled to receive any further compensation or monies
from Employer or to receive any benefits or participate in any benefit plan or
program of Employer.

 

                3.             Full Release:  In consideration of the compensation and
benefits provided in paragraph 2 herein, Employee, for himself, his heirs,
executors, administrator, successors, and assigns (hereinafter referred to as
the “Releasors”) hereby fully releases and discharges Employer, and its
subsidiaries, parents, affiliates, successors or assigns together with their
respective officers, directors, employees, agents, insurers, underwriters (all
such persons, firms, corporations and entities being deemed beneficiaries
hereof and are referred to herein as the “Releasees”), from any and all
actions, causes of action, claims, obligations, costs, losses, liabilities,
damages, attorneys’ fees, and demands of whatsoever character, whether or not
known, suspected or claimed, which the Releasors have, or hereafter may have,
against the Releasees by reason of any matter, fact or cause whatsoever from
the beginning of time to the Effective Date of this Agreement, including,
without limitation, all claims arising out of or in any way related to Employee’s
employment or the termination of his employment.  Nothing in this paragraph 3 shall affect any
of Employee’s rights to indemnification under the Indemnification Agreement
dated October 1, 2001 (the “Indemnification Agreement”).

 

                                This Agreement
of Employee shall be binding on the executors, heirs, administrators,
successors and assigns of Employee and shall inure to the benefit of the
respective executors, heirs, administrators, successors and assigns of the
Releasees.

 

                4.             Confidentiality:  Employee agrees that the terms of this
Agreement have been and shall be held strictly confidential by him and his
attorneys and accountants, and that he shall not, and shall instruct his
attorneys and accountants not to disclose any such information, orally or in
writing, to anyone else, including without limitation, any past, present or
future employee or agent of the Employer. 
Employee recognizes that, in the event he or his attorneys disclose any
information contrary to the confidentiality provisions of this Agreement, any
such disclosure would be a material breach of the Agreement for which the
Employer shall be entitled to cease making any payments or providing any
benefits under paragraph 2, in addition to its other remedies in law, equity,
and under this Agreement.  For the sake
of clarity, it shall not be a breach of this paragraph in the event that a
third party obtains the terms of this Agreement by virtue of Dendrite
disclosing the terms of this Agreement in its public filings.

 

                5.             Return of Property:  Upon termination of Employee’s employment or
at any time upon the request of Employer, Employee agrees to return to Employer
all property which Employee received, prepared or helped to prepare in
connection with his employment including, but not limited to, all confidential
information and all disks, notes, notebooks, blueprints, 

 

3

 

customer lists or
other papers or material in any tangible media or computer readable form
belonging to Employer or any of its customers, clients or suppliers, Employee
agrees he will not retain any copies, duplicates or excerpts of any of the
foregoing materials.  If Employee fails
to comply with his obligations under this paragraph 5, Employer will have no
obligation to provide payments or benefits pursuant to paragraph 2.

 

                6.             Non-Disparagement:
Employee agrees that he will not at any time make any statements or communicate
any information (whether oral or written) that disparages or reflects
negatively on the Employer or any of the Releasees.

 

                7.             No Effect on Duties,
Obligations or Restrictions Contained in Employment Agreement:  This Agreement does not amend, modify, waive
or affect in any way Employee’s duties, obligations or restrictions under
Sections 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 22, 24 and 25 of
the Employment Agreement.  In further
consideration of this Agreement, such Sections are hereby incorporated by
reference and Employee agrees to abide by such provisions.  For purposes of clarification the two year
post-employment restrictions set forth in Section 11 of the Employment
Agreement shall commence two years from the Retirement Date.

 

                8.             Releasees’ Express Denial
of Liability:  The payment
by the Releasees of the amount specified herein above shall not be deemed an
admission that any liability of the Releasees exists, and in making such
payment Releasees do not admit, and expressly deny, any liability.

 

                9.             Waiver of Rights Under
Other Statutes:  Employee
understands that this Agreement includes the waiver of claims and rights
Employee may have under other applicable statutes, including without
limitation, Title VII of the Civil Rights Act of 1964; the Civil Rights Act of
1991; the Employee Retirement Income Security Act; the Equal Pay Act; the
Rehabilitation Act of 1973; the Americans with Disabilities Act; the Age
Discrimination in Employment Act; the Family and Medical Leave Act; the New
Jersey Family Leave Act; the New Jersey Law Against Discrimination; the Fair
Labor Standards Act; the New Jersey Wage and Hour Act; and/or the New Jersey Conscientious
Employee Protection Act, and any and all amendments to any of same.

 

                10.           Waiver of Rights Under the
Age Discrimination Act: 
Employee understands that this Agreement, and the release contained
herein, waives claims and rights Employee might have under the Age
Discrimination in Employment Act (“ADEA”). 
The monies and other benefits offered to Employee in this Agreement are
in addition to any sums or benefits that Employee would be entitled without
signing this Agreement.  For a period of
seven (7) days following execution of this Agreement, Employee may revoke the
terms of this Agreement by a written document received by Employer on or before
the end of the seven (7) day period (the “Effective Date”).  The Agreement will not be effective until said
revocation period has expired.  Employee
acknowledges that he has been given up to twenty-one (21) days to decide
whether to sign this Agreement.  Employee
has been advised to consult with an attorney prior to executing this Agreement.

 

4

 

                11.           No Suit:  Employee represents that he has not filed or
permitted to be filed against the Employer or any of the other Releasees,
individually or collectively, any lawsuits, and he covenants and agrees that he
will not do so at any time hereafter with respect to the subject matter of this
Agreement and claims released pursuant to this Agreement, except as may be
necessary to enforce this Agreement or to challenge the validity of the release
of his rights under the ADEA.  Except as
otherwise provided in the preceding sentence, Employee will not voluntarily
participate in any judicial proceeding against any of the Releasees that in any
way involve the allegations and facts that he could have raised against any of
the Releasees in any forum as of the date hereof.  Employee agrees that he will not encourage or
cooperate with any other current or former employee of Employer or any
potential plaintiff to commence any legal action or make any claim against the
Employer or against the Releasees in respect of such persons employment with
the Employer or otherwise.

 

                12.           Remedies:  In the event Employee breaches any of the
provisions of this Agreement (and in addition to any other legal or equitable
remedy it may have), the Employer shall be entitled to cease making any
payments or providing any benefits to Employee under paragraph 2 of this
Agreement, recover any payments made to Employee or on his behalf under
paragraph 2 (except two weeks’ pay).  In the event of an action to enforce this
Agreement, in addition to any other legal or equitable remedies, the prevailing
party in any such action shall be entitled to its attorney’s fees and costs
incurred in any such action.    The remedies set forth in this paragraph 12
shall not apply to any challenge to the validity of the waiver and release of
Employee’s rights under the ADEA.  In the
event Employee challenges the validity of the waiver and release of his rights
under the ADEA, then Employer’s right to attorney’s fees and costs shall be
governed by the provisions of the ADEA, so that Employer may recover such fees
and costs if the lawsuit is brought by Employee in bad faith.  Nothing herein shall affect in any way any of
Employee’s obligations under this Agreement, including, but not limited to, his
release of claims under paragraphs 3, 9 and 10. 
Employee further agrees that nothing in this Agreement shall preclude
Employer from recovering attorneys’ fees, costs or any other remedies
specifically authorized under applicable law.

 

                13.           Cooperation.  Employee agrees to cooperate with Employer
and its counsel in connection with any investigation, administrative proceeding
or litigation relating to any matter in which he was involved or of which he
has knowledge as a result of his employment with Employer.  Employer agrees to reimburse Employee for the
reasonable and necessary out-of-pocket expenses incurred by him in connection
with his obligations under this paragraph 13.

 

                14.           Entire Agreement:  This Agreement sets forth the entire agreement
between the parties relating to the subject matter hereof and supersedes the
Employment Agreement, except for any stock option agreements, the
Indemnification Agreement, and as otherwise expressly set forth in this
Agreement.  This Agreement may not be
changed orally but changed only in a writing signed by both parties.

 

5

 

                15.           Miscellaneous:

 

                                (a)           This Agreement shall be governed in
all respects by laws of the State of New Jersey.

 

                                (b)           In the event that any one or more of
the provisions of this Agreement is held to be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining
provisions will not in any way be affected or impaired thereby.  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 provisions will be construed by
limiting and reducing them so as to be enforceable to the maximum extent
compatible with the applicable law.

 

                                (c)           The paragraph headings used in this
Agreement are included solely for convenience and shall not affect or be used
in connection with the interpretation of this Agreement.

 

                                (d)           Employee represents that in executing
this Agreement, he has not relied upon any representation or statement, whether
oral or written, not set forth herein.

 

                                (e)           In order to be entitled to the
payments and benefits set forth in paragraph 2 above, Employee must re-execute
this Agreement on the earlier of the date he (i) obtains alternate full-time
employment or (i) April 1, 2006.  If this
General Release is not re-executed or subsequently revoked as provided herein,
Employer will not be obligated to make the payments and benefits set forth in
paragraph 2.  This in no way affects
Employee’s prior release of claims under this Agreement.  Within seven (7) days of re-executing this
Agreement, Employee will have the right to revoke such re-execution of this
Agreement.  In the event Employee revokes
his re-execution of this Agreement, Employer will have no obligation to provide
the payments and benefits set forth in paragraph 2.  By Employee’s re-execution of this Agreement,
the release set forth in paragraphs 3, 9 and 10 shall be deemed to cover any
claims which he has, may have had, or thereafter may have existing or occurring
at any time on or before the date which he re-executes this Agreement.

 

                                (f)             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.

 

6

 

IN WITNESS THEREOF, Employer and Employee have executed this Retirement
Agreement and General Release on this 4th day of November, 2005.

 

	
   

  	
  DENDRITE
  INTERNATIONAL, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  CHRISTINE A.
  PELLIZZARI

  
	
   

  	
   

  
	
   

  	
  Date: 

  	
  November 4, 2005

  
	
   

  	
   

  
	
   

  	
  PAUL
  ZAFFARONI

  
	
   

  	
   

  
	
   

  	
  PAUL ZAFFARONI

  
	
   

  	
   

  
	
   

  	
  Date: 

  	
  November 2, 2005

  
	
   

  	
   

  
	
   

  	
  Re-Executed:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Date: 

  	
   

  
				

 

 

7

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