Document:

Exhibit 10.1

 

DENDRITE INTERNATIONAL, INC. NEW
HIRE AUTHORIZATION

 

As a technology
and services company, non-qualified stock options, restricted stock, restricted
stock units, and other equity awards (collectively, “Awards”) may constitute an
essential inducement for individuals not previously employed by the Company or
following a bona-fide period of non-employment (“new hires”) to accept
employment with the Company or its subsidiaries.

 

The Compensation
Committee of the Board of Directors (the “Committee”) may therefore grant
Awards to new hires under this New Hire Authorization (this “Plan”) pursuant to
and in accordance with the requirements of NASDAQ Rule 4350(i) or any
subsequent successor NASDAQ rule permitting such new hire grants without shareholder approval, or, if the Company is then
listed on a securities exchange other than NASDAQ, then any similar rule permitting
new hire grants without shareholder approval promulgated by such other exchange
(the “New Hire Rules”).

 

Awards for up to
an aggregate of 3,000,000* shares of Common Stock (inclusive of previous Awards
granted under this Plan) are authorized under this Plan, as such number of
shares may be adjusted under this Plan and subject to this Plan’s “share
counting rules”.

 

The terms and
conditions of Awards shall generally be the same as for similar Awards granted
under the Dendrite International, Inc. 1997 Stock Incentive Plan,
including any amendment thereof or successor plan thereto (the “Incentive Plan”),
except as otherwise approved by the Committee and shall otherwise comply with
current or future SEC and applicable NASDAQ or other applicable securities
exchange rules regarding shareholder approval including, if necessary,
approval by a compensation committee consisting solely of independent directors
or approval by a majority of the Company’s independent directors.  For stock options, the option exercise price
will be the Fair Market Value of the Company’s Common Stock on the date of the
grant.

 

For purposes of
this Plan, the terms and provisions of the following sections of the Incentive
Plan shall be identical to and incorporated into this Plan by reference:  Section 2 (except that “Participant”
shall mean “new hires” as selected by the Committee under this Plan; “Fair
Market Value” shall refer to the fair market value on the principal securities
exchange or securities listing for the Common Stock at the time of grant; and “Options”
shall refer exclusively to non-qualified stock options), Sections 4, 6, 7(c) through
(e), 8, and 11 through 19.

 

The settlement of
any Award may be accelerated, and cash paid in lieu of Common Stock in
connection with such settlement, in the discretion of the Committee or upon the
occurrence of one or more events specified by the Committee in the award
agreement or subsequently.  Further, in
the event any merger, consolidation or other similar corporate transaction or
event affecting the Common Stock occurs such that an adjustment is determined
by the Committee to be appropriate under this Plan, then the Committee may, in
such manner as it may deem equitable, adjust any or all of the exercise price,
grant price or purchase price relating to any Award or, if it deems it
appropriate, the Committee may make provision for a payment of cash or property
to the holder of an outstanding Award.

 

The Awards under
this Plan are not subject to the Employee Retirement Income Security Act of
1974, as amended.

 

* This aggregate number of authorized shares under this Plan includes
the increase by 1,500,000 shares added by resolution of the Board of Directors
on September 15, 2005.Exhibit 10.2

 

DENDRITE INTERNATIONAL, INC.

NEW HIRE GRANT AUTHORIZATION

NOTICE OF STOCK OPTION AWARD

 

Optionee’s Name and Address:

 

You have been granted an option (“Options”) to purchase shares of
Common Stock of Dendrite International, Inc. (the “Company”) pursuant to
the Dendrite International, Inc. New Hire Grant Authorization (the “New
Hire Plan”), subject to the terms and conditions of this Notice of Stock Option
Award (the “Notice”), and the attached Stock Option Agreement (the “Option
Agreement”), as follows:

 

	
  Date of Award

  
	
   

  
	
  Total Number of Shares Subject to the Option (the
  “Shares”)

  
	
   

  
	
  Exercise Price per Share

  
	
   

  
	
  Type of Option:

  	
  Non-Qualified Stock Options

  
	
   

  
	
  Option Expiration Date:

  

 

Basis of Option Grant; Terms and Conditions Applicable
to Option Award:

 

The options have been granted to the Optionee by the Board of Directors
of the Company under the New Hire Plan pursuant to NASDAQ Manual Rule 4350(i). 
The Options are not granted under the Dendrite International, Inc. 1997
Stock Incentive Plan, as amended (the “1997 Plan”).  However, the same
terms and conditions of the 1997 Plan as applicable to non-qualified stock
options awarded under the 1997 Plan shall equally apply to these Options,
except only as otherwise specifically set forth in this Notice.

 

Vesting Schedule:

 

Subject to limitations set forth in this Notice, the 1997 Plan and the
Stock Option Agreement, the Options shall become exercisable only as follows:

 

[Insert vesting schedule]

 

The Optionee acknowledges receipt of a copy of the Option Agreement,
the 1997 Plan, and a prospectus with respect to the Options and the shares of
Common Stock into which the Options may be converted (the “Prospectus”) and
represents that he or she is familiar with the terms and provisions thereof and
hereby accepts the Options subject to all of the terms and provisions hereof
and thereof. The Optionee has reviewed this Notice, the 1997 Plan, the Option
Agreement and the Prospectus in their entirety, has had an opportunity to
obtain the advice of counsel prior to executing this Notice, and fully
understands all provisions of this Notice, the Option Agreement, the 1997 Plan,
and the Prospectus. The Optionee hereby agrees to accept as binding, conclusive
and final all decisions or interpretations of the administrators of the 1997
Plan upon any questions arising under this Notice, the 1997 Plan or the Option
Agreement. The Optionee further agrees to notify the Company upon any change in
the residence address indicated in this Notice.

 

 

IN WITNESS WHEREOF, the Company and the Optionee have executed this
Notice and agree that the Option is to be governed by the terms and conditions
of this Notice, including the terms and conditions of the 1997 Plan applicable
to non-qualified stock options as incorporated herein, and the Stock Option
Agreement.

 

 

	
   

  	
  By:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signed:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Dated:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: DENDRITE INTERNATIONAL, INC.

  
	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

 

NONQUALIFIED STOCK OPTION
AGREEMENT

UNDER THE DENDRITE INTERNATIONAL, INC.

NEW HIRE AUTHORIZATION

 

THIS AGREEMENT, made this
     day of
                ,
          by and between Dendrite
International, Inc., a New Jersey corporation (the “Company”), and
                          
(the “Optionee”).

 

W I  T  N  E  S
S  E  T  H:

 

WHEREAS, the Company desires to afford the Optionee
the opportunity to acquire, or enlarge, his ownership of the Company’s common
stock, no par value per share (“Common Stock”), so that he may have a direct
proprietary interest in the Company’s success; and

 

WHEREAS, the Board of
Directors of the Company has granted options to the Optionee under the Dendrite
International, Inc. New Hire Authorization (the “New Hire Plan”) pursuant to NASD Rule 4350(i) as
an inducement essential to the Optionee’s entering into an employment contract
with the Company; and

 

WHEREAS, such options shall be granted under
the New Hire Plan and the same terms and conditions of the 1997 Plan (as
defined below) applicable to non-qualified stock options awarded under the 1997
Plan shall equally apply to these options;

 

NOW, THEREFORE, in consideration of the
covenants and agreements herein contained, the parties hereto hereby agree as
follows:

 

1.             Grant of Option.  Subject to the
terms and conditions set forth herein and in the New Hire Plan, and subject to
the terms and conditions as applicable to non-qualified options (including the
provisions relating to administration) set forth in the Dendrite International, Inc.
1997 Stock Incentive Plan (“1997 Plan”), which are hereby incorporated into
this Agreement by reference, the Company hereby grants to the Optionee, during
the period commencing on the date of this Agreement and ending on the close of
business on the day of the tenth anniversary of the date hereof (the “Termination
Date”), the right and option (the right to purchase any one share of Common
Stock hereunder being an “Option”) to purchase from the Company, an aggregate
of        shares of Common Stock (the “Option
Shares”), at the price per share (the “Option Price”) and subject to the
vesting schedule all as set forth in the Notice of Stock Option Award that
accompanies this Agreement.

 

2.             Termination of Employment.  Any
Options held by the Optionee upon termination of Optionee’s service as an
employee shall remain exercisable as follows:

 

(i)  If the Optionee’s
termination of employment is due to death, all unvested Options shall terminate
on the date of death and all vested Options shall be exercisable by the
Optionee’s designated beneficiary, or, if none, the person(s) to whom such
Optionee’s rights under the Option are transferred by will or the laws of
descent and distribution for 180 days following the date of death (but in no
event beyond the term of the Option), and shall thereafter terminate;

 

(ii)  If the Optionee’s
termination of employment is due to permanent disability (as determined by the
Committee or the Board) all unvested Options shall terminate on the date of
termination and all vested Options shall be exercisable for 180 days following
such termination of service (but in no event beyond the term of the Option),
and shall thereafter terminate;

 

 

(iii)  If the Optionee’s
termination of employment is for cause (as determined by the Committee or the
Board), the Option shall terminate upon such termination of Optionee’s service
as an employee, regardless of whether the Option was then exercisable; and

 

(iv)  If the Optionee’s
termination of employment is for any other reason, all unvested Options shall
terminate on the date of termination and all vested Options (to the extent
exercisable as of the date of termination) shall be exercisable for a period of
90 days following such termination of employment (but in no event beyond the
term of the Option), and shall thereafter terminate.  An Optionee’s status
as an employee shall not be considered terminated in the case of a leave of
absence agreed to in writing by the Company (including, but not limited to,
military and sick leave); provided, that, such leave is for a
period of not more than 90 days or re-employment upon expiration of such leave
is guaranteed by contract or statute.

 

3.             Method of Exercising Option.  (a) 
Options to the extent vested and exercisable may be exercised, in whole or in
part, by giving written notice of exercise to the Company specifying the number
of shares of Common Stock to be purchased.  Such notice shall be
accompanied by the payment in full of a sum equal to the product of (A) the
number of shares of Common Stock to be purchased, times (B) the Option
Price.  Such payment shall be made:  (a) in cash, or (b) by
surrender of shares of Common Stock owned by the holder of the Option
(including shares of Common Stock otherwise receivable upon exercise of the
Option), or (c) through simultaneous sale through a broker of shares
acquired on exercise, as permitted under Regulation T of the Federal Reserve
Board, or (d) through additional methods prescribed by the Committee or
the Board, or (e) by a combination of any such methods.

 

(b)           At the time of exercise, the Optionee shall pay to the
Company such amount as the Company deems necessary to satisfy its obligation to
withhold federal, state or local income or other taxes incurred by reason of
the exercise or the transfer of shares thereupon by tendering to the Company a
check in the amount of such withholding or by electing to have withheld upon exercise,
shares of Common Stock having a Fair Market Value equal to the amount of such
tax withholding.

 

4.             Issuance of Shares.  As promptly
as practical after receipt of such written notification of exercise and full
payment of the Option Price and any required income tax withholding, the
Company shall issue or transfer to the Optionee the number of Option Shares
with respect to which Options have been so exercised (less shares withheld in
satisfaction of tax withholding obligations, if any), and shall deliver to the
Optionee a certificate or certificates therefor, registered in the Optionee’s
name.

 

5.             Company; Optionee.  (a)  The
term “Company” as used in this Agreement with reference to employment shall
include the Company and its Subsidiaries, as appropriate.

 

(b)           Whenever the word “Optionee” is used in any provision of
this Agreement under circumstances where the provision should logically be
construed to apply to the beneficiaries, the executors, the administrators, or
the person or persons to whom the Options may be transferred by will or by the
laws of descent and distribution, the word “Optionee” shall be deemed to
include such person or persons.

 

6.             Forfeiture.  In consideration of
the granting of Options pursuant to this Agreement, the Optionee hereby agrees
that notwithstanding anything in this Agreement or in the terms and conditions
of the 1997 Plan (as incorporated herein by reference) to the contrary, in the
event of:

 

(i) a serious breach of
conduct by the Optionee (including, without limitation, any conduct prejudicial
to or in conflict with the Company or its Subsidiaries, or any material breach
by the Optionee of any Company policy or any material breach by Optionee of the
obligations set forth in the Company’s employee handbook), or

 

(ii) a
breach by the Optionee of any employment agreement between the Optionee and the
Company, or

 

 

(iii) a breach by the
Optionee of any written agreement not to compete with the Company or a breach
by the Optionee of any confidentiality agreement with the Company or a breach
by the Optionee of any covenant against soliciting Company employees,

 

then (a)  all
outstanding Options granted to such Optionee, in whole or in part, whether
vested or not vested, shall be cancelled and/or (b) if such conduct or
activity occurs within one year following the exercise of an Option, such
Optionee shall be required to repay to the Company any gain realized upon the
exercise of such Options (with such gain valued as of the date of
exercise).  Such cancellation or repayment obligation shall be effective
as of the date specified by the Committee or the Board.  Any repayment
obligation may be satisfied in Common Stock or cash or a combination thereof
(based upon the Fair Market Value of Common Stock on the day prior to the date
of payment) and the Committee or the Board is hereby permitted and expressly
authorized by the Optionee to offset against any future payments owed by the
Company or any Subsidiary to the Optionee (including any salary, bonus,
severance or other compensation) to satisfy the repayment obligation.  The
determination of whether the Optionee has engaged in a serious breach of
conduct or has breached his or her employment agreement shall be determined by
the Committee or the Board in good faith.  This Section 6 shall have
no application following a Change in Control.

 

Optionee agrees to reimburse the Company for
all costs and expenses (including, without limitation, court costs and the
reasonable fees and expenses of attorneys) incurred by the Company in
connection with any action by the Company seeking to enforce this Section 6.

 

7.             Non-Transferability.  The Options
are not transferable by the Optionee other than to a designated beneficiary
upon death or by will or the laws of descent and distribution, and are exercisable
during the Optionee’s lifetime only by the Optionee.  No assignment or
transfer of the Options, or of the rights represented thereby, whether
voluntary or involuntary, by operation of law or otherwise (except to a
designated beneficiary, upon death, by will or the laws of descent and
distribution), shall vest in the assignee or transferee any interest or right
herein whatsoever, but immediately upon such assignment or transfer the Options
shall terminate and become of no further effect.

 

8.             Change in Control.  Upon the
occurrence of a Change in Control, all Options shall automatically become
vested and immediately exercisable in full and all restrictions on any sale or
other transfer of the shares of Common Stock underlying such Option or received
on exercise of such Option shall automatically lapse.

 

9.             Rights as Shareholder.  The
Optionee or a transferee of the Options shall have no rights as shareholder
with respect to any Option Shares until he/she becomes the holder of record of
such shares, and no adjustment shall be made for dividends or distributions or
other rights in respect of such shares of Common Stock for which the record
date is prior to the date upon which the Optionee or transferee becomes the
holder of record thereof.

 

10.           Adjustments.  In the event of any
change in the outstanding shares of Common Stock by reason of any stock
dividend or split, recapitalization, merger, consolidation, spinoff,
combination or exchange of shares or other corporate change, or any
distribution to holders of Common Stock other than regular cash dividends, the
number or kind of shares subject to Options under this Agreement may be
adjusted by the Committee or the Board as it shall in its discretion deem
equitable and the number and kind of shares subject to any outstanding Options
granted hereunder and the purchase price thereof may be adjusted by the
Committee or the Board as it shall deem equitable to preserve the value of such
Options.

 

11.           Compliance with Law. 
Notwithstanding any of the provisions hereof, the Optionee hereby agrees not to
exercise the Options, and that the Company will not be obligated to issue or
transfer any shares to the Optionee hereunder, if the exercise hereof or the
issuance or transfer of such shares shall constitute a violation by the
Optionee or the Company of any provisions of any law or regulation of any
governmental

 

 

authority.  Any determination in this connection
by the Committee or the Board shall be final, binding and conclusive.  The
Company shall in no event be obliged to register any securities pursuant to the
Securities Act of 1933 (as now in effect or as hereafter amended) or to take
any other affirmative action to cause the exercise of the Options or the
issuance or transfer of shares pursuant thereto to comply with any law or
regulation of any governmental authority.

 

12.           Notice.  Every notice or other
communication relating to this Agreement shall be in writing, and shall be
mailed, physically delivered or electronically delivered (with verification of
receipt) to the party for whom it is intended at such address as may from time
to time be designated in a notice mailed, physically delivered or
electronically delivered (with verification of receipt) to the other party as
herein determined; provided, that, unless and until some other
address be so designated, all notices or communications by the Optionee to the
Company shall be mailed, physically delivered or electronically delivered (with
verification of receipt) to the Company at its principal executive office, to the
Attention of the Office of General Counsel
at            ;
e-mail
address              ,
and all notices or communications by the Company to the Optionee may be (1) given
to the Optionee personally, (2) mailed to the Optionee’s address as
recorded in the records of the Company or (3) electronically delivered to
the Optionee at the e-mail address issued to such Optionee by the Company or to
the Optionee’s fax number as recorded in the records of the Company.

 

13.           Nonqualified Stock Options.  The
Options granted hereunder are not intended to be incentive stock options within
the meaning of Section 422 of the Code.

 

14.           Binding Effect.  Subject to Section 5
hereof, this Agreement shall be binding upon the heirs, executors,
administrators and successors of the parties hereto.

 

15.           Governing Law.  This Agreement
shall be construed and interpreted in accordance with the laws of the State of
New Jersey, without giving effect to conflicts of laws principals.

 

16.           Venue and Jurisdiction; Waiver of Jury Trial.  Any claim brought by the Optionee
arising out of or in connection with this Agreement or the New Hire or 1997
Plan (as incorporated herein by reference), the subject matter thereof, or the
performance or non-performance of any obligation thereunder (other than a
counterclaim maintained by the Optionee in an action originally brought by the
Company), shall be brought in either the state or federal courts located in the
State of New Jersey.  The Optionee hereby irrevocably submits to the
jurisdiction of each of the state or federal courts located in the State of New
Jersey for the purposes of any suit, civil action or other proceeding (“Suit”)
arising out of or in connection with this Agreement or the New Hire or 1997
Plan, the subject matter thereof, or the performance or non-performance of any
obligation thereunder.  The Optionee hereby waives and agrees not to
assert by way of motion, as a defense or otherwise in any such Suit, any claim
that he or she is not subject to the jurisdiction of the state or federal courts
located in the State of New Jersey, that such Suit is brought in an
inconvenient forum, or that the venue of such Suit is improper.  The
Optionee hereby consents to service of process by first-class mail with respect
to any action brought by the Company against the Optionee arising out of or in
connection with this Agreement or the New Hire or 1997 Plan.

 

THE
OPTIONEE HEREBY WAIVES ANY TRIAL BY JURY WITH RESPECT TO ANY CLAIM ARISING OUT
OF OR IN CONNECTION WITH THE AGREEMENT OR THE NEW HIRE OR 1997 PLAN, THE
SUBJECT MATTER THEREOF, OR THE PERFORMANCE OR NON-PERFORMANCE OF ANY OBLIGATION
THEREUNDER.

 

17.           1997 Plan.  The terms and
provisions of the 1997 Plan, as applicable to non-qualified options are
incorporated herein by reference, and the Optionee hereby acknowledges
receiving a copy of the 1997 Plan.  Capitalized terms not defined in this
Agreement shall have the meaning ascribed to them as set forth in the 1997
Plan.  In the event of a conflict or inconsistency between discretionary
terms and provisions of the 1997 Plan as so incorporated herein by reference
and the express provisions of this Agreement, this Agreement

 

 

shall govern and control.  In all other
instances of conflicts or inconsistencies or omissions, the terms and
provisions of the 1997 Plan as incorporated herein shall govern and control.

 

IN WITNESS WHEREOF, the parties hereto have
executed this Agreement as of the day and year first above written.

 

 

	
  DENDRITE INTERNATIONAL,
  INC.

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  
	
   

  
	
  NAME OF OPTIONEE:

  
	
   

  
	
   

  
	
  By:

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