Document:

Exhibit
10.5

 

AMENDMENT

 

THIS AMENDMENT is
made as of February 13, 2006 and amends the Employment Agreement dated as
of September 26, 2000, and as amended as of February 25, 2005 (the “Employment
Agreement”) between DENDRITE INTERNATIONAL, INC.
(“Dendrite”) and NATASHA GIORDANO (“Employee”). Unless
defined in this Amendment, capitalized terms used in this Amendment will have
the meaning set forth in the Employment Agreement.

 

WHEREAS, the Company and the Employee are
parties to the Employment Agreement and wish to amend the Employment Agreement;
and

 

WHEREAS, the Company considers it essential
to the best interests of its shareholders to foster the continuous employment
of key management; and

 

WHEREAS, the Compensation Committee of the
Board of Directors recognizes that, as is the case with many publicly held
corporations, the possibility of a Change of Control always exists and that
such possibility, and the uncertainty it may raise among management, may result
in the departure or distraction of key management personnel, to the detriment
of the Company and its shareholders; and

 

WHEREAS, the Compensation Committee of the
Board has determined that appropriate steps should be taken to reinforce and
encourage the continued attention and dedication of key members of the Company’s
management, including the Employee, to their assigned duties without
distraction in the face of potentially disturbing circumstances arising from
the possibility of any such Change of Control;

 

NOW, THEREFORE, in consideration of the premises
and mutual covenants contained in this Amendment, the Company and the Employee
agree as follows:

 

1.                                       Section 27(a) of
the Employment Agreement is restated in its entirety to provide as follows:

 

“(a)  Notwithstanding any other provisions of
this Employment Agreement, the following severance payment only applies in the
event of a Change in Control. If Employee’s employment is terminated within one
(1) year following a Change in Control (i) by Dendrite for any reason
other than death, Cause, or Disability or (ii) by Employee for Good
Reason, the Employee shall be entitled to receive a lump sum severance payment
equal to the sum of twenty-four (24) months base salary (calculated at the
highest base salary rate in effect during the 12 month period preceding the
termination of employment) plus two (2) times the Employee’s target bonus.
The severance payment to be paid to Employee under this Section 27(a) is
referred to as the “Change in Control Severance Payment”. Employee’s Change In
Control Severance Payment shall be paid by Dendrite in cash not later than
twenty (20) days after the effective date of the termination of the Employee’s
employment, subject to the receipt by Dendrite of the separation agreement and
general release as described in this Employment Agreement and the expiration of
the required seven day waiting period. No interest shall accrue or be payable
on or with respect to any Change in Control Severance Payment, except only as
otherwise expressly

 

 

set forth in this
Amendment. In the event of a termination of Employee’s employment described in
this Section, Employee shall be provided continued “COBRA” coverage pursuant to
Sections 601 et seq. of ERISA (or COBRA-like
coverage, if COBRA does not or would no longer apply) under Dendrite’s group medical
and dental plans for the twenty-four (24) month period commencing on the date
of termination of employment. During the period in which Employee receives such
coverage, Employee’s cost of 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, the payment of COBRA coverage by Dendrite as
described above shall cease (even if the Employee is entitled under COBRA to
continue to participate in Dendrite’s group medical and dental plans).

 

If Employee’s employment is terminated by
Dendrite as described in this Section 27(a), in addition to the above
Change in Control Severance Payment, Employee will be entitled also to receive Employee’s
target bonus for the year in which employment is so terminated, assuming such
bonus has not previously been paid, which will be pro-rated to reflect the
percentage of days of the year during which Employee performed services for
Dendrite and which shall also be considered to be a Change in Control Severance
Payment.

 

In the event of a Change in Control all stock options
and restricted stock or other outstanding equity awards granted to Employee by Dendrite
will immediately vest and all contractual sale conditions will be lifted.

 

In the event Employee is entitled to the Change in
Control Severance Payment as set forth in this Section 27(a), Employee
shall not be entitled to any other severance payments from Dendrite, under this
Employment Agreement or otherwise.”

 

In addition, due to the lump sum severance
payment to be made hereunder, Section 27(b) of the Employment
Agreement is amended by deleting the second sentence of such section in
its entirety.

 

In addition, the Employment Agreement is
amended by inserting the following after Section 27(e):

 

“(f)                              Notwithstanding anything
else herein to the contrary, in the event that the Company’s certified public
accountants (or another certified public accounting firm, if the Company’s
certified public accountants may not provide such service due to
independence or other considerations) (the “Accountants”) determine that any
actual or potential payment or distribution by the Company to or for the
benefit of the Employee (whether paid, payable, distributed or distributable to
the Employee, whether under this Agreement or otherwise) (a “Payment”) would
likely subject the Employee to the imposition of an excise tax under Section 4999
of the Code (or any similar successor provision) (“Section 4999”), then
the Compensation Committee of the Company’s Board of Directors, in its sole
discretion, may determine and agree to, but need not,

 

 

(1)                                  reduce (but not below zero) the Change in
Control Severance Payment to the Reduced Amount. For this purpose, the “Reduced
Amount” shall be an amount which is designed and calculated to maximize the
Change in Control Severance Payment without causing any Payment to be subject
to the excise tax under Section 4999; 
or

 

(2)                                  pay to the Employee an amount (the “Tax
Gross-Up Payment”), to be calculated by the Accountants, designed and
calculated to fully negate the tax impact of any excise tax imposed (or to be
imposed) upon the Employee as a result of Section 4999. Any such Tax
Gross-Up Payment will take into account the federal, state and local income,
employment and excise tax consequences of the Tax Gross-Up Payment, including
the additional impact of Section 4999 on the Tax Gross-Up Payment itself.”

 

2.                                       Notwithstanding
anything in this Amendment or in the Employment Agreement to the contrary, any
severance payment under the Employment Agreement may be delayed, for no
more than six (6) months following termination of employment, pursuant to Section 409A
of the Internal Revenue Code (the “Code”), and, to the extent any delay in
severance payment is attributable to Code Section 409A, interest on such
severance payment shall accrue from the date otherwise scheduled for such
payment under the terms of this Employment Agreement until the date of actual
payment at an annual rate of six percent (6%).

 

3.                                       For purposes of Section 27(a) of
this Employment Agreement, “target bonus” means the annual target bonus
established for the Employee for the fiscal year in which the Employee’s
employment terminates, or if the annual target bonus has not been established
for the Employee for such fiscal year, then the annual target bonus for the
prior fiscal year shall be used; provided that,
in connection with a Change in Control Severance Payment, in no event shall
target bonus be less than the annual target bonus most recently established for
the Employee prior to the occurrence of the Change in Control.

 

4.                                       Except as
expressly modified by this Amendment, all of the terms and conditions of the
Employment Agreement shall remain in full force and effect.

 

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

 

	
   

  	
  DENDRITE INTERNATIONAL, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CHRISTINE PELLIZZARI

  	
   

  
	
   

  	
  Name:

  	
  Christine Pellizzari

  
	
   

  	
  Title:

  	
  Senior Vice President, General Counsel

  and Secretary

  
	
   

  	
   

  
	
   

  	
  NATASHA GIORDANO

  	
   

  
	
   

  	
  Natasha GiordanoExhibit
10.6

 

AMENDMENT

 

THIS AMENDMENT is
made as of February 13, 2006 and amends the Employment Agreement dated as
of November 11, 2000 (the “Employment Agreement”) between DENDRITE INTERNATIONAL, INC. (“Dendrite”) and GARRY JOHNSON (“Employee”). Unless defined in this
Amendment, capitalized terms used in this Amendment will have the meaning set
forth in the Employment Agreement.

 

WHEREAS, the Company and the Employee are
parties to the Employment Agreement and wish to amend the Employment Agreement;
and

 

WHEREAS, the Company considers it essential
to the best interests of its shareholders to foster the continuous employment
of key management; and

 

WHEREAS, the Compensation Committee of the
Board of Directors recognizes that, as is the case with many publicly held
corporations, the possibility of a Change of Control always exists and that
such possibility, and the uncertainty it may raise among management, may result
in the departure or distraction of key management personnel, to the detriment
of the Company and its shareholders; and

 

WHEREAS, the Compensation Committee of the
Board has determined that appropriate steps should be taken to reinforce and
encourage the continued attention and dedication of key members of the Company’s
management, including the Employee, to their assigned duties without
distraction in the face of potentially disturbing circumstances arising from
the possibility of any such Change of Control;

 

NOW, THEREFORE, in consideration of the
premises and mutual covenants contained in this Amendment, the Company and the
Employee agree as follows:

 

1.                                       The Employment
Agreement is amended by adding the following new Section 3A following the
end of Section 3:

 

“3A. CHANGE
IN CONTROL

 

(a)                                  Notwithstanding any other provision of
this Employment Agreement, the following severance payment only applies in the
event of a Change in Control. If Employee’s employment is terminated within one
(1) year following a Change in Control (i) by Dendrite for any reason
other than death, Cause, or Disability or (ii) by Employee for Good
Reason, the Employee shall be entitled to receive a lump sum severance payment
equal to the sum of twenty-four (24) months base salary (calculated at the
highest base salary rate in effect during the 12 month period preceding the termination
of employment) plus two (2) times the Employee’s target bonus. The
severance payment to be paid to Employee under this Section 3A is referred
to as the “Change in Control Severance Payment”. Employee’s Change In Control Severance Payment shall be paid by Dendrite in
cash not later than twenty (20) days after the effective date of the
termination of the Employee’s employment, subject to the receipt by Dendrite of
the separation agreement and general release as described in this Employment
Agreement and the expiration of the required

 

 

seven day waiting period. No interest shall
accrue or be payable on or with respect to any Change in Control Severance
Payment, except only as otherwise expressly set forth in this Amendment. In the
event of a termination of Employee’s employment described in this Section 3A,
Employee shall be provided continued “COBRA” coverage pursuant to Sections 601 et seq. of ERISA (or COBRA-like coverage, if COBRA does not
or would no longer apply) under Dendrite’s group medical and dental plans for
the twenty-four (24) month period commencing on the date of termination of
employment. During the period in which Employee receives such coverage,
Employee’s cost of 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, the payment of COBRA coverage by Dendrite as described
above shall cease (even if the Employee is entitled under COBRA to continue to
participate in Dendrite’s group medical and dental plans).

 

If Employee’s employment is terminated by
Dendrite as described in this Section 3A, in addition to the above Change
in Control Severance Payment, Employee will be entitled also to receive Employee’s
target bonus for the year in which employment is so terminated, assuming such
bonus has not previously been paid, which will be pro-rated to reflect the
percentage of days of the year during which Employee performed services for
Dendrite and which shall also be considered to be a Change in Control Severance
Payment.

 

In the event of a Change in Control all stock options
and restricted stock or other outstanding equity awards granted to Employee by
Dendrite will immediately vest and all contractual sale conditions will be
lifted.

 

In the event Employee is entitled to the Change in
Control Severance Payment as set forth in this Section 3A, Employee shall
not be entitled to any other severance payments from Dendrite, under this
Employment Agreement or otherwise.

 

(b)                                 The making of any Change in Control
Severance Payment under this Employment Agreement 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 Employee may have against
them. Nothing herein shall affect any of the Employee’s obligations or Dendrite’s
rights under this Employment Agreement.

 

(c)                                  Notwithstanding anything else herein to
the contrary, in the event that the Company’s certified public accountants (or
another certified public accounting firm, if the Company’s certified public
accountants may not provide such service due to independence or other
considerations) (the “Accountants”) determine that any actual or potential
payment or distribution by the Company to or for the benefit of the Employee
(whether paid, payable, distributed or distributable to the Employee, whether
under this Agreement or otherwise) (a “Payment”) would likely subject the
Employee to the imposition of an excise tax under Section 4999 of the Code
(or any similar successor provision) (“Section 4999”), then the
Compensation Committee of the Company’s Board of Directors, in its sole
discretion, may determine and agree to, but need not,

 

 

(1)                                  reduce (but not below zero) the Change in
Control Severance Payment to the Reduced Amount. For this purpose, the “Reduced
Amount” shall be an amount which is designed and calculated to maximize the
Change in Control Severance Payment without causing any Payment to be subject
to the excise tax under Section 4999; 
or

 

(2)                                  pay to the Employee an amount (the “Tax Gross-Up
Payment”), to be calculated by the Accountants, designed and calculated to
fully negate the tax impact of any excise tax imposed (or to be imposed) upon
the Employee as a result of Section 4999. Any such Tax Gross-Up Payment
will take into account the federal, state and local income, employment and
excise tax consequences of the Tax Gross-Up Payment, including the additional
impact of Section 4999 on the Tax Gross-Up Payment itself.”

 

2.                                       Notwithstanding
anything in this Amendment or in the Employment Agreement to the contrary, any
severance payment under the Employment Agreement may be delayed, for no
more than six (6) months following termination of employment, pursuant to Section 409A
of the Internal Revenue Code (the “Code”), and, to the extent any delay in
severance payment is attributable to Code Section 409A, interest on such
severance payment shall accrue from the date otherwise scheduled for such
payment under the terms of this Employment Agreement until the date of actual
payment at an annual rate of six percent (6%).

 

3.                                       For purposes of this Section 3A of
the Employment Agreement, “target bonus” means the annual target bonus
established for the Employee for the fiscal year in which the Employee’s
employment terminates, or if the annual target bonus has not been established
for the Employee for such fiscal year, then the annual target bonus for the
prior fiscal year shall be used; provided that,
in connection with a Change in Control Severance Payment, in no event shall
target bonus be less than the annual target bonus most recently established for
the Employee prior to the occurrence of the Change in Control.

 

4.                                       Certain capitalized terms used herein are
defined in Appendix A attached hereto.

 

5.                                       Except as expressly modified by this Amendment, all of the
terms and conditions of the Employment Agreement shall remain in full force and
effect.

 

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

 

	
   

  	
  DENDRITE INTERNATIONAL, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CHRISTINE PELLIZZARI

  	
   

  
	
   

  	
  Name: 

  	
  Christine Pellizzari

  
	
   

  	
  Title:

  	
  Senior Vice President, General Counsel

  and Secretary

  
	
   

  	
   

  
	
   

  	
  GARRY JOHNSON

  	
   

  
	
   

  	
  Garry Johnson

  
					

 

 

APPENDIX A

 

1.                                       “Change in
Control” 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
paragraph (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 paragraph (iii)), or (E) a transaction (other
than one described in (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 paragraph
(i);

 

(ii)                                  individuals
who, on the effective 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 the Effective 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 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 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, (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 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.

 

2.                                       “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 any of his
covenants or agreements 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.

 

3.                                       “Good Reason” as
used herein shall mean, without Employee’s express written consent,
concurrently with or within one (1) year following a “Change in Control”
(as defined above), the occurrence of any of the following events which is not
corrected within ten (10) days following 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 a material and adverse change
in Employee’s reporting responsibilities, titles or offices with Dendrite;

 

(ii)                                  any material breach by Dendrite of this Agreement with
respect to the making of any compensation payments;

 

(iii)                               any
requirement of Dendrite that Employee be based anywhere other than in a thirty-five
(35) mile radius of the Dendrite office Employee is based in on the date of
consummation of the Change in Control;

 

(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 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; 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”.

 

Employee must notify Dendrite of any event constituting Good Reason
within ninety (90) days following Employee’s knowledge of its existence, it
being understood that Employee’s failure to do so shall deem such event not to
constitute Good Reason.

 

4.                                       “Disabled” 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 “Disabled” 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 consecutive six (6) month period
(excluding permitted vacation time), the existence of which is supported by
credible medical evidence.

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