Document:

Exhibit 10.1

 

SEVERANCE
AGREEMENT AND GENERAL RELEASE

 

 

This Severance Agreement and General Release
(the “Agreement”) confirms the following understandings and agreements between DENDRITE INTERNATIONAL, INC. (“Employer”), and MARC KUSTOFF (“Employee”) concerning Employee’s employment
and termination thereof.

 

                1.             Employment
Status:

 

                                (a)           Employee’s last date of employment
with Employer pursuant to the Employment Agreement by and between Employee and
Employer dated as of September 25, 2000 (the “Employment Agreement”) or
otherwise will be February 25, 2005 (the “Termination Date”).

 

                                (b)           Employee will be paid his salary of
$325,500 per annum through the Termination Date in accordance with normal
payroll practices.  Employee will also be
paid for any accrued but unused vacation days remaining as of the Termination
Date.  Employee expressly forfeits any
rights he may have to unvested stock options under the Dendrite International,
Inc. 1997 Stock Incentive Plan, as amended (the “Stock Incentive Plan”), or otherwise.  Notwithstanding the preceding sentence,
Employee will be able to exercise any vested options under the Stock Incentive
Plan in accordance with the terms, conditions and limitations of the Stock
Incentive Plan.

 

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

 

                                (d)           Except as otherwise set forth in this
Agreement, from and after the Termination Date, 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, including
but not limited to, the Employer’s 401(k) Plan, Deferred Compensation Plan and
Stock Purchase Plan.

 

                2.             Severance
Package:  Provided
Employee (i) signs this Agreement; (ii) does not revoke it pursuant to
paragraph 9; and (iii) and complies with his obligations under this Agreement,
including but not limited to his obligations under paragraphs 2(e) and 5,
Employee shall be entitled to severance as follows:

 

                                (a)             Severance.  Employer agrees to pay Employee $615,500,
less applicable withholding taxes and deductions.  This amount shall be paid to Employee in
twelve (12) equal monthly payments of $51,291.67, less applicable withholding
taxes and deductions, commencing not later than thirty (30) after the Effective
Date of this Agreement (as defined below in paragraph 9).

 

                                (b)           COBRA Premiums.  In the event Employee timely elects to
continue the group health and dental plan coverage that Employee had in effect
on the day prior to Employee’s date of termination of employment pursuant to
COBRA, the Employer will pay for a portion of Employee’s COBRA cost so that
Employee’s cost of COBRA coverage shall be the same as the amount paid by
employees of Employer for the same coverage under Employer’s group health and
dental plans until the earlier of (i) the end of the period in which Employee
receives severance pursuant to paragraph 2(a); and (ii) the date Employee
becomes re-employed with another employer and becomes eligible to receive
health coverage from such employer. 
Thereafter, and for the balance of the applicable COBRA coverage period,
Employee may continue COBRA at Employee’s sole expense.

 

                                (c)           Outplacement.  Employee will be eligible to receive six (6)
month’s of professional outplacement assistance in a manner to be determined at
the Employer’s sole discretion.  Such
outplacement assistance shall commence on the day following the Termination
Date.  No cash payment will be made in
lieu of any such professional outplacement assistance.

 

                                (d)           Computer.  Employer will allow Employee to keep the
computer assigned to him during his employment with Employer; provided, that
Employee agrees to allow Employer a reasonable opportunity to remove its
confidential, proprietary or other business information.

 

                                (e)           Transition.  In order to be eligible to receive the
severance package set forth in this paragraph 2, Employee agrees to assist the
Employer in the orderly transition of his duties as reasonably requested by
Employer.  The transition duties shall
include, but not be limited to, transitioning the India product launch, the
product solution set definition and ownership and any event planning activities
to the Dendrite employee(s) identified by Employer.  Employee’s transition obligations shall
continue from the Termination Date through February 28, 2005.

 

                                (f)            Offset.  Any payments under this paragraph 2 shall be
offset by monies owed by Employee to Employer.

 

                3.             Full
Release:  In consideration
of the compensation and other 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.

 

2

                                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 paragraphs 2(a), 2(b), and 2(c), recover payments made under
paragraphs 2(a), 2(b), and 2(c) of this Agreement, and Employee shall be
required to return the Company’s computer provided to him in paragraph 2(d) of
this Agreement, in addition to its other remedies in law, equity and under this
Agreement.

 

                5.             Return of Property:  Except as provided above in paragraph 2(d),
upon the Termination Date, or at any other time requested by Employer, Employee
agrees that he will 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, 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 that 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 severance or any other benefits pursuant to paragraph 2.

 

                6.             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, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24 and
25 of the Employment Agreement.  Such
Sections are hereby incorporated by reference and Employee agrees to abide by
such provisions.

 

                7.             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.

 

                8.             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

 

3

and Hour Act; the
New Jersey Whistleblower Protection Act; and/or the New Jersey Conscientious
Employee Protection Act; and any and all amendments to any of same.

 

                9.             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.

 

                10.           Voluntary Waiver:
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.  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.

 

                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 (including any arbitrations), 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
or arbitration 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 person’s 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 paragraphs 2(a), 2(b), and
2(c) of this Agreement, recover any payments made under paragraphs 2(a), 2(b),
and 2(c) (except for two weeks severance pay), require Employee to return the
computer provided to Employee pursuant to paragraph 2(d), and recover the
reasonable costs and attorneys’ fees incurred in seeking relief for any such
alleged breach. 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, 8 and 9.  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 

 

4

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, 8 and
9.  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.           Entire Agreement:  Except as otherwise set forth herein, this
Agreement sets forth the entire agreement between the parties relating to the
subject matter hereof.  This Agreement
may not be changed orally but changed only in a writing signed by both parties.

 

                14.           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.

 

                IN WITNESS THEREOF, Employer and Employee have executed this
Severance Agreement and General Release on this 16th day of February, 2005.

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  DENDRITE INTERNATIONAL, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  PAUL
  L. ZAFFARONI

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  MARC KUSTOFF

  
	
   

  	
   

  	
  MARC KUSTOFF

  
	
   

  	
   

  	
   

  
	
   

  	
  Date:

  	
  2/16/05

  

 

5EXHIBIT 4.1

 

BALLISTIC RECOVERY SYSTEMS, INC.

DIRECTOR STOCK OPTION AGREEMENT

 

This
Director Stock Option Agreement (the “Agreement”)
is made and entered into effective as of the [    ] day of
[          ], 2004, between
[  NAME  ](“Option
Holder”) and Ballistic Recovery Systems, Inc., a Minnesota
corporation (the “Company”).

 

BACKGROUND

 

A.                                   Option
Holder has been appointed to serve as a director of the Company and the Company
desires to induce Option Holder to continue to serve as a director of the
Company.

 

NOW,
THEREFORE, the parties hereto agree as follows:

 

1.                                       Grant
of Option; Purchase Price.  Subject
to the terms and conditions herein set forth, the Company hereby grants to
Option Holder the right and option, hereinafter called the “Option,” to purchase all or any part of an
aggregate of Fifteen Thousand (15,000) shares of Common Stock, $.01 par value,
of the Company (the “Shares”) at
the price per Share set forth at the end of this Agreement after “Purchase Price.”  This Option is for non-statutory stock
options.

 

2.                                       Exercise
and Vesting of Option.  The Option
shall be exercisable only to the extent that all, or any portion thereof, has
vested in the Option Holder.  The right
to purchase the Shares subject to the Option shall vest immediately.

 

3.                                       Term
of Option.  The Option shall be
exercisable for five (5) years from the effective date of this Agreement.  Upon the expiration date of the Option as set
forth above, the Option shall terminate and become null and void.

 

4.                                       Rights
of Option Holder.  Option Holder, as
holder of the Option, shall not have any of the rights of a shareholder with
respect to the Shares covered by the Option except to the extent that one or
more certificates for such Shares shall be delivered to him or her upon the due
exercise of all or any part of the Option.

 

5.                                       Transferability.  The
Option shall not be transferable except in the event of the Option Holder’s
death, by will or the laws of descent.

 

6.                                       Securities
Law Matters.  Option Holder
acknowledges that the Shares to be received by him upon exercise of the Option
may have not been registered under the Securities Act of 1933 or the Blue Sky
laws of any state (collectively, the “Securities
Acts”).  If Option Holder
acknowledges and understands that the Company is under no obligation to
register, under the Securities Acts, the Shares received by him or to assist
him in complying with any exemption from such registration if he should at a
later date wish to dispose of the Shares. Option Holder acknowledges the Shares
shall bear a legend restricting the transferability thereof, such legend to be
substantially in the following form:

 

“The
shares represented by this certificate have not been registered or qualified
under federal or state securities laws. 
The shares may not be offered for sale, sold, pledged or otherwise
disposed of unless so registered or qualified, unless an exemption exists or
unless such disposition is not subject to the federal or state securities laws,
and the Company may require that the availability or any exemption or the
inapplicability of such securities laws be established by an 

 

 

opinion
of counsel, which opinion of counsel shall be reasonably satisfactory to the
Company.”

 

7.                                       Option
Holder Representations.  Option
Holder understands that he or she will be solely responsible for any tax
liability that may result to him or her as a result of the transactions
contemplated by this Agreement.  The
Option, if exercised, will be exercised for investment and not with a view to
the sale or distribution of the Shares to be received upon exercise thereof.

 

8.                                       Adjustment.  In the event of any merger, consolidation or
reorganization of the Company with any other corporation or corporations, there
shall be substituted for each of the number and kind of Shares of stock or
other securities to which the holders of the shares of Common Stock will be
entitled pursuant to the transaction.  In
the event of any recapitalization, reclassification, stock dividend, stock
split, combination of shares or other similar change in the corporate structure
of the Company or shares of the Company, the Purchase Price and the number of
Shares shall be adjusted in proportion to the change in outstanding shares of
Common Stock in order to prevent dilution or enlargement of the rights of the participants.  In the event of any such adjustments, the
purchase price of any option, the performance objectives of any Incentive, and
the Shares shall be adjusted as and to the extent appropriate, in the
discretion of the Committee, to provide participants with the same relative
rights before and after such adjustment.

 

9.                                       General.

 

(a)                                  The
Company shall at all times during the term of the Option reserve and keep
available such number of Shares as will be sufficient to satisfy the
requirements of this Agreement.

 

(b)                                 Nothing
herein expressed or implied is intended or shall be construed as conferring
upon or giving to any person, firm, or corporation other than the parties
hereto, any rights or benefits under or by reason of this Agreement.

 

(c)                                  Each
party hereto agrees to execute such further documents as may be necessary or
desirable to effect the purposes of this Agreement.

 

(d)                                 This
Agreement may be executed in any number of counterparts, each of which shall be
deemed an original, but all of which shall constitute one and the same
agreement.

 

(e)                                  This
Agreement, in its interpretation and effect, shall be governed by the laws of
the State of Minnesota applicable to contracts executed and to be performed
therein.

 

IN
WITNESS WHEREOF, the undersigned have executed this Agreement as of the date
first written above.

 

	
  Number
  of Shares:

  	
  15,000

  	
   

  	
   

  	
  OPTION
  HOLDER:

  
	
   

  	
   

  	
   

  
	
  Exercise
  Price:

  	
  $[      ]/share

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  BALLISTIC
  RECOVERY SYSTEMS, INC.  

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
   

  	
   

  
	
   

  	
   

  	
  Robert Nelson, Chairman of the Board

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}]]