Document:

Exhibit 10.14

 

New Hire Authorization—Updated
Appendix

 

Stock
options covering an aggregate of 275,000 shares of common stock were granted to
Jeffrey Bairstow, Executive Vice President and Chief Financial Officer, on December 20,
2005.  Stock options covering an
aggregate of 500,000 shares of common stock and units representing an aggregate
of 250,000 restricted shares of common stock were granted to Joseph Ripp,
President and Chief Operating Officer, on November 1, 2005.  Stock options covering 140,000 shares of
common stock were granted to 16 non-executive officer employees on October 17,
2005.  Stock options covering 2,000
shares of common stock were granted to one non-executive officer employee on July 19,
2005.  Stock options covering an
aggregate of 165,000 shares of common stock were granted to thirteen
non-executive officer employees on January 27, 2005.

 

All
of the above grants were made under the Company’s New Hire Authorization as an
inducement to entering into employment with the Company.  The options include a ten-year duration and
an exercise price equal to the closing price of Dendrite’s stock on the
business day immediately preceding the date of grant.  The options granted
in January 2005 vested on June 30, 2005 and all other options vested
on December 31, 2005, but the right to sell the shares underlying all
options granted accrues in three or four equal installments on each of the
first three or four anniversaries of the date of grant.  The restricted stock units vest in three
equal installments on each of the first three anniversaries of the date of
grant.Exhibit 10.35

 

	
   

  	
  DENDRITE®

  
	
   

  	
  1200 MT. KEMBLE AVENUE MORRISTOWN, NJ
  07960-6797 USA

  

 

Mr. Mark Theilken

[          ]

[          ]

Dear Mark:

 

We would like to confirm the terms and conditions
of your employment with Dendrite International, Inc. (“Dendrite”).

 

DENDRITE
SPECIFIC TERMS & CONDITIONS

OF EMPLOYMENT

 

1.                                      TERM. You will be employed as a
Senior Vice President of Dendrite. Your employment will be at-will and may be
terminated at any time for any reason with or without Cause by Dendrite.

 

2.                                      DUTIES. You shall initially report
to the President and Chief Operating Officer or his/her designee. You shall
perform those duties as may from time to time be assigned to you and shall carry
out any assignments related to Dendrite or its affiliates as directed. You agree
to devote your full-time attention, energy, knowledge, skill and best efforts
solely and exclusively to the duties assigned to you. You agree to comply with
all policies and directives of Dendrite.

 

3.                                      COMPENSATION.

 

(i)                                     Base
Salary. Dendrite shall pay you for your services a base salary at a rate of
$275,000 per annum to be paid on a semi- monthly basis in accordance with
Dendrite’s regular payroll practices. Your base salary will be reviewed and
determined on an annual basis by the Board.

 

(ii)                                  Bonus.
You will be eligible to receive an annual discretionary bonus (the “Bonus”)
with a target of $275,000, payable in the next payroll period occurring at
least two weeks after Dendrite publicly discloses its financial results at the
end of the fiscal year; provided, however, that the payment of the Bonus is
subject to: (a) Dendrite’s achievement of financial goals as set forth in
Dendrite’s Board of Director’s (the “Board”) approved annual business plan, (b) such
other objectives as may be determined by Dendrite from time to time, (c) you
remaining in the employ of, and not giving notice of termination to, Dendrite
as of the end of any such fiscal year and (d) the terms and conditions of
Dendrite’s bonus plan program or practice in effect from time to time, as may be
amended. Your discretionary bonus will be reviewed and determined on an annual
basis by the Board. For 2004, you will be eligible for a pro-rata portion of
any such bonus.

 

	
   

  	
  DENDRITE®
  INTERNATIONAL INC.

  
	
   

  	
  TEL 973.425.1200 FAX 973.425.1919 www.dendrite.com

  

 

 

(iii)                               Stock
Options. Pursuant to the terms of Dendrite’s 1997 Stock Plan, as amended
(the “Stock Plan”), upon the execution of this Agreement, you shall be eligible
to receive non-qualified options to purchase 200,000 shares of the common stock
of Dendrite. The price for such options shall be determined by the Option
Committee and Compensation Committee of the Board. Your entitlement to such
options shall be subject to (i) a four-year sales restriction, (ii) approval
by the Board, (iii) your execution of a definitive option agreement in
form and substance satisfactory to Dendrite and (iv) in all instances
subject to the terms and conditions of the Stock Plan.

 

(iv)                              Relocation.
Dendrite will provide you with relocation benefits in accordance with
the terms and conditions of the Dendrite International Domestic Relocation
Policy “the “Relocation Policy”). You will be provided with a one-time lump sum
miscellaneous allowance of $30,000 (minus applicable taxes) to cover ancillary
expenses associated with this relocation. This lump sum is in lieu of the one-time
miscellaneous allowance equal to one month’s salary set forth in the Relocation
Policy.  In the event that prior to your
first anniversary of your employment (i) you voluntarily terminate your employment
with Dendrite for any reason whatsoever, or (ii) your employment is
terminated by Dendrite for Cause, you agree to pay to Dendrite within 90 days
of the termination of your employment all amounts paid to you or on your behalf
associated with your relocation. You authorize Dendrite to immediately offset
against and reduce an amounts otherwise due you for any amounts in respect of
your obligation to repay such amounts.

 

4.                                      TERMINATION:
SEVERANCE

 

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

 

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

 

(c)                                  The
following severance payment only applies in the event of a Change in Control.
If your employment hereunder is terminated within the (1) year following a
Change in Control by you for Good Reason, you shall be entitled to receive the severance
payments and payment of

 

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COBRA coverage on the same terms and
conditions as set forth in Section 4(b) above. For purposes of
clarification, under no circumstances are you entitled to receive payments
under both Sections 4(b) and 4(c).

 

(d)                                 The
making of any Severance Payments under Sections 4(b) or 4(c) hereunder
is conditioned upon the signing of a general release in form and substance
satisfactory to Dendrite under which 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. In the event you breach Sections 6, 7, 8, 9, 10, 11, or 12 of this
Agreement, in addition to any other remedies at law or in equity, Dendrite may
cease making any Severance Payment or any payments for COBRA coverage otherwise
due under Sections 4(b) or 4(c). Nothing herein shall affect any of
your obligations or Dendrite’s rights under this Agreement.

 

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

 

5.                                      BENEFITS.
Dendrite shall provide your:

 

(i)                                     Vacation.
Twenty (20) days vacation per annum in accordance with Dendrite policy in
effect from time to time. For calendar year 2004, you will be eligible for fifteen
(15) days in accordance with Dendrite policy in effect from time to time.

 

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

 

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

 

DENDRITE
GENERAL TERMS & CONDITIONS

OF EMPLOYMENT

 

6.                                      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.

 

7.                                      DENDRITE
AND CLIENT CONFIDENTIAL INFORMATION. You will, as a result of your
employment with Dendrite, acquire information which is proprietary and
confidential to Dendrite. This information includes, but is not limited
to, Dendrite’s proprietary software, technical and commercial information,
instruction and product information, the design, “look and feel” and

 

3

 

capabilities of Dendrite’s product, Dendrite’s proprietary training
program methodology regarding the utilization of electronic territory management
software and associated customer support services, Dendrite’s methodology for
promoting its products and services to its clients, Dendrite’s proprietary
Graphic User Interface, the navigational paths though 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, from time to time, be furnished information
and data which is proprietary and confidential to its clients, customers or
suppliers. You agree to keep all confidential information of Dendrite and it
clients confidential and agree not reveal it at any time without the express
written consent of Dendrite. This obligation is to continue in force after
employment terminates for whatever reason.

 

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

 

9.                                      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 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.

 

10.                               RESTRICTION
ON FUTURE EMPLOYMENT. You acknowledge: (i) the highly competitive
nature of the business and the industry in which Dendrite competes; (ii) as
a Senior Vice President, you will acquire and have access to confidential
information as described in Section 7, particularly highly sensitive
financial, sales, and marketing information, (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 client’s affairs and requirements, and that the relationship
of Dendrite with its established clientele will continue be placed in your hand
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

 

4

 

that Dendrite would not have entered into this Agreement unless the
covenants set forth in this Section 10 were contained in this Agreement. Accordingly,
you agree that during the period that you are employed by Dendrite and for a
period of two (2) years 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 Dendrite, directly or
indirectly, and regardless of the reason for you ceasing to be employed by
Dendrite:

 

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

 

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

 

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

 

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

 

As used in this Section 10, 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”); (2) anyone
who was a client of Dendrite at any time during the one (1) year period
immediately preceding the Determination Date; (3) any prospective client
to whom Dendrite had made a new business presentation (or similar offering of
services) at any time during the one (1) year period immediately preceding
the Determination Date; and (4) any prospective client to whom Dendrite
made a new business presentation (or similar offering of services) at any time
within six (6) months after the date of 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 of the Client Group
has the decision making authority or significant influence with respect to
contracting for services of the type rendered by Dendrite.

 

For a two (2) year period after the termination
of 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.

 

5

 

11.                               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 Dendrite.

 

12.                               OUTSIDE
CONTRACTING. You shall not enter into any agreements to provide
programming or other services to any company, person or organization outside of
your employment by Dendrite without the prior written express consent from
Dendrite.

 

13.                               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 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.

 

14.                               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 this Agreement, arbitration in accordance with the
then-applicable rules of the American Arbitration Association shall
provide the exclusive remedy for resolving any such dispute, regardless of its
nature; provided, however, that Dendrite may enforce your obligation to provide
services under this Agreement and your obligations under Sections 6 through 12
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 14 shall apply to
any and all claims arising out of your employment and its termination as well
as on class, 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 and the
New Jersey Law Against Discrimination.

 

(b)                                  You
have read and understand this Section 14 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.

 

6

 

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

 

16.                                JURISDICTION.
The State of New Jersey shall have exclusive jurisdiction to entertain any
legal or equitable action with respect to Sections 6 through 12 hereof 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
effected upon any party by delivering it to the last known address.

 

17.                               DEFINITIONS

 

(a)                                  “Cause”
as used in this Agreement shall mean (i) any gross misconduct on the part
of you with respect to your duties under this Agreement, (ii) the engaging
by you in an indictable offense 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
which injures in any material respect or could reasonably be expected to injure
in any material respect the reputation, business or business relationships of
Dendrite, including without limitation, a breach of Sections 6, 7, 8, 9, 10,
11, or 12 hereof, or (iv) the engaging by you through gross negligence in
conduct 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 concurrently with or
within one (1) year following a “Change in Control” (as defined below)
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;

 

7

 

(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 on the date of the 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 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 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

 

8

 

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 the
Dendrite’s assets.

 

Notwithstanding the foregoing, a Change in Control of Dendrite shall
not he 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.

 

9

 

18.                               NOTICES

 

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

 

	
   

  	
  If to you:

  	
  Mr. Mark
  Theilken

  
	
   

  	
   

  	
  [          ]

  
	
   

  	
   

  	
  [          ]

  
	
   

  	
   

  	
   

  
	
   

  	
  If to
  Dendrite:

  	
  Dendrite
  International, Inc.

  
	
   

  	
   

  	
  1200 Mt.
  Kemble Avenue

  
	
   

  	
   

  	
  Morristown,
  New Jersey 07960

  
	
   

  	
   

  	
  Attention:
  General Counsel

  

 

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

 

19.                               MISCELLANEOUS

 

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

 

(b)                                 Your
rights or obligations under the terms of this Agreement or of any other
agreement with Dendrite may not he 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 he considered a waiver of any
subsequent breach of the Agreement.

 

(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.

 

	
   

  	
  Sincerely,

  
	
   

  	
   

  
	
   

  	
  DENDRITE INTERNATIONAL, INC.

  
	
  Accepted and Agreed to:

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Philip Portantino

  	
   

  
	
  /s/ Mark Theilken

  	
   

  	
   

  
	
  Mark Theilken

  	
   

  
	
   

  	
   

  
	
  Date:

  	
  4/2/04

  	
   

  	
   

  
							

 

10

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