Document:

Exhibit
10.40

 

DENDRITE INTERNATIONAL, INC.

1997 STOCK INCENTIVE PLAN

 

RESTRICTED STOCK UNITS AGREEMENT

 

THIS AGREEMENT is made on
                    ,
20     by Dendrite International, Inc., a New Jersey
corporation (the “Company”), and                                       
(the “Participant”).

 

WHEREAS, on
                    
      , 20      
the Company awarded the Participant                   
units representing restricted shares of the Company’s common stock, no par
value per share (“Restricted Stock Units”), pursuant to the Dendrite
International, Inc. 1997 Stock Incentive Plan (the “Plan”) and the terms of
this Agreement;

 

NOW, THEREFORE, the parties agree as follows:

 

1.             Vesting.  Except as expressly provided elsewhere in
this Agreement, the Restricted Stock Units shall vest according to the dates
shown below:

 

	
  Percentage of

  Shares Vesting

  	
   

  	
  First Date on Which

  Such Shares Vest

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

[Insert vesting
schedule]

 

2.             Issuance of Share Certificates; Restrictive
Legends.  Subject to
satisfaction of all applicable withholding taxes and subject to all other
requirements pursuant to this Agreement or the Plan, the Company shall issue
and deliver to the Participant a certificate representing each portion of fully
vested Restricted Stock Units, pursuant to the vesting schedule set forth in
Section 1, as soon as reasonably practicable after each respective date of
vesting.

 

The common stock certificates issued pursuant to the
Participant’s grant of Restricted Stock Units shall be endorsed with such
legends as the Company deems appropriate.

 

3.             Vesting Upon Death.  Upon the Participant’s death during active
employment with the Company, all then outstanding and unvested Restricted Stock
Units granted hereunder shall become immediately vested without regard to the
vesting schedule set forth in Section 1 of this Agreement.

 

4.             Vesting Upon Termination of Employment.  Upon the termination of the Participant’s
employment with the Company for any reason other than death, the Participant
shall be entitled only to the percentage of the Restricted Stock Units which
had vested under this Agreement as of the Participant’s termination date,
except only as may otherwise be expressly provided for in any written
employment agreement executed between the Participant and the Company, if
applicable.

 

 

5.             Change in Control.  Upon the occurrence of a Change in Control
(as defined in the Plan), all Restricted Stock Units shall automatically become
vested and [all] restrictions on any Restricted Stock Units shall automatically
lapse.

 

6.             Non-Transferability.  Unless otherwise determined by the Committee
(as defined in the Plan) with respect to the transferability of certain awards
by a Participant to the Participant’s Immediate Family Members (as defined in
the Plan) or to trusts or partnerships or limited liability companies
established for such family members, no Restricted Stock Units shall be
assignable or transferable by the Participant prior to vesting of such units,
otherwise than by will or the laws of descent or distribution.

 

7.             Rights as Shareholder.  The Participant shall have no rights as a
shareholder with respect to the common stock underlying any Restricted Stock
Units unless and until a certificate representing such common stock is duly
issued and delivered to the Participant.

 

8.             Adjustments.  In the event of any change in the outstanding
shares of the Company’s common stock by reason of any stock dividend or split,
recapitalization, merger, consolidation, spin-off, combination or exchange of
shares or other corporate change, or any distribution to holders of the
Company’s common stock other than regular cash dividends prior to the vesting
of the Restricted Stock Units, the number or kind of shares represented by the
Restricted Stock Units awarded under this Agreement may be adjusted by the
Committee (as defined in the Plan) or the Board of Directors of the Company in
such manner as it may deem equitable.

 

9.             Compliance with Securities Laws.  The Participant understands and acknowledges
that the Restricted Stock Units may not be offered, sold, transferred or
otherwise disposed of except in accordance with the Securities Act of 1933, as
amended, the rules and regulations thereunder and all applicable state
securities laws.

 

10.           Withholding Taxes.  The
Company has the right to deduct from any payment to be made pursuant to the
Plan the amount of any taxes required by law to be withheld, or to require the
Participant to pay to the Company in cash the amount required to be withheld
prior to the issuance or delivery of any shares of common stock or the payment
of cash under the Plan.  Such taxes may
be paid by (a) delivering previously owned shares of common stock, or (b)
having the Company retain shares of common stock which would otherwise be
delivered upon payment of an award, or (c) any combination of a cash payment or
the methods set forth above. For purposes of (a) and (b) above, shares of
common stock shall be valued at Fair Market Value (as defined in the Plan)
determined as of the day immediately prior to vesting or payment.

 

11.           Forfeiture.  In consideration of the granting of
Restricted Stock Units pursuant to this Agreement and the Plan, the Participant
hereby agrees that notwithstanding anything in the Plan or this Agreement to
the contrary, in the event of:

 

(i) serious misconduct by the Participant (including,
without limitation, a material breach by the Participant of Company policy, or
a material breach by the Participant of the obligations set forth in the
Company’s employee handbook [or code of ethics and

 

 

standards of business
conduct]), or conduct seriously prejudicial to the business or reputation of
the Company (including illegal or fraudulent activity, criminal indictment or
acts of moral turpitude), or

 

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

 

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

 

then (a) all unvested Restricted Stock Units granted to the Participant
shall be cancelled and (b) if such conduct or activity occurs within one year
following the vesting of any Restricted Stock Units, the Participant shall be
required to repay to the Company such shares underlying vested Restricted Stock
Units.  Such cancellation or repayment
obligation shall be effective as of the date specified by the Committee.

 

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 is
hereby permitted and expressly authorized by the Participant to offset against
any future payments owed by the Company or any Subsidiary to the Participant
(including any salary, bonus, severance or other compensation) to satisfy the
repayment obligation.  The determination
of whether the Participant has engaged in any conduct or activity described in
(i), (ii) or (iii) above shall be determined by the Committee in good
faith.  This Section 11 shall have no
application following a Change in Control.

 

The Participant 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 11.

 

12.           Beneficiaries.  The Participant may designate a beneficiary
to be assigned the Restricted Stock Units outstanding at the time of the
Participant’s death.  If no beneficiary
has been named by the Participant at the time of death, any Restricted Stock
Units held by the Participant at such time shall be transferred as provided in
the Participant’s will or by the laws of descent and distribution.  Whenever the word “Participant” is used in
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 Restricted Stock Units may be transferred by will or by
the laws of descent and distribution, the word “Participant” shall be deemed to
include such person or persons.

 

13.           Notices.  Every notice or other communication relating
to this Agreement shall be in writing, and shall be mailed to or delivered to
the party for whom it is intended at such address as may from time to time be
designated by it in a notice mailed or delivered to the other party as herein
provided; provided  that, unless and until some other address be
so designated, all notices or communications by the Participant to the Company
shall be mailed or

 

 

delivered to the Company
at its principal executive office, and all notices or communications by the
Company to the Participant may be given to the Participant personally or may be
mailed to the Participant at the address in the records of the Company.

 

14.           Binding Effect.  Subject to Section 12 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 principles.

 

16.           Incorporation by Reference of the Plan.  The terms and provisions of the Plan are
incorporated herein by reference, and the Participant hereby acknowledges
receiving a copy of the Plan. 
Capitalized terms not defined in this Agreement have the meaning set
forth in the Plan.  In the event of a
conflict or inconsistency between discretionary terms and provisions of the
Plan 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 Plan
shall govern and control.  All
capitalized terms not defined herein shall have the meaning ascribed to them as
set forth in the Plan.

 

17.           Amendment.  This Agreement may be amended by written
agreement of the Participant and the Company, without the consent of any other
person.

 

 

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

 

 

	
   

  	
  DENDRITE INTERNATIONAL, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PARTICIPANT

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:Exhibit 10.1

 

K-SEA TRANSPORTATION PARTNERS L.P.
LONG-TERM INCENTIVE PLAN

 

DIRECTOR PHANTOM UNIT AWARD AGREEMENT

 

THIS AGREEMENT (“Agreement”), made as of the     
day of          ,
2004 (the “Grant Date”), evidences an award by K-Sea General Partner GP LLC, a
Delaware limited liability company (the “Company”) and general partner of the
general partner of K-Sea Transportation Partners L.P., a Delaware limited
partnership (the “Partnership”), to         
          (the
“Grantee”) pursuant to the K-Sea Transportation Partners L.P. Long-Term
Incentive Plan (the “Plan”).  Capitalized
terms used and not otherwise defined herein shall have the meaning ascribed to
them in the Plan.

 

1.             Grant of Phantom Units.  Effective as
of the Grant Date, pursuant to Section 6(b) of the Plan, the Company has
awarded to the Grantee                                   
Phantom Units, subject to the conditions and restrictions set forth below and
in the Plan (the “Phantom Units”).

 

2.             Restrictions; Vesting Schedule.  The Phantom Units granted hereunder to
the Grantee may not be sold, assigned, transferred, pledged or otherwise
encumbered and are subject to forfeiture as described in Section 3.  The Grantee shall have a vested right with
respect to one-fourth (1/4) of the Phantom Units on the first anniversary of
the Grant Date, with respect to an additional one-fourth (1/4) of the Phantom
Units on the second anniversary of the Grant Date, with respect to an
additional one-fourth (1/4) of the Phantom Units on the third anniversary of the
Grant Date and with respect to the remaining one-fourth (1/4) of the Phantom
Units on the fourth anniversary of the Grant Date, provided that as of each
such date the Grantee has been in continuous service as a Director since the
Grant Date.  The number of Phantom Units
that vest as of each date described above will be rounded down to the nearest
whole Phantom Unit, with any remaining Phantom Units to vest with the final
one-fourth (1/4) installment. 
Notwithstanding the foregoing:

 

(a)                                  Grantee shall have a vested right to all
of the Phantom Units upon a termination of Grantee’s service as a
Director due to death, Disability or Retirement; and

 

(b)                                 Grantee shall have a vested right to all
of the Phantom Units upon a Change in Control.

 

The period of time
between the Grant Date and the date that the Grantee obtains a vested right to
a Phantom Unit shall be referred to herein as the “Restricted Period” as to
that Phantom Unit.  In the event that any
day on which the Grantee would otherwise obtain a vested right to a Phantom
Unit is a Saturday, Sunday or holiday, the Grantee shall instead obtain that
vested right on the first business day immediately following such date.  As soon as reasonably practicable following
vesting with respect to a Phantom Unit, the Grantee shall be entitled to
receive a Unit, and the Company shall deliver to the Grantee a certificate
evidencing the Unit.  Upon delivery of a
Unit

 

1

 

in respect of a Phantom Unit, such Phantom Unit shall cease to be
outstanding in the Grantee’s notional account described in Section 4.  For purposes of this Agreement:

 

“Retirement” shall mean Grantee’s termination of
services as a Director on or after age 70.

 

“Disability” shall mean total and permanent disability
of the Grantee as determined by the Committee in its discretion.

 

“Change in Control” shall mean the occurrence of one
or more of the following events: (i) any sale, lease, exchange or other
transfer (in one or a series of related transactions) of all or substantially
all of the assets of the Company or the Partnership to any Person and/or its
Affiliates, other than to the Company, the Partnership or any of their
Affiliates or (ii) any merger, reorganization, consolidation or other
transaction pursuant to which more than 50% of the combined voting power of the
equity interests in the Company cease to be owned by Persons who own such
interests as of the date of the initial public offering of Units. Phantom Units
awarded hereunder shall not vest as provided in Section 6(c)(vii) of the
Plan, but only upon the occurrence of events which meet the definition of
Change in Control as provided in this Agreement.

 

3.             Forfeiture.  If Grantee’s service as a Director
terminates under circumstances other than those provided in Section 2
prior to all or a portion of the Phantom Units having become vested pursuant to
the provisions of Section 2, the Grantee shall forfeit all right to any
Phantom Units not yet vested as of the date of termination of service.  Such forfeiture shall apply to Beneficiaries
(as defined below) as well as the Grantee.

 

4.             DER.  During the Restricted Period, the Award
of Phantom Units hereunder shall be evidenced by entry in a bookkeeping account
and shall include a tandem DER.  Pursuant
to the DER, as of each date that a cash distribution is made with respect to
Units, the Grantee shall be entitled to receive a cash payment with respect to
each Phantom Unit then outstanding equal to the cash distribution made by the
Partnership with respect to each Unit.

 

5.             Beneficiary Designations.  The Grantee shall file with the Company
on such form as may be prescribed by the Company, a designation of one or more
beneficiaries and, if desired, one or more contingent beneficiaries (each
referred to herein as a “Beneficiary”) to whom Units or cash otherwise due the
Grantee under the terms of this Agreement shall be distributed in the event of
the death of the Grantee.  The Grantee
shall have the right to change the Beneficiary or Beneficiaries from time to time;
provided, however, that any change shall not become effective
until received in the Grantee’s handwriting by the Vice President of
Administration.  If any designated
Beneficiary survives the Grantee but dies after the Grantee’s death, any
remaining benefits due such deceased Beneficiary under this Agreement shall be
distributed to the personal representative or executor of the deceased
Beneficiary’s estate.  If there is no
effective Beneficiary designation on file at the time of the Grantee’s death,
or if the designated Beneficiary or Beneficiaries have all predeceased such
Grantee, the payment of any remaining benefits under this Agreement shall be
made to the personal representative or executor of the Grantee’s estate.  If one or more but not all the Beneficiaries
have predeceased such Grantee, the benefits under this Agreement shall be paid
according to the Grantee’s instructions

 

2

 

in his designation of
Beneficiaries.  If the Grantee has not
given instructions, or if the instructions are not clear, the benefits under
this Agreement which would have been paid to the deceased Beneficiary or
Beneficiaries will be paid to the personal representative or executor of
Grantee’s estate.

 

6.             Nonalienation of Benefits.  Except as
contemplated by Section 5 above, no right or benefit under this Agreement
shall be subject to transfer, anticipation, alienation, sale, assignment,
pledge, encumbrance or charge, whether voluntary, involuntary or by operation
of law, and any attempt to transfer, anticipate, alienate, sell, assign,
pledge, encumber or charge the same shall be void.  No right or benefit hereunder shall in any
manner be liable for or subject to any debts, contracts, liabilities or torts
of the person entitled to such benefits. 
If the Grantee or the Grantee’s Beneficiary hereunder shall become
bankrupt or attempt to transfer, anticipate, alienate, assign, sell, pledge,
encumber or charge any right or benefit hereunder, other than as contemplated
by Section 5 above, or if any creditor shall attempt to subject the same
to a writ of garnishment, attachment, execution, sequestration or any other
form of process or involuntary lien or seizure, then such right or benefit
shall cease and terminate.

 

7.             Prerequisites to Benefits.  Neither the Grantee, nor any person
claiming through the Grantee, shall have any right or interest in Phantom Units
or the associated rights to delivery of Units or cash awarded hereunder, unless
and until all the terms, conditions and provisions of this Agreement and the
Plan which affect the Grantee or such other person shall have been complied
with as specified herein.

 

8.             Delivery of Units.  The Company
shall not be obligated to deliver any Units if counsel to the Company
determines that such delivery would violate any applicable law or any rule or
regulation of any governmental authority or any rule or regulation of, or
agreement of the Partnership or the Company with, any securities exchange or
association upon which the Units are listed or quoted. If necessary to comply
with any such law, rule, regulation or agreement, neither the Company nor the
Partnership shall be obligated to take any affirmative action in order to cause
the delivery of Units.

 

9.             Rights as a Unitholder.  Except for the DER described in
Section 4 above, the Grantee (or Beneficiary) shall have no rights as a
unitholder with respect to the Units potentially deliverable pursuant to the
Phantom Units unless and until such Units have been issued and registered in
the Grantee’s name or issued for the benefit of the Grantee hereunder.

 

10.           Taxes.
The Company shall have the right to withhold an appropriate amount of cash or
number of Units, or combination thereof, for payment of taxes or other amounts
required by law or to take such action as may be necessary in the opinion of
the Company to satisfy all obligations for withholding of taxes.  Withholding may be satisfied by the transfer
to the Company of Units theretofore owned by the Grantee, subject to such terms
and conditions as the Committee shall prescribe.

 

11.           Adjustments.  Certain adjustments may be made to the
Phantom Units upon the occurrence of certain corporate transactions or other
events as described in Section 7 of the Plan.  In addition, Phantom Units may be settled in
cash as described in Section 4 of the Plan.

 

3

 

12.           Notice.  Unless the Company notifies the Grantee in
writing of a different procedure, any notice or other communication to the
Company with respect to this Agreement shall be in writing and shall be
delivered personally or sent by first class mail, postage prepaid to the
following address:

 

K-Sea General Partner GP LLC

c/o Vice President of Administration

3245 Richmond Terrace

Staten Island, New York 10303

 

Any notice or other communication to the Grantee with respect to this
Agreement shall be in writing and shall be delivered personally, or shall be
sent by first class mail, postage prepaid, to Grantee’s address as listed in
the records of the Partnership on the Grant Date, unless the Company has
received written notification from the Grantee of a change of address.

 

13.           Amendment.  Without the consent of the Grantee, this
Agreement may be amended or supplemented (i) to cure any ambiguity or to
correct or supplement any provision herein which may be defective or
inconsistent with any other provision herein, or (ii) to add to the covenants
and agreements of the Company or the Partnership for the benefit of Grantee or
to add to the rights of the Grantee or to surrender any right or power reserved
to or conferred upon the Company or the Partnership in this Agreement, subject,
however, to any required approval of the partners of the Partnership
and, provided, in each case, that such changes or corrections shall not
adversely affect the rights of Grantee with respect to the Award evidenced
hereby without the Grantee’s consent, or (iii) to make such other changes as
the Company, upon advice of counsel, determines are necessary or advisable
because of the adoption or promulgation of, or change in or of the
interpretation of, any law or governmental rule or regulation, including any
applicable federal or state securities laws.

 

14.           Grantee Service.  Nothing contained in this
Agreement, and no action of the Company, the Partnership or the Committee with
respect hereto, shall confer or be construed to confer on the Grantee any right
to continue as a Director.

 

15.           Governing Law.  This Agreement shall be
governed by, and construed in accordance with, the internal laws of the State
of Delaware.

 

16.           Construction.  References in this Agreement to “this
Agreement” and the words “herein,” “hereof,” “hereunder” and similar terms
include the Plan.  The headings of the
Sections of this Agreement have been included for convenience of reference
only, are not to be considered a part hereof and shall in no way modify or
restrict any of the terms or provisions hereof.

 

4

 

17.           Relationship to the Plan.  In addition
to the terms and conditions described in this Agreement, grants of Phantom
Units are subject to all other applicable provisions of the Plan.  The decisions of the Committee with respect
to questions arising as to the interpretation of the Plan, or this Agreement
and as to findings of fact, shall be final, conclusive and binding.

 

 

	
   

  	
  K-SEA GENERAL PARTNER GP LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
  [Name]

  
	
   

  	
   

  	
  [Title]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GRANTEE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  [Name]

  
	
   

  	
   

  
	
   

  	
  Date

  	
   

  	
   

  
						

 

5

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