Document:

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                              EMPLOYMENT AGREEMENT

      THIS AGREEMENT, dated September 20, 2000, between DENDRITE INTERNATIONAL,
INC., a New Jersey Corporation ("Dendrite"), having its principal place of
business at 1200 Mt. Kemble Avenue, Morristown, New Jersey 07960, and MICHAEL
ATIEH ("Employee"), having an address at 90 Vanderveer Drive, Basking Ridge, NJ
07920.

      WHEREAS, Dendrite, its affiliates, and subsidiaries develop and own what
is referred to as Territory Management Systems and related hardware and
equipment;

      WHEREAS, Employee is or desires to be employed by Dendrite and Dendrite
desires to employ Employee; and

      WHEREAS, Dendrite is willing to provide certain confidential and
proprietary information to Employee for the limited purpose of enabling Employee
to carry out duties in connection with his employment by Dendrite.

                                    RECITAL:

      NOW, THEREFORE, it is agreed as follows:

1.    EMPLOYMENT AT WILL

       Dendrite hereby employs Employee, and Employee hereby accepts such
employment, as Senior Vice President and Chief Financial Officer of Dendrite.
Dendrite hereby employs Employee as an at-will employee. This employment may be
terminated at any time for any reason with or without "Cause" (as defined below)
by Dendrite. Employee agrees to provide two (2) weeks notice to Dendrite before
terminating his employment.

2.    DUTIES

      Employee shall perform those duties as may from time to time be assigned
to him and shall carry out any assignments related to Dendrite or its affiliates
as directed. In addition, Employee shall be required to attend all meetings of
the Board of Directors of Dendrite (the "Board"). Employee shall devote his
full-time attention, energy, knowledge, skill and best efforts solely and
exclusively to the duties assigned to him which he shall faithfully and
diligently perform. Employee shall report to Dendrite as may be required and
will filly account for all records, data, materials or other property belonging
to Dendrite or its customers of which he is given custody. Dendrite may, from
time to time, establish rules and regulations and Employee shall faithfully
observe these in the performance of his duties. Employee shall further comply
with all policies and directives of Dendrite. Dendrite acknowledges that
Employee currently serves on the Board of Directors of ACE, Ltd., and he may
continue to serve on that board, provided it does not
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interfere with his duties at Dendrite or create a conflict of interest. If
Employee wishes to serve on any other boards, he must first receive the written
consent of the General Counsel of Dendrite.

3.    COMPENSATION

      (i) Base Salary. Dendrite shall pay Employee for his services a base
salary at a rate of $300,000 per annum to be paid on a semi-monthly basis in
accordance with Dendrite's regular payroll practices.

      (ii) Bonus. Commencing on the completion of the fourth fiscal quarter of
2000, Employee shall be eligible to receive a quarterly bonus (the "Bonus") of
$56,250 per quarter, payable in the next payroll period occurring at least two
weeks after Dendrite publicly discloses its financial results in such fiscal
quarter; provided, however, that the payment of the Bonus is subject to: (a)
Dendrite's achievement of quarterly financial goals as set forth in the Board
approved annual business plan, (b) such other objectives as mutually agreed
upon, and (c) Employee remaining in the employ of Dendrite as of the end of any
such quarter and (d) Dendrite's annual bonus "hold back" policy as such policy
generally applies to Dendrite senior executives. Notwithstanding the foregoing,
Employee shall receive a Bonus of $56,250 for the fourth fiscal quarter of 2000;
provided he is in the employ of the Employer as of the end of said quarter).

      (iii) Stock Options

            (a) Pursuant to Dendrite's 1997 Stock Plan, as amended (the "Stock
Plan"), upon the execution of this Agreement, Dendrite shall give Employee an
option to purchase 225,000 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 via a consent which will be effective on, or as soon
after as possible, your first day as a Dendrite employee. Employee's entitlement
to such options shall be subject to (i) a four-year vesting schedule, (ii)
approval by the Board, (iii) Employee's 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. Notwithstanding
anything to the contrary, in the event of a "Change in Control" (as defined
below), if Employee is not retained in a similar position or no similar position
is offered to Employee following a "Change in Control," all of Employee's
options previously granted to him at the time of such event shall immediately
vest.

            (b) For purposes of this Agreement, "Change in Control" means 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 Exchange Act of 1934 (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% 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 deeded to be

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      a Change in Control by virtue of any of the following acquisitions: (A) by
      Dendrite or any of its subsidiaries, (B) by any employee benefit plan
      sponsored or maintained by Dendrite or any of its subsidiaries, (C) by any
      underwriter temporarily holding securities pursuant to an offering of such
      securities, (D) pursuant to a Non-Qualifying Transaction (as defined in
      paragraph (iii)), (E) pursuant to any acquisition by Employee or any group
      of persons including Employee or any entity controlled by Employee or such
      group ("Employee Holders"), or (F) a transaction (other than one described
      in paragraph (iii) below) in which Dendrite Voting Securities are acquired
      from Dendrite, if a majority of the Board approves a resolution providing
      expressly that the acquisition pursuant to this clause (F) does not
      constitute a Change in Control under this paragraph (i). Notwithstanding
      the foregoing, a transaction that would otherwise be considered a Change
      in Control but for the operation of clauses D or F of this paragraph (i)
      will be deemed a Change in Control if John Bailye immediately after the
      consummation of such a transaction is neither Chairman, President or
      Chief Executive Officer (or holds a position comparable to the foregoing
      positions) of Dendrite or any successor corporation to Dendrite as a
      result of such Change in Control transaction;

                  (ii) individuals who, on Employee's first date of employment,
      constituted the Board (the "Incumbent Directors") 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 a majority of the Incumbent
      Directors then on the 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 an Incumbent
      Director; provided, however, that no individual elected or nominated as a
      director of Dendrite initially as a result of an actual or threatened
      election contest with respect to directors or as a result of 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 an Incumbent
      Director;

                  (iii) the consummation of a merger, consolidation, share
      exchange or similar form of corporate reorganization (other than a
      transaction with Employee, any group of persons including Employee or any
      entity controlled by Employee or such a group of persons) involving
      Dendrite or any of its subsidiaries that requires the approval of
      Dendrite's stockholders whether for such transaction or the issuance of
      securities in connection with the transaction or otherwise, (a "Business
      Combination"), unless immediately following such Business Combination: (A)
      more than 50% of the total voting power of (x) the corporation resulting
      from such Business Combination (the "Surviving Corporation"), or (y) if
      applicable, the ultimate parent corporation that directly or indirectly
      has beneficial ownership of 100% of the voting securities eligible to
      elect directors of the Surviving Corporation (the "Parent Corporation"),
      is represented by Dendrite Voting Securities that were outstanding
      immediately prior to the consummation of such Business Combination (or, if
      applicable, is represented by shares into which such Dendrite Voting
      Securities were converted pursuant to such Business Combination), and such
      voting power among the holders thereof is in substantially the same
      proportion as the voting power of such Dendrite Voting Securities among
      the holders thereof immediately

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      prior to the Business Combination, (B) no person (other than the Employee
      Holders or any employee benefit plan sponsored or maintained by the
      Surviving Corporation or the Parent Corporation), is or becomes the
      beneficial owner, directly or indirectly, of 33% or more of the total
      voting power of the outstanding voting securities eligible to elect
      directors of the Parent Corporation (or, if there is no Parent
      Corporation, the Surviving Corporation) and (C) at least a majority of the
      members of the board of directors of the Parent Corporation (or if there
      is no Parent Corporation, the Surviving Corporation) were Incumbent
      Directors at the time of the Board's approval of the execution of the
      initial agreement providing for such Business Combination (any Business
      Combination which satisfies all of the criteria specified in (A), (B) and
      (C) above shall be deemed to be a "Non-Qualifying Transaction"); or

                  (iv) the stockholders of Dendrite approve a sale of all or
      substantially all of the 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% 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 increase the
percentage of outstanding Dendrite Voting Securities beneficially owned by such
person, then a Change in Control of Dendrite shall occur.]

4.    TERMINATION; SEVERANCE

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

       (b) If Employee's employment hereunder is terminated by Dendrite prior to
the first anniversary of this Agreement for any reason other than death, Cause,
or Disability, then Employee shall be entitled to receive severance payments in
an aggregate amount equal to the annual rate of Employee's base salary in effect
as of the date of termination and each quarterly installment of the Bonus
otherwise due as set forth in Section 3 (ii) in respect of the calendar year in
which Employee's employment with Dendrite is terminated. If Employee's
employment is terminated after the first anniversary of this Agreement for any
reason other than death, cause or disability, the Employee shall be entitled to
receive severance payments in an aggregate amount equal to the annual rate of
Employee's base salary in effect as of the date of termination. The severance
payments to be paid to Employee under this Section 4(b) shall be referred to
herein as the "Severance Payment". Employee's Severance Payment shall be paid by
Dendrite in cash in twelve (12) consecutive equal monthly payments commencing
not later than thirty (30) days after

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the effective date of the termination of Employee's employment. No interest
shall accrue or be payable on or with respect to any Severance Payment. In the
event of a termination of Employee's employment described in this Section 4(b),
Employee 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 Employee receives the Severance Payment, Employee's 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 Employee becomes re-employed with another employer
and becomes eligible to receive health coverage from such employer, the payment
of COBRA coverage by Dendrite, as described herein shall cease.

      (c) If Employee's employment hereunder is terminated following a Change in
Control (i) by Dendrite for any reason other than death, Cause, or Disability or
(ii) by Employee for Good Reason (as defined below), the Employee 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 Employee as of the date of termination). The severance payments to
be paid to Employee under this Section 4(c) shall be referred to herein as the
"Change in Control Severance Payment". Employee's Change In Control 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 Employee's employment. No interest shall accrue or be
payable on or with respect to any Severance Payment. In the event of a
termination of Employee's employment described in this Section 4(c), Employee
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
Employee receives the Severance Payment, Employee's 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 Employee becomes re-employed with another employer and becomes
eligible to receive health coverage from such employer, the payment of COBRA
coverage by Dendrite as described herein shall cease.

      (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 Employee releases Dendrite and
its affi1iates together with their respective officers, directors, shareholders,
employees, agents and successors and assigns from any and all claims he may have
against them. In the event Employee breaches Sections 7, 8, 9, 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) [and 4(c)]. Nothing herein shall affect any of
Employee's obligations or Dendrite's rights under this Agreement.

      (e) For purposes of this Agreement, "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

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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, 11, 12 or 13 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.

      (f) For purposes of this Agreement, "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 period of
six (6) months (excluding permitted vacation time), which need not be
consecutive, during any single twelve (12) month period.

      (g) For purposes of this Agreement, "Good Reason" means, without
Employee's express written consent, 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 (B) a
      material and adverse change in Employee's reporting responsibilities,
      titles or offices (other than membership on the Board) with Dendrite;

            (ii) any material breach by Dendrite of Section 3 of this Agreement;

            (iii) 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;

            (iv) the failure of Dendrite to obtain the assumption agreement from
      any successor in the event of a sale of all or substantially all of the
      assets of Dendrite in one transaction or a series of related transactions;
      and

            (v) any requirement of Dendrite that Employee be based anywhere
      other than Dendrite's executive offices located in Morristown, New Jersey;
      provided such executive

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      offices are located within thirty-five (35) miles of Morristown, New
      Jersey or within the borough of Manhattan.

Employee must notify Dendrite of any event constituting Good Reason within
ninety (90) days following Employee's knowledge of its existence or such event
shall not constitute Good Reason under this Agreement.

      (h) In the event Employee terminates his employment with Dendrite or
Dendrite terminates Employee's employment with Dendrite for "Cause" or
Employee's employment ends as a result of his death or becoming "Disabled," it
is understood and agreed that Dendrite's only obligation is to pay Employee any
unused but accrued vacation days and his base salary through the date of his
termination.

5.    BENEFITS

      Dendrite shall provide Employee:

      (i) Vacation. Four weeks vacation per annum 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 Employee in connection with the performance of his duties, including
first-class airline travel. Reimbursement will be made upon the submission by
the Employee of appropriate documentation and verification of the expenses.

      (iii) Financial Planning. Financial planning reimbursement in accordance
with Dendrite's policy in effect from time to time.

      (iv) Other. Dendrite will provide Employee 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.

6.    INFORMATION AND BUSINESS OPPORTUNITY

      During Employee's employment with Dendrite, Employee 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. Employee shall
promptly disclose to Dendrite that information or business opportunity but shall
not disclose it to anyone else without Dendrite's written consent.

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7.     DENDRITE CONFIDENTIAL INFORMATION

      The Employee will, as a result of his 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 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 through 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. Employee will keep all such information confidential
and will 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.    CLIENT CONFIDENTIAL INFORMATION

      Dendrite may, from time to time, be fUrnished information and data which
is proprietary and confidential to its clients, customers or suppliers. Employee
will not, at any time for any reason, reveal any information provided by any of
Dendrite's clients, customers or suppliers to anyone, unless provided with prior
written consent by Dendrite or by the applicable client, customer or supplier.
This obligation is to continue in force after employment terminates for whatever
reason.

9.    RETURN OF PROPERTY

      Upon termination of employment for any reason or upon the request of
Dendrite, Employee shall return to Dendrite all property which Employee received
or prepared or helped prepare in connection with his employment including, but
not limited to, all copies of any confidential information or material, 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 Employee will not retain
any copies, duplicates, reproductions or excerpts thereof.

10.   INVENTIONS

       All work performed by Employee and all materials, products, deliverables,
inventions, software, ideas, disclosures and improvements, whether patented or
unpatented and copyrighted

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material made or conceived by Employee, solely or jointly, in whole or in part,
during the term of Employee's employment by Dendrite which (i) relate to
methods, apparatus, designs, products, processes or devices sold, licensed, used
or under development by Dendrite, (ii) otherwise relate to or pertain to the
present, proposed or contemplated business, fUnctions or operations of Dendrite,
(iii) relate to Dendrite actual or anticipated research or development, (iv)
involve the use of Dendrite's equipment, supplies or facilities, or (v) result
from access to any Dendrite assets, information, inventions or the like are
confidential information, are 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. Employee agrees to give
Dendrite or any person or entity designated by Dendrite reasonable assistance
required to perfect its rights therein.

      If Employee conceives any idea, makes any discovery or invention within
one (1) year after the termination of employment with Dendrite that relate to
any matters pertaining to the business of Dendrite, it shall be deemed that it
was conceived while in the employ of Dendrite.

11.   RESTRICTION ON FUTURE EMPLOYMENT

      Employee acknowledges: (i) the highly competitive nature of the business
and the industry in which Dendrite competes; (ii) as the Chief Financial
Officer, he will acquire and have access to confidential information as
described in paragraph 7, particularly highly sensitive financial information,
(iii) that, as a key employee of Dendrite, he will participate in the servicing
of current clients and/or the solicitation of prospective clients, through
which, among other things, Employee will obtain knowledge of the "know-how" and
business practices of Dendrite, in which matters Dendrite has a substantial
proprietary interest; and (iv) that his employment hereunder requires the
performance of services which are special, unique, extraordinary and
intellectual in character, and his position with Dendrite placed and places him
in a position of confidence and trust with the clients and employees of
Dendrite. In the course of the Employee's employment with Dendrite, Employee
will develop a personal relationship with the clients of Dendrite and a
knowledge of those clients' affairs and requirements, and that the relationship
of Dendrite with their established clientele will therefore be placed in
Employee's hands in confidence and trust. Employee consequently agrees that it
is reasonable and necessary for the protection of the confidential information,
goodwill and business of Dendrite that Employee makes the covenants contained
herein and that Dendrite would not have entered into this Agreement unless the
covenants set forth in this Section 11 were contained in this Agreement.
Accordingly, Employee agrees that during the period that he is employed by
Dendrite and for a period of two (2) years thereafter, he 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 him 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 Employee's termination of employment

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      establish it will likely conduct within one (1) year following the date of
      Employee's 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 Employee's 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 11, the term "client" shall mean (1) anyone who is
a client of Dendrite on the date of Employee's termination or, if Employee's
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 Employee's 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 Employee's termination, and
only if Employee 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 Employee's
employment for any reason whatsoever, Employee agrees to promptly notify
Dendrite in writing the identity of all subsequent employers. Employee agrees to
provide such information as Employer may from time to time request to determine
Employee's compliance with the terms of this Agreement.

12.      NON-DISPARAGEMENT

      Employee agrees that he 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

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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 the
Company.

13.   OUTSIDE CONTRACTING

      Employee shall not enter into any agreements to provide programming or
other services to any company, person or organization outside of his employment
by Dendrite (an "Outside Agreement") without the prior written express consent
from Dendrite. Employee must notify Dendrite of his intent to enter into an
Outside Agreement specifying therein the other party to such Outside Agreement
and the type of programming and/or services to be provided by Employee. Dendrite
shall not unreasonably withhold permission to Employee to enter into Outside
Agreements unless such Outside Agreements (i) are with competitors or potential
competitors of Dendrite, or (ii) as determined in Dendrite's sole discretion,
shall substantially hamper or prohibit Employee from satisfactorily carrying out
all duties assigned to Employee by Dendrite.

14.   AFTER-HOURS DEVELOPMENT

      In the event that Employee shall develop any software which, pursuant to
Section 10 herein, is not the property of Dendrite, Dendrite shall have a right
of first refUsal to publish and/or purchase the rights to such software.
Employee shall notify Dendrite of any such After-Hours Development as soon as
reasonably possible before or during the development process including a
description of the intended functions of the After-Hours Development and the
estimated date of completion.

15.   PRIOR EMPLOYMENT

      Employee represents and warrants that Employee has not taken or otherwise
misappropriated and does not have in Employee's possession or control any
confidential and proprietary information belonging to any of Employee's prior
employers or connected with or derived from Employee's services to prior
employers. Employee represents and warrants that Employee has returned to all
prior employers any and all such confidential and proprietary information.
Employee further acknowledges, represents and warrants that Dendrite has
informed Employee that Employee is not to use or cause the use of such
confidential or proprietary information in any manner whatsoever in connection
with Employee's employment by Dendrite. Employee agrees, represents and warrants
that Employee will not use such information. Employee shall indemnify and hold
harmless Dendrite from any and all claims arising from any breach of the
representations and warranties in this Section.

16.   REMEDIES

      The parties agree that in the event Employee breaches or threatens 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 Employee, Dendrite
shall have the right to obtain from a court of competent

                                       11
<PAGE>   12

jurisdiction restraints or injunctions prohibiting Employee 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 Employee shall be in addition
to any other remedies which Dendrite may have available to it.

17.   APPLICABLE LAW

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

18.   NOTICES

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

         If to Employee:       Michael Atieh
                               90 Vanderveer Drive
                               Basking Ridge, New Jersey 07920

         If to Dendrite:       Christine Pellizzari, Vice President
                               Dendrite International, Inc.
                               1200 Mt. Kemble Avenue
                               Morristown, New Jersey 07960

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.   NON-ASSIGNABILITY

      Employee's rights or obligations under the terms of this Agreement or of
any other agreement with Dendrite may not be assigned. Any attempted assignment
will be void as to Dendrite. Dendrite may, however, assign its rights to any
affiliated or successor entity.

20.   BINDING AGREEMENT

      This Agreement shall be binding upon and inure to the benefit of
Employee's heirs and personal representatives and to the successors and assigns
of Dendrite.

21.   INTEGRATION

      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.

                                       12
<PAGE>   13

22.   WAIVER

      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 be
considered a waiver of any subsequent breach of the Agreement.

23.   ARBITRATION

      (a) If any dispute arises between Employee 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 Employee's obligation to
provide services under this Agreement and Employee's obligations under Sections
6 through 13 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.

      (b) This Section 23 shall apply to claims arising under state and federal
statutes, local ordinances, and the common law. The arbitrator shall apply the
same substantive law that a court with jurisdiction over the parties and their
dispute would apply under the terms of this Agreement. The arbitrator's remedial
authority shall equal the remedial power that a court with jurisdiction over the
parties and their dispute would have. The arbitrator shall, upon an appropriate
motion, dismiss any claim brought in arbitration if he determines that the claim
could not properly have been pursued through court litigation. If the
then-applicable rules of the American Arbitration Association conflict with the
procedures of this Section 23, the latter shall apply.

      (c) If the parties cannot agree upon an arbitrator, the parties shall
select a single arbitrator from a list of seven arbitrators provided by the
Newark, New Jersey office of the American Arbitration Association. All seven
listed arbitrators shall be retired judges experienced in employment law and/or
persons actively involved in hearing private cases. If the parties cannot agree
on selecting an arbitrator from that list, then the parties shall alternately
strike names from the list, with the first party to strike being determined by
lot. After each party has used three strikes, the remaining name on the list
shall be the arbitrator.

      (d) Each party may be represented by counsel or by another representative
of the party's choice, and each party shall pay the costs and fees of its
counsel or other representative and its own filing or administrative fees. The
non-prevailing party (as determined by the arbitrator) shall bear the fees and
costs of the arbitrator.

      (e) The arbitrator shall render an award and opinion in the form typical
of those rendered in labor arbitrations, and that award shall be final and
binding and non-appealable. To the extent that any part of this Section 23 is
found to be legally unenforceable for any reason, that part shall be modified or
deleted in such a manner as to render this Section 23 (or the remainder of this
Section) legally enforceable and as to ensure that except as provided in clause
(b) of this

                                       13
<PAGE>   14

Section 23, all conflicts between Dendrite and Employee shall be resolved by
neutral, binding arbitration. The remainder of this Section 23 shall not be
affected by any such modification or deletion but shall be construed as
severable and independent. If a court finds that the arbitration procedures of
this Section 23 are not absolutely binding, then the parties intend any
arbitration decision to be fully admissible in evidence, given great weight by
any finder of fact, and treated as determinative to the maximum extent permitted
by law.

      (f) Unless the parties agree otherwise, any arbitration shall take place
in Newark, New Jersey in such location as agreed to by Dendrite and Employee. If
the parties cannot agree upon a location for the arbitration, the arbitrator
shall determine the location within the State of New Jersey.

      (g) Employee has read and understands this Section 23 which discusses
arbitration. Employee understands that by signing this Agreement, Employee
agrees 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 his employment or the termination thereof, to
binding arbitration, and that this arbitration provision constitutes a waiver of
Employee's right to a jury trial and relates to the resolution of all disputes
relating to all aspects of the employer/employee relationship, including but not
limited to the following:

            (i) Any and all claims for wrongful discharge of employment, breach
      of contract, both express and implied; breach of the covenant of good
      faith and fair dealing, both express and implied; negligent or intentional
      infliction of emotional distress; negligent or intentional
      misrepresentation; negligent or intentional interference with contract or
      prospective economic advantage; and defamation;

            (ii) Any and all claims for violation of any federal. state or
      municipal statute, 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; and

            (iii) Any and all claims arising out of any other federal, state or
      local laws or regulations relating to employment or employment
      discrimination.

24.   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

                                       14
<PAGE>   15

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.

25.   JURISDICTION

      The State of New Jersey shall have exclusive jurisdiction to entertain any
legal or equitable action with respect to Sections 6 through 13 of this
Agreement except that Dendrite may institute any such suit against the Employee
in any jurisdiction in which the Employee 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
address in this Agreement specified for that party in Section 18.

      IN WiTNESS WHEREOF, the parties have signed this Agreement as of the first
date written above.

                            DENDRITE INTERNATIONAL, INC.

                            By: [Illegible]
                                Name:
                                Title: Executive V.P. & Chief Financial Officer
                                       September 20, 2000

                             /s/ Michael Atieh
                             ---------------------------------------------------
                             Michael Atieh     9/25/00<PAGE>   1
                                                                   EXHIBIT 10(u)

                          MALAN REALTY INVESTORS, INC.
                         30200 TELEGRAPH ROAD, SUITE 105
                       BINGHAM FARMS, MICHIGAN 48025-4503

                              EMPLOYMENT AGREEMENT

              AGREEMENT, made August 10, 2000, by and between Malan Realty
Investors, Inc., a Michigan corporation (the "Company") and Michael Kaline
("Executive").

                                    RECITALS

              In order to induce Executive to serve as the President of the
Company, the Company desires to provide Executive with compensation and other
benefits on the terms and conditions set forth in this Agreement.

              Executive is willing to accept such employment and perform
services for the Company, on the terms and conditions hereinafter set forth.

              It is therefore hereby agreed by and between the parties as
follows:

         1.  Employment.

         1.1 Subject to the terms and conditions of this Agreement, the Company
agrees to employ Executive during the term hereof as its President. In his
capacity as President of the Company, Executive shall report to the Company's
Chief Executive Officer (the "CEO"), or if at any time the Company does not have
a CEO, the Company's Board of Directors (the "Board" and, for the CEO or Board,
as the case may be, the "CEO/Board"), and shall have the customary powers,
responsibilities and authorities of President of corporations of the size, type
and nature of the Company, as it exists from time to time, and as are assigned
by the CEO/Board.

<PAGE>   2

         1.2 Subject to the terms and conditions of this Agreement, Executive
hereby accepts employment as the President of the Company commencing on the date
hereof, and agrees to devote his full working time and efforts, to the best of
his ability, experience and talent, to the performance of services, duties and
responsibilities in connection therewith. Executive shall perform such duties
and exercise such powers, commensurate with his position as the President of the
Company, as the CEO/Board shall from time to time delegate to him on such terms
and conditions and subject to such restrictions as such CEO/Board may reasonably
from time to time impose. Executive also agrees to serve, if elected, as a
member of the Board.

         1.3 Except as provided in Section 12, nothing in this Agreement shall
preclude Executive from engaging, so long as, in the reasonable determination of
the Board, such activities do not interfere with his duties and responsibilities
hereunder, in charitable and community affairs, from managing any passive
investment made by him in publicly traded equity securities or other property
(provided that no such investment may exceed 1% of the equity of any entity,
without the prior approval of the Board) or from serving, subject to the prior
approval of the Board, as a member of boards of directors or as a trustee of any
other corporation, association or entity.

         2. Term of Employment. Executive's term of employment under this
Agreement shall commence on the date hereof and, subject to the terms hereof,
shall terminate on the earlier of (i) the second anniversary of the date hereof
(the "Termination Date") or (ii) the termination of Executive's employment
pursuant to this Agreement (the period from the Effective Date until the
termination of this Agreement shall be the "Term"). This agreement shall be
renewed automatically for succeeding terms of one (1) year following the
Termination Date (in which case both the Termination Date and the Term shall be
extended one year on each renewal),

                                       2

<PAGE>   3
unless either party gives written notice to the other at least ninety (90) days
prior to the applicable Termination Date of its intention not to renew.

         3.  Compensation.

         3.1 Salary. The Company shall pay Executive a base salary ("Base
Salary") at the rate of $180,000 per annum during the Term. Base Salary shall be
payable in accordance with the ordinary payroll practices of the Company. Any
increase in Base Salary shall be in the sole discretion of the Board and, as so
increased, shall constitute "Base Salary" hereunder.

         3.2 Annual Bonus. In addition to his Base Salary, Executive shall be
eligible to receive an annual bonus (the "Bonus") during the Term with a target
amount equal to 30% of Base Salary (the "Target Bonus") and a maximum amount
equal to 50% of Base Salary, based on performance criteria determined by the
Board in its sole discretion.

         3.3 Stock Award. As soon as practicable following the latest of (i) the
acceptance for listing on The New York Stock Exchange of such shares, (ii) the
registration of such shares on Form S-8 by the Company, or (iii) January 1,
2001, the Company shall award to Executive 6,550 unrestricted shares of Company
common stock (the "Stock Award"). As soon as practicable following the execution
of this Agreement by the Company and Executive, the Company shall take all
reasonable actions necessary to promptly file a supplemental listing application
with The New York Stock Exchange with respect to such shares and to register
such shares with the United States Securities and Exchange Commission on Form
S-8.
         3.4 Compensation Plans and Programs. Executive shall be eligible to
participate in any compensation plan or program maintained by the Company and
generally made available to other senior executives of the Company, on terms
comparable to those applicable to such other senior executives.

                                       3

<PAGE>   4

         4.  Employee Benefits.

         4.1 Employee Benefit Programs, Plans and Practices. The Company shall
provide Executive during the Term with coverage under all employee pension and
welfare benefit programs, plans and practices (commensurate with his position in
the Company and to the extent permitted under any employee benefit plan) in
accordance with the terms thereof, which the Company generally makes available
to its senior executives.

         4.2 Vacation and Fringe Benefits. Executive shall be entitled to no
less than twenty (20) business days paid vacation in each calendar year, which
shall be taken at such times as are consistent with Executive's responsibilities
hereunder. Unless otherwise approved by the Board, any vacation days not taken
in any calendar year shall be forfeited without payment therefor. In addition,
Executive shall be entitled to the perquisites and other fringe benefits
generally made available to senior executives of the Company, commensurate with
his position with the Company.

         5. Expenses. Executive is authorized to incur reasonable expenses in
carrying out his duties and responsibilities under this Agreement, including,
without limitation, expenses for travel and similar items related to such duties
and responsibilities. The Company will reimburse Executive for all such expenses
upon presentation by Executive, from time to time, of accounts of such
expenditures (appropriately itemized and approved consistent with the Company's
policy).

         6.  Termination of Employment.

         6.1 Termination Not for Cause or for Good Reason. (a) The Company may
terminate Executive's employment at any time for any reason. If Executive's
employment is terminated by the Company other than for Cause (as defined in
Section 6.4 hereof) or as a result of Executive's

                                       4

<PAGE>   5

death or Permanent Disability (as defined in Section 6.2 hereof), or if
Executive terminates his employment for Good Reason (as defined in Section 6.1
(c) hereof) prior to the Termination Date, Executive shall receive such
payments, if any, under applicable plans or programs, including but not limited
to those referred to in Section 3.4 hereof, to which he is entitled pursuant to
the terms of such plans or programs. In addition, Executive shall be entitled to
receive an amount (the "Termination Amount") in lieu of any Bonus in respect of
all or any portion of the fiscal year in which such termination occurs and any
other cash compensation (other than the Vacation Payment and the Compensation
Payment referred to below), which Termination Amount shall be payable in twelve
(12) equal monthly installments at the beginning of each month following such
termination of employment. The Termination Amount shall consist of an amount
equal to the sum of (i) the greater of (A) the Base Salary which Executive would
have received over the remaining Term, or (B) six (6) months of Base Salary,
plus (ii) an amount equal to the product of (x) the number of full months
remaining in the Term and (y) one-twelfth (1/12) of the Target Bonus. In
addition, Executive shall be entitled to receive a cash lump sum payment in
respect of accrued but unused vacation days (the "Vacation Payment") and to Base
Salary earned but not yet paid (the "Compensation Payment"), and to continued
coverage through the Termination Date under any employee medical plans in
accordance with the respective terms thereof. If such termination occurs prior
to the date the Stock Award is made to Executive pursuant to Section 3.3 hereof,
Executive shall remain entitled to such Stock Award and the Company shall make
such Stock Award to Executive at such time as required pursuant to Section 3.3.

                                       5

<PAGE>   6

              (b) The Vacation Payment and the Compensation Payment shall be
paid by the Company to Executive within 30 days after the termination of
Executive's employment by check payable to the order of Executive or by wire
transfer to an account specified by Executive.

              (c) For purposes of this Agreement, "Good Reason" shall mean any
of the following (without Executive's express prior written consent):

              (i) Any material breach by the Company of this Agreement,
         including any material reduction by the Company of Executive's duties
         or responsibilities (except in connection with the termination of
         Executive's employment for Cause, as a result of Permanent Disability,
         as a result of Executive's death or by Executive other than for Good
         Reason); or

              (ii) A reduction by the Company in Executive's Base Salary, other
         than a reduction which is part of a general salary reduction program
         affecting senior executives of the Company.

         6.2 Permanent Disability. If during the Term, the Executive becomes
totally and permanently disabled (as defined in the Company's Long-Term
Disability Benefit Plan applicable to senior executive officers as in effect on
the date hereof) ("Permanent Disability"), the Company or Executive may
terminate Executive's employment on written notice thereof, and Executive shall
receive or commence receiving, as soon as practicable:

              (i) amounts payable pursuant to the terms of a disability
         insurance policy or similar arrangement which the Company maintains
         during the term hereof;

              (ii) the Target Bonus in respect of the fiscal year in which his
         termination occurs, multiplied by a fraction, the numerator of which is
         the number of days of the fiscal year prior to termination and the
         denominator of which is 365;

              (iii) the Vacation Payment and the Compensation Payment;

              (iv) such payments under applicable plans or programs, including
         but not limited to those referred to in Section 3.4 hereof, to which he
         is entitled pursuant to the terms of such plans or programs; and

              (v) if such termination occurs prior to the date the Stock Award
         is made to Executive pursuant to Section 3.3 hereof, Executive shall
         remain entitled to

                                       6

<PAGE>   7

         such Stock Award and the Company shall make such Stock Award to
         Executive at such time as required pursuant to Section 3.3.

         6.3 Death. In the event of Executive's death during the Term,
Executive's estate or designated beneficiaries shall receive or commence
receiving, as soon as practicable:

              (i) the Target Bonus in respect of the fiscal year in which his
         death occurs, multiplied by a fraction, the numerator of which is the
         number of days of the fiscal year prior to his death and the
         denominator of which is 365;

              (ii) any death benefits provided under the employee benefit
         programs, plans and practices referred to in Section 4.1 hereof, in
         accordance with their terms;

              (iii) the Vacation Payment and the Compensation Payment;

              (iv) such payments under applicable plans or programs, including
         but not limited to those referred to in Section 3.4 hereof, to which
         Executive's estate or designated beneficiaries are entitled pursuant to
         the terms of such plans or programs; and

              (v) if such death occurs prior to the date the Stock Award is made
         to Executive pursuant to Section 3.3 hereof, Executive's estate or
         designated beneficiary(ies) shall receive such Stock Award and the
         Company shall make such Stock Award at such time as required pursuant
         to Section 3.3.

         6.4 Discharge for Cause; Voluntary Termination by Executive. (a) The
Company shall have the right to terminate the employment of Executive for Cause.
In the event that Executive's employment is terminated (i) by the Company for
Cause, as hereinafter defined, or (ii) by Executive other than (A) for Good
Reason or (B) as a result of the Executive's Permanent Disability or death,
prior to the Termination Date, Executive shall only be entitled to receive the
Compensation Payment and the Vacation Payment; provided, however, that if such
termination occurs prior to the date the Stock Award is made to Executive
pursuant to Section 3.3 hereof, Executive shall remain entitled to such Stock
Award and the Company shall make such Stock Award to Executive at such time as
required pursuant to Section 3.3. Executive shall not be entitled, among other
things, to the payment of any Bonus in respect of all or any portion of the

                                       7

<PAGE>   8

fiscal year in which such termination occurs. After the termination of
Executive's employment under this Section 6.4, the obligations of the Company
under this Agreement to make any further payments, or provide any benefits
specified herein, to Executive shall thereupon cease and terminate.

              (b) As used herein, the term "Cause" shall be limited to (i)
willful malfeasance or willful misconduct by Executive in connection with his
employment, (ii) continuing refusal by Executive to perform his duties hereunder
or any lawful direction of the CEO/Board as required under Section 1.2, after
notice of any such refusal to perform such duties or direction was given to
Executive, (iii) any breach of the provisions of Section 12 of this Agreement by
Executive or any other material breach of this Agreement by Executive or (iv)
the commission by Executive of (A) any felony or (B) a misdemeanor involving
moral turpitude. Termination of Executive pursuant to this Section 6.4 shall be
made by delivery to Executive of a copy of a resolution duly adopted by the
affirmative vote of not less than a majority of the then members of the Board at
a meeting of the Board called and held for the purpose (after 30 days prior
written notice to Executive and reasonable opportunity for Executive to be heard
before the Board prior to such vote), finding that in the reasonable judgment of
the Board, Executive was guilty of conduct set forth in any of clauses (i)
through (iv) above and specifying the particulars thereof.

         7. Mitigation of Damages. Executive shall not be required to mitigate
damages or the amount of any payment provided for under this Agreement by
seeking other employment or otherwise after the termination of his employment
hereunder, and any amounts earned by Executive, whether from self-employment, as
a common-law employee or otherwise, shall not reduce the amount of any
Termination Amount otherwise payable to him.

                                       8

<PAGE>   9

         8. Notices. All notices or communications hereunder shall be in
writing, addressed as follows:

             To the Company:        Malan Realty Investors, Inc.
                                    30200 Telegraph Road
                                    Suite 105
                                    Bingham Farm, Michigan 48025
                                    Attn: Chairman of the Board of Directors

             with a copy to:        Milbank, Tweed, Hadley & McCloy LLP
                                    One Chase Manhattan Plaza
                                    New York, New York  10005
                                    Attn:  Mr. Roland Hlawaty

             To Executive:          Michael Kaline
                                    22724 King Richard Court
                                    Beverly Hills, MI  48025

             with a copy to:

Any such notice or communication shall be delivered by hand or by courier or
sent certified or registered mail, return receipt requested, postage prepaid,
addressed as above (or to such other address as such party may designate in a
notice duly delivered as described above), and the third business day after the
actual date of mailing shall constitute the time at which notice was given.

         9. Separability; Legal Fees. If any provision of this Agreement shall
be declared to be invalid or unenforceable, in whole or in part, such invalidity
or unenforceability shall not affect the remaining provisions hereof which shall
remain in full force and effect. Each party shall bear the costs of any legal
fees and other fees and expenses which may be incurred in respect of enforcing
its respective rights under this Agreement.

         10. Assignment. This contract shall be binding upon and inure to the
benefit of the heirs and representatives of Executive and the assigns and
successors of the Company, but neither this

                                       9

<PAGE>   10

Agreement nor any rights or obligations hereunder shall be assignable or
otherwise subject to hypothecation by Executive (except by will or by operation
of the laws of intestate succession) or by the Company, except that the Company
may assign this Agreement to any successor (whether by merger, purchase or
otherwise) to all or substantially all of the stock, assets or business(es) of
the Company, if such successor expressly agrees to assume the obligations of the
Company hereunder.

         11. Amendment. This Agreement may only be amended by written agreement
of the parties hereto.

         12. Nondisclosure of Confidential Information; Non-Disparagement;
Non-Competition.

              (a) Executive shall not, without the prior written consent of the
Company, use, divulge, disclose or make accessible to any other person, firm,
partnership, corporation or other entity any Confidential Information (as
defined below) pertaining to the business of the Company or any of its
affiliates, except (i) while employed by the Company, in the business of and for
the benefit of the Company, or (ii) when required to do so by a court of
competent jurisdiction, by any governmental agency having supervisory authority
over the business of the Company, or by any administrative body or legislative
body (including a committee thereof) with jurisdiction to order Executive to
divulge, disclose or make accessible such information. For purposes of this
Section 12(a), "Confidential Information" shall mean non-public information
concerning the financial data, strategic business plans, product development (or
other proprietary product data), customer lists, marketing plans and other
non-public, proprietary and confidential information of the Company or its
affiliates (the "Restricted Group") or customers, that, in any case, is not
otherwise available to the public (other than by Executive's breach of the terms
hereof).

                                       10

<PAGE>   11

              (b) During the Term and for one (1) year thereafter, Executive
agrees that, without the prior written consent of the Company, (A) he will not,
directly or indirectly, either as principal, manager, agent, consultant,
officer, director, stockholder, partner, investor, lender or employee or in any
other capacity, carry on, be engaged in or have any financial interest in, any
business which is in competition with any business of the Restricted Group and
(B) he shall not, on his own behalf or on behalf of any person, firm or company,
directly or indirectly, solicit or offer employment to any person who has been
employed by the Restricted Group at any time during the 12 months immediately
preceding such solicitation, and (C) he shall not, on his own behalf or on
behalf of any person, firm or company, solicit, call upon, or otherwise
communicate in any way with any client, customer, prospective client or
prospective customer of the Company or of any member of the Restricted Group for
the purposes of causing or of attempting to cause any such person to purchase
products sold or services rendered by the Company or by any member of the
Restricted Group from any person other than the Company or any member of the
Restricted Group.

              (c) Executive agrees that he will not, directly or indirectly,
individually or in concert with others, engage in any conduct or make any
statement that is likely to have the effect of undermining or disparaging the
reputation of the Company or any member of the Restricted Group, or their good
will, products, or business opportunities, or that is likely to have the effect
of undermining or disparaging the reputation of any officer, director, agent,
representative or employee, past or present, of the Company or any member of the
Restricted Group.

              (d) For purposes of this Section 12, a business shall be deemed to
be in competition with the Restricted Group if it is principally involved in the
purchase, sale or other dealing in any property or the rendering of any service
purchased, sold, dealt in or rendered by

                                       11

<PAGE>   12

the Restricted Group as a material part of the business of the Restricted Group
within the same geographic area in which the Restricted Group effects such
purchases, sales or dealings or renders such services. Nothing in this Section
12 shall be construed so as to preclude Executive from investing in any publicly
or privately held company, provided Executive's beneficial ownership of any
class of such company's securities does not exceed 1% of the outstanding
securities of such class.

              (e) Executive and the Company agree that this covenant not to
compete is a reasonable covenant under the circumstances, and further agree that
if in the opinion of any court of competent jurisdiction such restraint is not
reasonable in any respect, such court shall have the right, power and authority
to excise or modify such provision or provisions of this covenant as to the
court shall appear not reasonable and to enforce the remainder of the covenant
as so amended. Executive agrees that any breach of the covenants contained in
this Section 12 would irreparably injure the Company. Accordingly, Executive
agrees that the Company may, in addition to pursuing any other remedies it may
have in law or in equity, cease making any payments otherwise required by this
Agreement and obtain an injunction against Executive from any court having
jurisdiction over the matter restraining any further violation of this Agreement
by Executive.

         13. Beneficiaries; References. Executive shall be entitled to select
(and change, to the extent permitted under any applicable law) a beneficiary or
beneficiaries to receive any compensation or benefit payable hereunder following
Executive's death, and may change such election, in either case by giving the
Company written notice thereof. In the event of Executive's death or a judicial
determination of his incompetence, reference in this Agreement to Executive
shall be deemed, where appropriate, to refer to his beneficiary, estate or other
legal

                                       12

<PAGE>   13

representative. Any reference to the masculine gender in this Agreement shall
include, where appropriate, the feminine.

         14. Survivorship. The respective rights and obligations of the parties
hereunder shall survive any termination of this Agreement to the extent
necessary to the intended preservation of such rights and obligations. In
particular, the provisions of Section 12 hereunder shall remain in effect as
long as is necessary to give effect thereto.

         15. Governing Law. This Agreement shall be construed, interpreted and
governed in accordance with the laws of the State of Michigan, without reference
to rules relating to conflicts of law.

         16. Effect on Prior Agreements. This Agreement contains the entire
understanding between the parties hereto and except as otherwise provided below,
supersedes in all respects any prior or other agreement or understanding between
the Company or any affiliate of the Company and Executive with respect to
Executive's employment, including, but not limited to, the letter agreement
between Executive and the Company dated August 15, 1997 (the "Letter
Agreement"); provided, however, that Executive shall not be required to return
any amount(s) paid to him prior to the date hereof in connection with the Letter
Agreement. The Letter Agreement shall be null and void and of no force and
effect. Under no circumstances shall Executive be entitled to any other
severance payments or benefits of any kind, except for the payments and benefits
described herein.

         17. Withholding. The Company shall be entitled to withhold from payment
any amount of withholding required by law.

                                       13

<PAGE>   14

         18. Counterparts. This Agreement may be executed in two or more
counterparts, each of which will be deemed an original.

              Malan Realty Investors, Inc.

              By                                    Date:
                  --------------------                     ---------------
              Name:    Paul Gray
              Title:   Chairman

                                                    Date:
              -----------------------                     ----------------
              Michael Kaline

                                       14

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