Document:

Exhibit
10.3

 

AMENDMENT

 

THIS AMENDMENT is
made as of February 13, 2006 and amends the Employment Agreement dated as
of September 8, 1998 and as amended as of August 1, 2000 (the “Employment
Agreement”) between DENDRITE INTERNATIONAL, INC.
(“Dendrite”) and CHRISTINE PELLIZZARI (“Employee”).
Unless defined in this Amendment, capitalized terms used in this Amendment will
have the meaning set forth in the Employment Agreement.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

 

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

 

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

 

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

 

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

 

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

 

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

 

	
   

  	
  DENDRITE INTERNATIONAL, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  JOSEPH A. RIPP

  	
   

  
	
   

  	
  Name:

  	
  Joseph A. Ripp

  
	
   

  	
  Title:

  	
  Chief Operating Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CHRISTINE PELLIZZARI

  	
   

  
	
   

  	
  Christine PellizzariExhibit
10.4

 

AMENDMENT

 

THIS AMENDMENT is
made as of February 13, 2006 and amends the Employment Agreement dated as
of June 9, 1997 and as amended as of May 26, 1999 (the “Employment
Agreement”) between DENDRITE INTERNATIONAL, INC.
(“Dendrite”) and MARK CIEPLIK (“Employee”). Unless
defined in this Amendment, capitalized terms used in this Amendment will have
the meaning set forth in the Employment Agreement.

 

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

 

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

 

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

 

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

 

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

 

1.                                       Section 24(a) of
the Employment Agreement is restated in its entirety to provide as follows:

 

“(a)                            Notwithstanding Section 4 above, the
following severance payment only applies in the event of a Change in Control. If
Employee’s employment is terminated within one (1) year following a Change
in Control (i) by Dendrite for any reason other than death, Cause, or
Disability or (ii) by Employee for Good Reason, the Employee shall be
entitled to receive a lump sum severance payment equal to the sum of
twenty-four (24) months base salary (calculated at the highest base salary rate
in effect during the 12 month period preceding the termination of employment)
plus two (2) times the Employee’s target bonus. The severance payment to
be paid to Employee under this Section 24(a) is referred to as the “Change
in Control Severance Payment”. Employee’s Change In Control Severance Payment
shall be paid by Dendrite in cash not later than twenty (20) days after the
effective date of the termination of the Employee’s employment, subject to the
receipt by Dendrite of the separation agreement and general release as
described in this Employment Agreement and the expiration of the required seven
day waiting period. No interest shall accrue or be payable on or with respect
to any Change in Control Severance Payment, except only as otherwise expressly
set forth in this Amendment. In the

 

 

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

 

If Employee’s employment is terminated by
Dendrite as described in this Section 24(a), in addition to the above
Change in Control Severance Payment, Employee will be entitled also to receive Employee’s
target bonus for the year in which employment is so terminated, assuming such
bonus has not previously been paid, which will be pro-rated to reflect the
percentage of days of the year during which Employee performed services for
Dendrite and which shall also be considered to be a Change in Control Severance
Payment.

 

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

 

In the event Employee is entitled to the Change in
Control Severance Payment as set forth in this Section 24(a), Employee
shall not be entitled to any other severance payments from Dendrite, under this
Employment Agreement or otherwise (including under Section 4).”

 

In addition, due to the lump sum severance
payment to be made hereunder, Section 24(b) of the Employment
Agreement is amended by deleting the second sentence of such section in
its entirety.

 

In addition, Section 24 of the
Employment Agreement is amended by adding the following after Section 24(e):

 

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

 

(1)                                  reduce (but not below zero) the Change in
Control Severance Payment to the Reduced Amount. For this purpose, the “Reduced
Amount” shall be an amount which

 

 

is designed and calculated to
maximize the Change in Control Severance Payment without causing any Payment to
be subject to the excise tax under Section 4999;  or

 

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

 

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

 

3.                                       For purposes of Section 24(a) of
this Employment Agreement, “target bonus” means the annual target bonus
established for the Employee for the fiscal year in which the Employee’s
employment terminates, or if the annual target bonus has not been established
for the Employee for such fiscal year, then the annual target bonus for the
prior fiscal year shall be used; provided that,
in connection with a Change in Control Severance Payment, in no event shall
target bonus be less than the annual target bonus most recently established for
the Employee prior to the occurrence of the Change in Control.

 

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

 

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

 

	
   

  	
  DENDRITE INTERNATIONAL, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CHRISTINE PELLIZZARI

  	
   

  
	
   

  	
  Name:

  	
  Christine Pellizzari

  
	
   

  	
  Title:

  	
  Senior Vice President, General Counsel

  and Secretary

  
	
   

  	
   

  
	
   

  	
  MARK CIEPLIK

  	
   

  
	
   

  	
  Mark Cieplik

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