Document:

Exhibit
10.1

 

AMENDMENT

 

THIS AMENDMENT is
made as of February 13, 2006 and amends the Employment Agreement dated as
of October 3, 2005 (the “Employment Agreement”) between DENDRITE INTERNATIONAL, INC. (“Dendrite”) and JOSEPH RIPP (“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 4(c) of
the Employment Agreement is restated in its entirety to provide as follows:

 

“(c)         Notwithstanding Sections 4(a) and 4(b) 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 4(c) 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 4(c),
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 4(c), 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 4(c), Employee
shall not be entitled to any other severance payments from Dendrite, under this
Employment Agreement or otherwise (including under Section 4(b)).”

 

In addition, due to the lump sum severance
payment to be made hereunder, Section 4(d) of the Employment
Agreement is amended by deleting the reference to Section 4(c) from the
third sentence of such section.

 

In addition, Section 4 of the Employment
Agreement is amended by inserting the following after Section 4(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 4(c) 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 A. PELLIZZARI

  	
   

  
	
   

  	
  Name:

  	
  Christine A. Pellizzari

  
	
   

  	
  Title:

  	
   Senior
  Vice President, General Counsel

  and Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  JOSEPH A. RIPP

  	
   

  
	
   

  	
  Joseph RippExhibit
10.2

 

AMENDMENT

 

THIS AMENDMENT is
made as of February 13, 2006 and amends the Employment Agreement effective
November 28, 2005 (the “Employment Agreement”) between DENDRITE INTERNATIONAL, INC. (“Dendrite”) and JEFF BAIRSTOW (“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 4(c) of
the Employment Agreement is restated in its entirety to provide as follows:

 

“(c)         Notwithstanding Sections 4(a) and (b) 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 4(c) 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 4(c),
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 4(c), 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 4(c), Employee
shall not be entitled to any other severance payments from Dendrite, under this
Employment Agreement or otherwise (including under Section 4(b)).”

 

In addition, due to the lump sum payment to
be made hereunder, Section 4(d) of the Employment Agreement is
amended by deleting the reference to Section 4(c) from the third
sentence of such section.

 

In addition, Section 4 of the Employment
Agreement is amended by inserting the following after Section 4(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 4(c) 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

  
	
   

  	
   

  
	
   

  	
  JEFF BAIRSTOW

  	
   

  
	
   

  	
  Jeff Bairstow

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