AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON APRIL 21, 1998
REGISTRATION NO. 333-35701
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
------------------
POST-EFFECTIVE
AMENDMENT NO. 2
TO
FORM S-8
REGISTRATION STATEMENT
UNDER THE
SECURITIES ACT OF 1933
DENDRITE INTERNATIONAL, INC.
(Exact Name of Registrant as Specified in Its Charter)
NEW JERSEY
(State or Other Jurisdiction of Incorporation or Organization)
22-2786386
(I.R.S. Employer Identification Number)
1200 MOUNT KEMBLE AVENUE, MORRISTOWN, NEW JERSEY 07960-6797
(Address of Principal Executive Offices)
DENDRITE INTERNATIONAL, INC.
1997 STOCK INCENTIVE PLAN
(Full Title of the Plan)
CHRISTOPHER J. FRENCH
VICE PRESIDENT, GENERAL COUNSEL AND SECRETARY
DENDRITE INTERNATIONAL, INC.
1200 MOUNT KEMBLE AVENUE
MORRISTOWN, NEW JERSEY 07960-6797
(Name and Address of Agent for Service)
(973) 425-1200
(Telephone Number, Including Area Code, of Agent for Service)
<TABLE>
<CAPTION>
CALCULATION OF REGISTRATION FEE
===================================================================================================================
PROPOSED PROPOSED
MAXIMUM MAXIMUM AMOUNT OF
TITLE OF EACH CLASS OF OFFERING PRICE AGGREGATE REGISTRATION
SECURITIES TO BE REGISTERED AMOUNT TO BE REGISTERED PER SHARE(1) OFFERING PRICE FEE
- - -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
COMMON STOCK, NO PAR VALUE 1,250,000 $29.00 $28,562,500 $4,278(2)
===================================================================================================================
<FN>
(1) CALCULATED SOLELY FOR THE PURPOSE OF DETERMINING THE REGISTRATION FEE
PURSUANT TO RULE 457(C) BASED UPON THE AVERAGE OF THE HIGH AND LOW SALES
PRICES OF THE COMPANY'S COMMON STOCK, AS QUOTED THROUGH THE NASDAQ
NATIONAL MARKET, ON APRIL 14, 1998.
(2) REPRESENTS THE INCREMENTAL REGISTRATION FEE FOR 500,000 ADDITIONAL SHARES
OF COMMON STOCK AT $29.00 PER SHARE. THE COMPANY PAID THE REGISTRATION FEE
FOR 500,000 SHARES AT $18.75 WITH ITS FILING ON SEPTEMBER 16, 1997 AND FOR
THE REMAINING 250,000 SHARES AT $18.75 WITH ITS FILING ON NOVEMBER 10,
1997.
</FN>
</TABLE>
<PAGE>
PART I
- - --------------------------------------------------------------------------------
INFORMATION REQUIRED IN THE SECTION 10(A) PROSPECTUS
EXPLANATORY NOTE
As permitted by Rule 428 under the Securities Act of 1933, as amended
(the "Securities Act"), this registration statement omits the information
specified in Part I of Form S-8. The documents containing the information
specified in Part I will be delivered to the participants in the plan covered by
this registration statement as required by Rule 428(b). Such documents are not
being filed with the Securities and Exchange Commission (the "Commission") as
part of this registration statement or as prospectuses or prospectus supplements
pursuant to Rule 424 of such Act.
I-2
<PAGE>
PART II
INFORMATION REQUIRED IN THE REGISTRATION STATEMENT
ITEM 3. INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE
The following documents filed with the Commission by the registrant,
Dendrite International, Inc., a New Jersey corporation (the "Company"), pursuant
to the Securities Exchange Act of 1934, as amended (the "Exchange Act"), are
incorporated by reference in this registration statement.
1. The Company's Annual Report on Form 10-K for the year ended December
31, 1997 filed with the Commission on March 31, 1998.
2. The description of the Company's Common Stock, no par value ("Common
Stock") contained in the Company's Registration Statement on Form 8-A filed with
the Commission on May 24, 1995.
3. The description of the Common Stock contained in the Company's
Amendment No. 1 to the Registration Statement on Form 8-A filed with the
Commission on June 9, 1995.
4. The description of the Common Stock contained in the Company's
Amendment No. 2 to the Registration Statement on Form 8-A filed with the
Commission on June 21, 1995.
All documents subsequently filed by the Company pursuant to Sections
13(a), 13(c), 14 and 15(d) of the Exchange Act, prior to the filing of a
post-effective amendment which indicates that all shares of Common Stock offered
hereby have been sold or which deregisters all such shares then remaining
unsold, shall be deemed to be incorporated by reference in this registration
statement and to be a part hereof from the date of filing of such documents. Any
statement contained in a document incorporated or deemed to be incorporated by
reference herein shall be deemed to be modified or superseded for purposes of
this registration statement to the extent that a statement contained herein or
in any other subsequently filed document which also is incorporated or deemed to
be incorporated by reference herein modifies or supersedes such statement. Any
such statement so modified or superseded shall not be deemed, except as so
modified or superseded, to constitute a part of this registration statement.
ITEM 4. DESCRIPTION OF SECURITIES
Not applicable.
ITEM 5. INTERESTS OF NAMED EXPERTS AND COUNSEL
Not applicable.
ITEM 6. INDEMNIFICATION OF DIRECTORS AND OFFICERS
Section 14A:3-5 of the New Jersey Business Corporation Act ("NJBCA")
gives the Company power to indemnify each of its directors and officers against
expenses and liabilities in connection with any proceeding involving him by
reason of his being or having been a director or officer if (a) he acted in good
faith and in a manner he reasonably believed to be in, or not opposed
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to, the best interests of the Company and (b) with respect to any criminal
proceeding, he had no reasonable cause to believe his conduct was unlawful.
However, in a proceeding by or in the right of the Company, there shall be no
indemnification in respect of any liabilities or expenses if the officer or
director shall have been adjudged liable to the Company unless the court in such
proceeding determines he is entitled to indemnification for such liabilities
and/or expenses. Furthermore, no indemnification shall be made to or on behalf
of a director or officer if a judgment or other final adjudication adverse to
such director or officer establishes that his acts or omissions (a) were in
breach of his duty of loyalty to the Company and its stockholders, (b) were not
in good faith or involved a knowing violation of law or (c) resulted in receipt
by the director or officer of an improper personal benefit. The NJBCA defines an
act or omission in breach of a person's duty of loyalty as an act or omission
which that person knows or believes to be contrary to the best interests of the
Company or its stockholders in connection with a matter in which he has a
material conflict of interest. If a director or officer is successful in a
proceeding, the statute mandates that the Company indemnify him against
expenses.
The Company's Restated Certificate of Incorporation, as permitted by
New Jersey law, eliminates the personal liability of the directors and officers
to the Company or its shareholders for monetary damages for breaches of such
director's or officer's duty of care or other duties as a director or officer;
except liabilities for any breach of duty based upon an act or omission (a) in
breach of such person's duty of loyalty to the corporation or its shareholders,
(b) not in good faith or involving a knowing violation of law or (c) resulting
in receipt by such person of an improper personal benefit. In addition, the
Company's Restated By-laws provide broad indemnification rights to directors and
officers so long as the director or officer acted in a manner believed in good
faith to be in or not opposed to the best interest of the Company and with
respect to criminal proceedings if the director had no reasonable cause to
believe his or her conduct was unlawful. The Company believes that the
protection provided by these provisions will help the Company attract and retain
qualified individuals to serve as officers and directors. These provisions also
will limit the remedies available to a stockholder who is dissatisfied with a
Board decision protected by these provisions, and such stockholder's only remedy
may be to bring a suit to prevent the Board's action.
The Company maintains a directors' and officers' liability insurance
policy.
ITEM 7. EXEMPTION FROM REGISTRATION CLAIMED
Not Applicable
ITEM 8. EXHIBITS
Exhibit
No. Description
- - ------- -----------
3.1 Restated Certificate of Incorporation of the Company dated
November 30, 1995 (incorporated by reference to Exhibit 3.1 to the
Company's July 30, 1996 Quarterly Report on Form 10-Q, filed with
the Commission on August 15, 1996).
3.2 By-laws of the Company, as amended (incorporated herein by
reference to Exhibit 3.1 to the Company's Quarterly Report on Form
10-Q for the quarter ended September 30, 1995, filed with the
Commission on November 13, 1995).
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<PAGE>
4.1 Specimen of Stock Certificate (incorporated by reference to
Exhibit 4.1 to the Company's Registration Statement on Form S-1
filed with the Commission on May 17, 1995).
4.2 The Dendrite International, Inc. Amended and Restated 1997 Stock
Incentive Plan (the "Stock Plan") dated February 27, 1998.
5.1 Opinion of Sullivan & Cromwell as to the validity of Common Stock,
no par value, issued under the Stock Plan.
23.1 Consent of Sullivan & Cromwell (contained in Exhibit 5.1 attached
hereto).
23.2 Consent of Arthur Andersen LLP, independent public accountants.
*24.1 Power of Attorney.
- - --------------------
* Previously filed.
ITEM 9. REQUIRED UNDERTAKINGS
(a) The undersigned registrant hereby undertakes:
(1) To file, during any period in which offers or sales are being
made, a post-effective amendment to this registration statement to include
any material information with respect to the plan of distribution not
previously disclosed in the registration statement or any material change
to such information in the Registration Statement;
(2) That, for the purpose of determining any liability under the
Securities Act of 1933, each such post-effective amendment shall be deemed
to be a new registration statement relating to the securities offered
therein, and the offering of such securities at that time shall be deemed
to be the initial bona fide offering thereof; and
(3) To remove from registration by means of a post-effective
amendment any of the securities being registered which remain unsold at the
termination of the offering.
(b) The undersigned registrant hereby undertakes that, for purposes of
determining any liability under the Securities Act of 1933, each filing of the
registrant's annual report pursuant to Section 13(a) or Section 15(d) of the
Securities Exchange Act of 1934 that is incorporated by reference in the
registration statement shall be deemed to be a new registration statement
relating to the securities offered therein, and the offering of such securities
at that time shall be deemed to be the initial bona fide offering thereof.
(c) Insofar as indemnification for liabilities arising under the
Securities Act of 1933 may be permitted to directors, officers and controlling
persons of the registrant pursuant to the foregoing provisions, or otherwise,
the registrant has been advised that in the opinion of the Securities and
Exchange Commission such indemnification is against public policy as expressed
in the Securities Act and is, therefore, unenforceable. In the event that a
claim for indemnification against such liabilities (other than the payment by
the registrant of expenses incurred or paid by a director, officer or
controlling person of the registrant in the successful defense of any action,
suit or proceeding) is
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asserted by such director, officer or controlling person in connection with the
securities being registered, the registrant will, unless in the opinion of its
counsel the matter has been settled by controlling precedent, submit to a court
of appropriate jurisdiction the question whether such indemnification by it is
against public policy as expressed in the Act and will be governed by the final
adjudication of such issue.
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<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the
registrant certifies that it has reasonable grounds to believe that it meets all
of the requirements for filing on Form S-8 and has duly caused this Amendment
No. 2 to the Registration Statement to be signed on its behalf by the
undersigned, hereunto duly authorized, in the Township of Harding, State of New
Jersey, on the 20th day of April, 1998.
DENDRITE INTERNATIONAL, INC.
By: /s/John E. Bailye
---------------------------
John E. Bailye
Chief Executive Officer,
President and Director
Pursuant to the requirements of the Securities Act of 1933, this
Amendment No. 2 to the Registration Statement has been signed by the following
persons in the capacities and on the dates indicated:
NAME TITLE DATE
- - ---- ----- ----
* Chief Executive Officer,
- - ------------------------- President and Director
John E. Bailye
* Senior Vice President and
- - ------------------------- Chief Financial Officer
George T. Robson
*
- - -------------------------
Bernard M. Goldsmith Director
*
- - -------------------------
John H. Martinson Director
*
- - -------------------------
Paul A. Margolis Director
/s/Edward J. Kfoury
- - ---------------------------
Edward J. Kfoury Director April 20, 1998
*By: /s/John E. Bailye Attorney in Fact April 20, 1998
-----------------------,
John E. Bailye
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EXHIBIT INDEX
Exhibits
No. Description
- - --------- -----------
3.1 Restated Certificate of Incorporation of the Company dated
November 30, 1995 (incorporated by reference to Exhibit 3.1 to the
Company's June 30, 1996 Quarterly Report on Form 10-Q, filed with
the Commission on August 15, 1996).
3.2 By-laws of the Company, as amended (incorporated herein by
reference to Exhibit 3.1 to the Company's Quarterly Report on Form
10-Q for the quarter ended September 30, 1995, filed with the
Commission on November 13, 1995).
4.1 Specimen of Stock Certificate (incorporated by reference to
Exhibit 4.1 to the Company's Registration Statement on Form S-1
filed with the Commission on May 17, 1995).
4.2 The Dendrite International, Inc. Amended and Restated 1997 Stock
Incentive Plan dated February 27, 1998.
5.1 Opinion of Sullivan & Cromwell as to the validity of the Common
Stock issued under the Stock Plan.
23.1 Consent of Sullivan & Cromwell (contained in Exhibit 5.1 attached
hereto).
23.2 Consent of Arthur Andersen LLP, independent public accountants.
*24.1 Power of Attorney.
- - --------------------
* Previously filed.
EXHIBIT 4.2
DENDRITE INTERNATIONAL, INC.
1997 STOCK INCENTIVE PLAN
(As amended through February 27, 1998)
1. Purpose. The purpose of the Dendrite International, Inc. 1997 Stock
Incentive Plan (the "Plan") is to enhance the ability of Dendrite International,
Inc. (the "Company") and its subsidiaries to attract and retain employees,
directors and consultants of outstanding ability and to provide employees,
directors and consultants with an interest in the Company parallel to that of
the Company's shareholders.
2. Definitions.
(a) "Award" shall mean an award determined in accordance with the
terms of the Plan.
(b) "Board" shall mean the Board of Directors of the Company.
(c) "Change in Control" shall mean the occurrence of any one of the
following events:
(i) any "person" (as such term is defined in Section 3(a)(9) of
the 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
the Company representing 33-1/3% or more of the combined voting power
of the Company's then outstanding securities eligible to vote for the
election of the Board (the "Company Voting Securities"); provided,
however, that the event described in this paragraph (i) shall not be
deemed to be a Change in Control by virtue of any of the following
acquisitions: (A) by the Company or any subsidiary, (B) by any employee
benefit plan sponsored or maintained by the Company or any subsidiary,
(C) by any underwriter temporarily holding securities pursuant to an
offering of such securities, (D) pursuant to a Non-Control Transaction
(as defined in paragraph (iii)), or (E) a transaction (other than one
described in (iii) below) in which Company Voting Securities are
acquired from the Company, if a majority of the Incumbent Board (as
defined below) approves a resolution providing expressly that the
acquisition pursuant to this clause (E) does not constitute a Change in
Control under this paragraph (i);
(ii) individuals who, on the Effective Date, constitute the
Board (the "Incumbent Board") cease for any reason to constitute at
least a majority thereof, provided that any person becoming a director
subsequent to the Effective Date, whose election or nomination for
election was approved by a vote of at least two-thirds of the directors
comprising the Incumbent Board (either by a specific vote or by
approval of the proxy statement of the Company in which such person
<PAGE>
is named as a nominee for director, without objection to such
nomination) shall be considered a member of the Incumbent Board;
provided, however, that no individual initially elected or nominated as
a director of the Company as a result of an actual or threatened
election contest with respect to directors or any other actual or
threatened solicitation of proxies or consents by or on behalf of any
person other than the Board shall be deemed to be a member of the
Incumbent Board;
(iii) the shareholders of the Company approve a merger,
consolidation, share exchange or similar form of corporate
reorganization of the Company or any such type of transaction involving
the Company or any of its subsidiaries (whether for such transaction or
the issuance of securities in the transaction or otherwise) (a
"Business Combination"), unless immediately following such Business
Combination: (A) more than 50% of the total voting power of the
publicly traded corporation resulting from such Business Combination
(including, without limitation, any corporation which directly or
indirectly has beneficial ownership of 100% of the Company Voting
Securities or all or substantially all of the assets of the Company and
its subsidiaries) eligible to elect directors of such corporation would
be represented by shares that were Company Voting Securities
immediately prior to such Business Combination (either by remaining
outstanding or being converted), and such voting power would be in
substantially the same proportion as the voting power of such Company
Voting Securities immediately prior to the Business Combination, (B) no
person (other than any publicly traded holding company resulting from
such Business Combination, any employee benefit plan sponsored or
maintained by the Company (or the corporation resulting from such
Business Combination), or any person which beneficially owned,
immediately prior to such Business Combination, directly or indirectly,
33-1/3% or more of the Company Voting Securities (a "Company 33-1/3%
Stockholder")) would become the beneficial owner, directly or
indirectly, of 33-1/3% or more of the total voting power of the
outstanding voting securities eligible to elect directors of the
corporation resulting from such Business Combination and no Company
33-1/3% Stockholder would increase its percentage of such total voting
power, and (C) at least a majority of the members of the board of
directors of the corporation resulting from such Business Combination
would be members of the Incumbent Board at the time of the Board's
approval of the execution of the initial agreement providing for such
Business Combination (a "Non-Control Transaction"); or
(iv) the shareholders of the Company approve a plan of complete
liquidation or dissolution of the Company or the sale or disposition of
all or substantially all of the Company's assets.
Notwithstanding the foregoing, a Change in Control of the Company shall
not be deemed to occur solely because any person acquires beneficial ownership
of more than 33-1/3% of the Company Voting Securities as a result of the
acquisition of Company
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Voting Securities by the Company which, by reducing the number of Company Voting
Securities outstanding, increases the percentage of shares beneficially owned by
such person; provided, that if a Change in Control of the Company would occur as
a result of such an acquisition by the Company (if not for the operation of this
sentence), and after the Company's acquisition such person becomes the
beneficial owner of additional Company Voting Securities that increases the
percentage of outstanding Company Voting Securities beneficially owned by such
person, then a Change in Control of the Company shall occur.
(d) "Code" shall mean the Internal Revenue Code of 1986, as amended.
(e) "Committee" shall mean a committee of at least two members of
the Board appointed by the Board to administer the Plan and to perform the
functions set forth herein and who are "non-employee directors" within the
meaning of Rule 16b-3 as promulgated under Section 16 of the Exchange Act and
who are also "outside directors" within the meaning of Section 162(m) of the
Code.
(f) "Common Stock" shall mean the common stock, no par value per
share, of the Company.
(g) "Exchange Act" shall mean the Securities Exchange Act of 1934,
as amended.
(h) "Fair Market Value" per share as of a particular date shall mean
the last reported sale price (on the day immediately preceding such date) of the
Common Stock on the NASDAQ National Market List.
(i) "Immediate Family Member" shall mean, except as otherwise
determined by the Committee, a Participant's children, stepchildren,
grandchildren, parents, stepparents, grandparents, spouse, siblings, in-laws and
persons related by reason of legal adoption.
(j) "Incentive Stock Option" shall mean a stock option which is
intended to meet the requirements of Section 422 of the Code.
(k) "Non-Employee Director" shall mean a member of the Board who is
not an employee of the Company or any Subsidiary.
(l) "Nonqualified Stock Option" shall mean a stock option which is
not intended to be an Incentive Stock Option.
(m) "Option" shall mean either an Incentive Stock Option or a
Nonqualified Stock Option.
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(n) "Participant" shall mean an employee, director or consultant of
the Company or its Subsidiaries who is selected to participate in the Plan in
accordance with Section 5.
(o) "Subsidiary" shall mean any subsidiary of the Company that is a
corporation and which at the time qualifies as a "subsidiary corporation" within
the meaning of Section 424(f) of the Code.
3. Shares Subject to the Plan. Subject to adjustment in accordance with
Section 16, the total of the number of shares of Common Stock which shall be
available for the grant of Awards under the Plan shall not exceed 1,250,000
shares; provided, that, for purposes of this limitation, any Option which is
canceled or expires without exercise shall again become available for Awards
under the Plan. Upon forfeiture of Awards in accordance with the provisions of
the Plan, and the terms and conditions of the Award, such shares shall no longer
be counted in any determination of the number of shares available under the Plan
and shall be available for subsequent Awards. Subject to adjustment in
accordance with Section 16, no employee shall be granted in any calendar year
Options to purchase more than 500,000 shares of Common Stock. Shares of Common
Stock available for issue or distribution under the Plan shall be authorized and
unissued shares or shares reacquired by the Company in any manner.
4. Administration. (a) The Plan shall be administered by the Committee.
(b) The Committee shall (i) approve the selection of Participants,
(ii) determine the type of Awards to be made to Participants, (iii) determine
the number of shares of Common Stock subject to Awards, (iv) determine the terms
and conditions of any Award granted hereunder (including, but not limited to,
any restriction and forfeiture conditions on such Award) and (v) have the
authority to interpret the Plan, to establish, amend, and rescind any rules and
regulations relating to the Plan, to determine the terms and provisions of any
agreements entered into hereunder, and to make all other determinations
necessary or advisable for the administration of the Plan. The Committee may
correct any defect, supply any omission or reconcile any inconsistency in the
Plan or in any Award in the manner and to the extent it shall deem desirable to
carry it into effect.
(c) Any action of the Committee shall be final, conclusive and
binding on all persons, including the Company and its Subsidiaries and
shareholders, Participants and persons claiming rights from or through a
Participant.
(d) The Committee may delegate to officers or employees of the
Company or any Subsidiary, and to service providers, the authority, subject to
such terms as the Committee shall determine, to perform administrative functions
with respect to the Plan and Award agreements.
(e) Members of the Committee and any officer or employee of the
Company or any Subsidiary acting at the direction of, or on behalf of, the
Committee shall not be personally liable for any action or determination taken
or made in good faith
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with respect to the Plan, and shall, to the extent permitted by law, be fully
indemnified by the Company with respect to any such action or determination.
5. Eligibility. Individuals eligible to receive Awards under the Plan
shall be the directors, officers, other key employees and selected consultants
of the Company and its Subsidiaries selected by the Committee. In addition, all
Non-Employee Directors shall be eligible to receive Options as provided in
Section 9 hereof.
6. Awards. Awards under the Plan may consist of Options, stock awards
or other awards based on the value of the Common Stock. Awards shall be subject
to the terms and conditions of the Plan and shall be evidenced by an agreement
containing such additional terms and conditions, not inconsistent with the
provisions of the Plan, as the Committee shall deem desirable.
7. Options. Options may be granted under the Plan in such form as the
Committee may from time to time approve pursuant to terms set forth in an Option
agreement. The Committee may alter or waive, at any time, any term or condition
of an Option that is not mandatory under the Plan.
(a) Types of Options. Each Option agreement shall state whether or
not the Option will be treated as an Incentive Stock Option or Nonqualified
Stock Option. Incentive Stock Options shall only be granted to employees of the
Company and its Subsidiaries.
(b) Option Price. The purchase price per share of the Common Stock
purchasable under an Option shall be determined by the Committee, but in the
case of Incentive Stock Options, the Option price will be not less than 100% of
the Fair Market Value of the Common Stock on the date of the grant of the Option
and in the case of Incentive Stock Options granted to an employee owning stock
possessing more than 10% of the total combined voting power of all classes of
stock of the Company and its Subsidiaries (a "10% Shareholder") the price per
share specified in the agreement relating to such Option shall not be less than
110% of the Fair Market Value per share of the Common Stock on the date of
grant.
(c) Option Period. The term of each Option shall be fixed by the
Committee, but no Option shall be exercisable after the expiration of 10 years
from the date the Option is granted, provided, however, that in the case of
Incentive Stock Options granted to 10% Shareholders, the term of such Option
shall not exceed 5 years from the date of grant.
(d) Exercisability. Each Option shall vest and become exercisable at
a rate determined by the Committee at or subsequent to grant.
(e) Method of Exercise. Options may be exercised, in whole or in
part, by giving written notice of exercise to the Company specifying the number
of shares of Common Stock to be purchased. Such notice shall be accompanied by
the payment in
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full of the Option purchase price. Such payment shall be made: (a) in cash, or
(b) to the extent authorized by the Committee, by surrender of shares of Common
Stock owned by the holder of the Option, or (c) through simultaneous sale
through a broker of shares acquired on exercise, as permitted under Regulation T
of the Federal Reserve Board, or (d) through additional methods prescribed by
the Committee, or (e) by a combination of any such methods.
8. Stock Awards. Subject to such performance and employment conditions
as the Committee may determine, awards of Common Stock or awards based on the
value of the Common Stock may be granted either alone or in addition to Options
granted under the Plan. Any Awards under this Section 8 and any Common Stock
covered by any such Award may be forfeited to the extent so provided in the
Award agreement, as determined by the Committee.
9. Non-Employee Director Stock Options.
(a) Initial Grant. Nonqualified Stock Options to purchase 30,000
shares of Common Stock shall be granted automatically to each Non-Employee
Director who is a Non-Employee Director on the day the Board approves the
adoption of the Plan. With respect to each person who becomes a Non-Employee
Director after such date, Nonqualified Stock Options to purchase 30,000 shares
of Common Stock shall be granted automatically to each such Non-Employee
Director on the day he or she first becomes a Non-Employee Director.
(b) Subsequent Options. In addition to the Nonqualified Stock
Options granted to Non-Employee Directors under Section 9(a), Nonqualified Stock
Options to purchase 10,000 shares of Common Stock shall be granted automatically
to each Non-Employee Director, effective on the third anniversary date on which
such director was granted an Initial Option under Section 9(a) and on each
anniversary date thereafter; provided, however, he or she continues to serve as
a Non-Employee Director on such date.
(c) Option Price. The purchase price for each Option granted under
this Section 9 to a Non-Employee Director shall be the Fair Market Value of the
Common Stock on the date of grant of the Option.
(d) Exercisability. Each Initial Option and Subsequent Option
granted under this Section 9 shall become exercisable and vest on the first
anniversary of the date of grant of such Option.
(e) Method of Exercise. Each Option granted under this Section 9 may
be exercised in the same manner as provided in Section 7(e).
(f) Option Period. Each Option granted under this Section 9 shall
terminate 10 years from the date of grant unless sooner terminated by reason of
termination of service as a director of the Company and its Subsidiaries.
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(g) Termination of Director Status.
(i) In the event of termination of service as a director of the
Company and its Subsidiaries for any reason other than cause, death or
permanent disability (as determined by the Committee), an Option
granted under this Section 9 (to the extent exercisable as of the date
of termination) shall be exercisable for a period of 90 days following
such termination of status as director (but in no event beyond the term
of the Option), and shall thereafter terminate. A Non-Employee
Director's status as a director shall not be considered terminated in
the case of a leave of absence agreed to in writing by the Company
(including, but not limited to, military and sick leave); provided,
that, such leave is for a period of not more than 90 days.
(ii) In the event of the death of a Non-Employee Director while
a director of the Company or any Subsidiaries, the Option (to the
extent exercisable as of the date of death), shall be exercisable by
any prior transferee or by the Non-Employee Director's designated
beneficiary, or if none, the person(s) to whom such Non-Employee
Director's rights under the Option are transferred by will or the laws
of descent and distribution for 180 days following the date of death
(but in no event beyond the term of the Option), and shall thereafter
terminate.
(iii) In the event of the termination of service as a director
of the Company and its Subsidiaries due to permanent disability (as
determined by the Committee), the Option (to the extent exercisable as
of the date of termination), shall be exercisable for 180 days
following such termination of service (but in no event beyond the term
of the Option), and shall thereafter terminate.
(iv) In the event of the termination of service as a director of
the Company and its Subsidiaries for cause (as determined by the
Committee in its sole discretion), the Option shall terminate upon such
termination of status as director, regardless of whether the Option was
then exercisable.
(h) Except as expressly provided in this Section 9, any Option
granted to a Non-Employee Director hereunder shall be subject to the terms and
conditions of the Plan.
10. Change in Control. Upon the occurrence of a Change in Control, all
Options shall automatically become vested and exercisable in full and all
restrictions or conditions, if any, on any stock awards granted hereunder shall
automatically lapse. The Committee may, in its discretion, include such further
provisions and limitations in any agreement documenting such Options as it may
deem equitable and in the best interests of the Company.
11. Forfeiture. Notwithstanding anything in the Plan to the contrary,
the Committee may provide in any Award agreement that in the event of a serious
breach of
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conduct by the person granted such Award (including, without limitation, any
conduct prejudicial to or in conflict with the Company or its Subsidiaries), or
any activity of any such person in competition with any of the businesses of the
Company or any Subsidiary, (a) cancel any outstanding Award granted to such
person, in whole or in part, whether or not vested, and/or (b) if such conduct
or activity occurs within 1 year following the exercise or payment of an Award,
require such person to repay to the Company any gain realized or payment
received upon the exercise or payment of such Award (with such gain or payment
valued as of the date of exercise or payment). Such cancellation or repayment
obligation shall be effective as of the date specified by the Committee. Any
repayment obligation may be satisfied in Common Stock or cash or a combination
thereof (based upon the Fair Market Value of Common Stock on the day prior to
the date of payment), and the Committee may provide for an offset to any future
payments owed by the Company or any Subsidiary to such person if necessary to
satisfy the repayment obligation. The determination of whether any such person
has engaged in a serious breach of conduct or any activity in competition with
any of the businesses of the Company or any Subsidiary shall be determined by
the Committee in good faith and in its sole discretion. This Section 11 shall
have no application following a Change in Control.
12. Withholding. The Company shall have the right to deduct from any
payment to be made pursuant to the Plan the amount of any taxes required by law
to be withheld therefrom, or to require a Participant to pay to the Company in
cash such amount required to be withheld prior to the issuance or delivery of
any shares of Common Stock or the payment of cash under the Plan. Such taxes may
be paid by (a) delivering previously owned shares of Common Stock or (b) having
the Company retain shares of Common Stock which would otherwise be delivered
upon exercise or payment of Awards or (c) any combination of a cash payment or
the methods set forth in (a) and (b) above. For purposes of (a) and (b) above,
shares of Common Stock shall be valued at Fair Market Value determined as of the
day immediately prior to exercise or payment. If and to the extent authorized by
the Committee, the Company may, upon election by a Participant, withhold from
any distribution of Common Stock hereunder shares of Common Stock with a Fair
Market Value in excess of the Participant's required withholding obligation.
13. Nontransferability, Beneficiaries. Unless otherwise determined by
the Committee with respect to the transferability of Nonqualified Stock Options
by a Participant to his Immediate Family Members (or to trusts or partnerships
or limited liability companies established for such family members), no Award
shall be assignable or transferable by the Participant, otherwise than by will
or the laws of descent and distribution or pursuant to a beneficiary
designation, and Options shall be exercisable, during the Participant's
lifetime, only by the Participant (or by the Participant's legal representatives
in the event of the Participant's incapacity). Each Participant may designate a
beneficiary to exercise any Option held by the Participant at the time of the
Participant's death or to be assigned any other Award outstanding at the time of
the Participant's death. If no beneficiary has been named by a deceased
Participant, any Award held by the Participant at the time of death shall be
transferred as provided in his
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will or by the laws of descent and distribution. Except in the case of the
holder's incapacity, an Option may only be exercised by the holder thereof.
14. No Right to Employment. Nothing contained in the Plan or in any
Award under the Plan shall confer upon any employee any right with respect to
the continuation of employment with the Company or any of its Subsidiaries, or
interfere in any way with the right of the Company to terminate his or her
employment at any time. Nothing contained in the Plan shall confer upon any
employee or other person any claim or right to any Award under the Plan.
15. Governmental Compliance. Each Award under the Plan shall be subject
to the requirement that if at any time the Committee shall determine that the
listing, registration or qualification of any shares issuable or deliverable
thereunder upon any securities exchange or under any Federal or state law, or
the consent or approval of any governmental regulatory body, is necessary or
desirable as a condition thereof, or in connection therewith, no such grant or
award may be exercised or shares issued or delivered unless such listing,
registration, qualification, consent or approval shall have been effected or
obtained free of any conditions not acceptable to the Committee.
16. Adjustments. In the event of any change in the outstanding shares of
Common Stock by reason of any stock dividend or split, recapitalization, merger,
consolidation, spin-off, combination or exchange of shares or other corporate
change, or any distribution to holders of Common Stock other than regular cash
dividends, the number or kind of shares available for Options and Awards under
the Plan may be adjusted by the Committee as it shall in its sole discretion
deem equitable and the number and kind of shares subject to any outstanding
Awards granted under the Plan and the purchase price thereof may be adjusted by
the Committee as it shall in its sole discretion deem equitable to preserve the
value of such Awards.
17. Award Agreement. Each Award under the Plan shall be evidenced by an
agreement setting forth the terms and conditions, as determined by the
Committee, which shall apply to such Award, in addition to the terms and
conditions specified in the Plan.
18. Amendment. The Board may amend, suspend or terminate the Plan or any
portion thereof at any time, provided that (a) except as provided in Section 16,
no amendment shall be made that would adversely affect the rights of a
Participant under an Award theretofore granted, without such Participant's
written consent and (b) if and when the Plan is approved by the shareholders of
the Company, no amendment made after such approval shall be made without
shareholder approval if such approval is necessary to comply with any applicable
law, regulation or stock exchange rule.
19. General Provisions.
(a) The Committee may require each Participant purchasing or
acquiring shares pursuant to an Award under the Plan to represent to and agree
with the Company
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<PAGE>
in writing that such Participant is acquiring the shares for investment and
without a view to distribution thereof.
(b) All certificates for shares of Common Stock delivered under the
Plan pursuant to any Award shall be subject to such stock-transfer orders and
other restrictions as the Committee may deem advisable under the rules,
regulations, and other requirements of the Securities and Exchange Commission,
any stock exchange upon which the Common Stock is then listed, and any
applicable Federal or state securities law, and the Committee may cause a legend
or legends to be put on any such certificates to make appropriate reference to
such restrictions. If the Committee determines that the issuance of shares of
Common Stock hereunder is not in compliance with, or subject to an exemption
from, any applicable Federal or state securities laws, such shares shall not be
issued until such time as the Committee determines that the issuance is
permissible.
(c) It is the intent of the Company that the Plan satisfy, and be
interpreted in a manner that satisfies, the applicable requirements of Rule
16b-3 as promulgated under Section 16 of the Exchange Act so that Participants
will be entitled to the benefit of Rule 16b-3, or any other rule promulgated
under Section 16 of the Exchange Act, and will not be subject to short-swing
liability under Section 16. Accordingly, if the operation of any provision of
the Plan would conflict with the intent expressed in this Section 19(c), such
provision to the extent possible shall be interpreted and/or deemed amended so
as to avoid such conflict.
(d) Except as otherwise provided by the Committee in the applicable
grant or Award agreement, a Participant shall have no rights as a shareholder
with respect to any shares of Common Stock subject to Options until a
certificate or certificates evidencing shares of Common Stock shall have been
issued to the Participant and, subject to Section 16, no adjustment shall be
made for dividends or distributions or other rights in respect of any share for
which the record date is prior to the date on which Participant shall become the
holder of record thereof.
(e) The law of the State of New Jersey shall apply to all Awards and
interpretations under the Plan regardless of the effect of such state's conflict
of laws principles.
(f) Where the context requires, words in any gender shall include
any other gender.
20. Term of Plan. Subject to earlier termination pursuant to Section 18,
the Plan shall have a term of 10 years from its Effective Date.
21. Effective Date. The Plan is effective as of July 24, 1997.
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EXHIBIT 5.1
April 15, 1998
Dendrite International, Inc.,
1200 Mount Kemble Avenue,
Morristown, NJ 07960-6797.
Dear Sirs:
In connection with the registration under the Securities Act of 1933
(the "Act") of 500,000 shares of Common Stock ("Common Stock"), without par
value, of Dendrite International, Inc., a New Jersey corporation (the
"Company"), some of which may be newly issued Common Stock by the Company after
the date hereof pursuant to the terms of the 1997 Stock Incentive Plan (the
"Securities"), we, as your special counsel, have examined such corporate
records, certificates and other documents, and such questions of law, as we have
considered necessary or appropriate for the purposes of this opinion. Upon the
basis of such examination, we advise you that, in our opinion, when the
registration statement relating to the Securities (the "Registration Statement")
has become effective under the Act, the terms of the issue and sale of the
Securities have been duly established in conformity with the Company's
certificate of incorporation, and the Securities have been duly issued and sold
as contemplated by the Registration Statement and the terms of the 1997 Stock
Incentive Plan under which such Securities are to
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Dendrite International, Inc. Page 2
be issued, the Securities will be validly issued, fully paid and nonassessable.
The foregoing opinion is limited to the Federal laws of the United
States and the Business Corporation Act of the State of New Jersey, and we are
expressing no opinion as to the effect of the laws of any other jurisdiction.
We have relied as to certain matters on information obtained from
public officials, officers of the Company and other sources believed by us to be
responsible.
We hereby consent to the filing of this opinion as an exhibit to the
Registration Statement. In giving such consent, we do not thereby admit that we
are in the category of persons whose consent is required under Section 7 of the
Act.
Very truly yours,
SULLIVAN & CROMWELL
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EXHIBIT 23.2
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
As independent public accountants, we hereby consent to the incorporation by
reference in this S-8 Registration Statement (File No. 333-35701) of our report
dated February 4, 1998 included in Dendrite International, Inc.'s Form 10-K for
the year ended December 31, 1997 and to all references to our Firm included in
this Registration Statement.
ARTHUR ANDERSEN LLP
Philadelphia, Pa.
April 16, 1998
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