Document:

exv10w17

 

     EXHIBIT 10.17

SEPARATION AND RELEASE AGREEMENT

     This SEPARATION AND RELEASE AGREEMENT (the “Agreement”) is made and
entered into by and between Raindance Communications, Inc. (“Raindance” or “the
Company”) and Paul Berberian (“Mr. Berberian”) (collectively “parties”) as of
the Execution Date of this Agreement defined in Paragraph 26 below.

I. RECITALS

     WHEREAS, both parties desire that Mr. Berberian terminate his employment
with Raindance effective as of the close of business on December 31, 2003; and

     WHEREAS, the parties wish to make the separation amicable but conclusive
on the terms and conditions set forth herein; and

     WHEREAS, Mr. Berberian accepts the benefits of this Separation and Release
Agreement with the acknowledgment that by its terms he has been fully and
satisfactorily compensated; and

     WHEREAS, the parties agree that this Separation and Release Agreement
supercedes, replaces and extinguishes any and all other rights and obligations
between the parties related to Mr. Berberian’s employment at Raindance,
including but not limited to, any rights and obligations contained in the
Personal Services Agreement entered into by Mr. Berberian with the Company on
November 17, 1999, and the Amendment to that Personal Services Agreement dated
June 26, 2002.

II. COVENANTS

     THEREFORE, in consideration of the Recitals set forth above which are
incorporated herein by reference and of the mutual promises and covenants
contained in this Separation and Release Agreement, it is hereby agreed by and
between the parties hereto as follows:

     1. Resignation. Effective as of December 31, 2003 (“Separation Date”),
Mr. Berberian’s employment with Raindance shall cease. Mr. Berberian hereby
acknowledges his termination as Chief Executive Officer. Notwithstanding his
termination as an employee, Mr. Berberian shall continue to serve as a Director
and as Chairman of the Company’s Board of Directors. Upon the request of the
Board, Mr. Berberian agrees to resign as Chairman or as a Director, or both.
Mr. Berberian agrees not to resign voluntarily as Chairman or as a Director
until the Board elects a new permanent Chief Executive Officer.

     2. Compensation. Mr. Berberian will continue to receive his salary,
bonus, and benefits through the Separation Date. Raindance will compensate Mr.
Berberian for all accrued compensation and vacation as of the Separation Date.

     3. Consideration. Although Raindance has no policy or procedure requiring
payment of any severance benefits, Raindance agrees to the following as part of
this Separation and Release Agreement.

          (a) Severance Benefits. Raindance will make severance payments to Mr.
Berberian in the form of continuation of his Base Salary in effect on the
Separation Date for a period of eighteen (18) months commencing on the first
business day following the Separation Date (“Severance Period”). These
payments will be made on Raindance’s ordinary payroll dates, and will be
subject to standard payroll deductions and withholding. Raindance shall also
pay to Mr. Berberian a bonus of $232,500 for 2004. Payment of the bonus shall
be made no earlier than January 1, 2005 and no later than January 31, 2005.
All payments made during the Severance Period are expressly conditioned on Mr.
Berberian’s compliance with his obligations under the Separation and Release
Agreement, including but not limited to, Paragraphs 10, 11 and 15 of the
Separation and Release Agreement.

 

 

          (b) Health Insurance. To the extent permitted by federal COBRA law, Mr.
Berberian will be eligible to continue health insurance benefits for him and
his family and, later, to convert to an individual policy. Raindance will
provide Mr. Berberian a COBRA notification form setting forth his rights and
responsibilities with regard to COBRA coverage. Should Mr. Berberian timely
elect to continue coverage pursuant to COBRA, Raindance agrees to pay COBRA
premiums for him and his family for eighteen (18) months commencing on the
Separation Date in order for Mr. Berberian to maintain health insurance that is
substantially equivalent to his coverage immediately prior to the Separation
Date (“COBRA Reimbursement Period”), or at Mr. Berberian’s election, Raindance
will directly reimburse Mr. Berberian for such premiums. In any event, and
notwithstanding any provision to the contrary in this Paragraph, Raindance
shall have no obligation to make any payments for COBRA premiums paid for
health insurance coverage beyond the expiration of the COBRA Reimbursement
Period. Raindance shall make payments pursuant to this section within 15 days
of Mr. Berberian’s provision of proper documentation of the expense.

          (c) Life Insurance. Upon the Separation Date, Raindance will execute all
documents necessary to transfer any personal life insurance policies to him.
Raindance shall reimburse Mr. Berberian for the cost of such policies on his
life during the Severance Period.

          (d) Stock Options. Mr. Berberian is the holder of options to purchase
842,755 shares of Raindance common stock. The dates of grant and exercise
prices for those options are set forth on Exhibit A to this Agreement. In
consideration for the covenants, promises and agreements contained in this
Separation and Release Agreement including, but not limited to, the covenants
contained in Paragraphs 10 and 11, and in accordance with provisions of his
Personal Services Agreement applicable to a termination of employment by
Raindance without cause or by Mr. Berberian for good reason, all such options
shall become fully exercisable as of the Separation Date and the period for
exercise of such Options shall be extended so that it shall remain exercisable
for three years from the Separation Date.

          (e) Shares. Mr. Berberian (or affiliated entities) are the holders of
2,221,799 shares of Raindance common stock. 200,000 shares are subject to
forfeiture and will be cancelled as of the Separation Date. The remaining
2,021,799 shares will be retained by Mr. Berberian (or affiliated entities).
Following Mr. Berberian’s resignation from the board of directors, Raindance
agrees, subject only to legal restrictions imposed by federal or state
securities laws, to take all actions reasonably required to remove all
restrictions on such shares as soon as such removal is legally permissible in
order to permit Mr. Berberian (or affiliated entities) to sell such shares in
the open market without restriction.

          (f) Business Support. For a period of eight (8) months from the
Separation Date, Raindance shall provide reasonable executive administrative
support and technical IT support for Mr. Berberian. Mr. Berberian agrees that
such executive administrative support is intended to be reducing in scope and
amount during such eight-month period, and he further agrees to use his best
efforts for his personal communications and computer resources to become
independent of the Raindance IT system by April 1, 2004. In addition,
Raindance will agree to support and maintain the Internet address and Microsoft
exchange server Outlook email support of berberian.com during the Severance
Period.

     4. Other Compensation. Except as expressly provided herein, including but
not limited to Mr. Berberian’s receipt of his salary through the Separation
Date, Mr. Berberian acknowledges and agrees that he will not receive (nor is he
entitled to receive) any additional consideration, payments, reimbursements,
stock or benefits of any kind.

     5. Business Expense Reimbursement. Raindance agrees to reimburse Mr.
Berberian for those reasonable business expenses he necessarily incurs in his
capacity as a Raindance employee through the Separation Date consistent with
Raindance’s policies in this regard. Mr. Berberian acknowledges and agrees
that unless expressly referenced herein, Raindance will not reimburse him for
any expenses he incurs after the Separation Date. Mr. Berberian must submit
the necessary documentation establishing the amount, date and reason for
expenses he incurred and for which he seeks reimbursement no later than 30 days
after the Separation Date. The Compensation Committee may review and evaluate
any such expense to determine whether such business expense will be reimbursed.

     6. Non-Interference. Mr. Berberian agrees that he will not discuss any
confidential aspect of Raindance’s business or affairs with any employee,
stockholder, customer, vendor, strategic partner of Raindance or other third
party, except as may be requested by Raindance from time to time, as may be
otherwise agreed to by Raindance, or as he is legally entitled to as a
shareholder of Raindance.

 

 

     7. Non-Disparagement. Each of Raindance and Mr. Berberian agree to not,
at any time, disparage the other party to third parties in any manner likely to
be harmful to the other party’s business or personal reputation, or the
personal or business reputation of Raindance’s directors, shareholders and/or
employees. Notwithstanding the prohibition in the preceding sentence, each
party shall respond accurately and fully to any question, inquiry, or request
for information when required by legal process. Each party acknowledges and
agrees that this paragraph 7 is a material consideration to the other party’s
entering into this Separation and Release Agreement and that breach of this
paragraph 7 constitutes a material breach of the Separation and Release
Agreement.

     8. Cooperation in Pending Work. Prior to the Separation Date and for two
(2) months after selection of a permanent CEO, Mr. Berberian agrees to fully
cooperate with Raindance in all matters relating to the winding up of his
pending work on behalf of Raindance and the orderly transfer of work to his
permanent CEO replacement. In addition, at such time as a new chair is
selected for the Raindance Board of Directors, Berberian also agrees to fully
cooperate in the orderly transfer of work to his Chair replacement. During the
Severance Period, Mr. Berberian shall also cooperate in the resolution of any
dispute, including litigation of any action, involving Raindance that relates
in any way to Mr. Berberian’s activities while employed by Raindance.
Raindance shall pay Mr. Berberian’s reasonable out-of-pocket expenses incurred
in connection with his services in this regard.

     9. Raindance Property. Except as expressly identified herein as items to
be retained by Mr. Berberian (“Retained Property”), Mr. Berberian agrees to
return to Raindance all Raindance documents (and all copies thereof) and any
and all other Raindance property in Mr. Berberian’s possession, custody or
control, including, but not limited to, financial information, customer
information, customer lists, employee lists, Raindance files, notes, cellular
telephones, personal computers, contracts, drawings, records, business plans
and forecasts, financial information, specifications, computer-recorded
information, software, tangible property, credit cards, entry cards,
identification badges and keys, and any materials of any kind which contain or
embody any proprietary or confidential material of Raindance (and all
reproductions thereof) (the “Raindance Property”). For purposes of this
Separation and Release Agreement, the Retained Property is identified as the
following items: the desktop computer (including associated standard packaged
software applications to the extent legally transferable without the payment of
additional fees by Raindance to an individual not associated with Raindance),
laptop computer, monitor, printer, cell phone, PDA, and all personal office
furniture used by Mr. Berberian in his day-to-day services for Raindance. The
Retained Property will also include the berberian.com domain name, which will
be transferred to Mr. Berberian. Mr. Berberian acknowledges and agrees that
Raindance shall have the right and opportunity to sterilize the Retained
Property of any such Raindance Property prior to the Separation Date, and Mr.
Berberian shall cooperate and permit Raindance to accomplish these efforts.
Raindance may cause to be issued to Mr. Berberian an IRS Form 1099 reflecting
the depreciated book value of the Retained Property.

     10. Non-Competition. Mr. Berberian acknowledges and agrees that during
his employment with Raindance, he had access to confidential and proprietary
business and technological information belonging to Raindance. As a condition
to receiving the severance payments contained in this Separation and Release
Agreement, and in order to protect the confidential information and customer
relationships to which Mr. Berberian had access, and to protect the good will
and other business interests of Raindance, Mr. Berberian agrees to the
following provisions:

          (a) Mr. Berberian covenants and agrees with Raindance that for a period of
twenty-four (24) months from the Separation Date, Mr. Berberian will not engage
or participate, directly or indirectly, as principal, agent, employee,
employer, consultant, advisor, sole proprietor, stockholder, partner,
independent contractor, trustee, joint venturer or in any other individual or
representative capacity whatever, in the conduct or management of, or own any
stock or other proprietary interest in, or debt of, any business organization,
person, firm, partnership, association, corporation, enterprise or other entity
that shall be engaged in any business (whether in operation or in the planning,
research or development stage) that is a Competitive Business anywhere in the
Restricted Territory, unless Mr. Berberian shall obtain the prior written
consent of the Board, given in its sole discretion, which consent shall make
express reference to this Separation and Release Agreement. Notwithstanding the
foregoing, Mr. Berberian may make passive investments in any company whose
stock is listed on a national securities exchange or traded in the
over-the-counter market so long as he does not come to own, directly or
indirectly, more than one percent (1%) of the equity securities of such
company. For purposes of this Separation and Release Agreement, a business
shall be considered a “Competitive Business” if it involves or relates to
audio-conferencing, web-conferencing, or video-conferencing services. The term
“Restricted Territory” shall mean each and every county, province, state, city
or other political subdivision of the United States.

 

 

          (b) During the period of twenty-four (24) months from the Separation Date,
Mr. Berberian shall not engage in any of the following conduct:

(i) Hire, attempt to hire or assist any other person or entity
in hiring or attempting to hire any current employee of
Raindance or any person who was a Raindance employee within
the three (3) month period prior to the Separation Date of Mr.
Berberian’s employment; provided, however that this
prohibition on solicitation of Raindance’s employees shall not
apply to the person acting as Mr. Berberian’s current
executive assistant, Kristi Moon, as of the date of
termination of Mr. Berberian’s employment;

(ii) Solicit, divert, or take away, in competition with
Raindance, the business or patronage of any current Raindance
customer. Notwithstanding the foregoing, this restriction
shall not apply to any person or entity who is no longer a
customer at the time of any such solicitation by Mr.
Berberian.

          (c) Mr. Berberian agrees that if he acts in violation of Paragraph 10 or
Paragraph 11 of this Separation and Release Agreement, the number of days that
such violation exists will be added to any period of limitations on the
specific activities.

          (d) The covenants contained in Paragraph 10(a) shall be construed as a
series of separate covenants, one for each county, province, state, city or
other political subdivision of the Restricted Territory. Except for geographic
coverage, each such separate covenant shall be deemed identical in terms to the
covenant contained in Paragraph 10(a). If, in any judicial proceeding, a court
refuses to enforce any of such separate covenants (or any part thereof), then
such unenforceable covenant (or such part) shall be eliminated from this
Separation and Release Agreement to the extent necessary to permit the
remaining separate covenants (or portions thereof) to be enforced. In the event
that the provisions of this Paragraph 10 are deemed to exceed the time,
geographic or scope limitations permitted by applicable law, then such
provisions shall be reformed to the maximum time, geographic or scope
limitations, as the case may be, permitted by applicable laws.

          (e) Without limitation of any of the provisions of this Paragraph 10, any
payments to be made to Mr. Berberian during the Severance Period shall be
deemed to secure his agreements set forth in this Paragraph 10 and such
payments may be terminated by the Raindance if Mr. Berberian fails to observe
the agreements set forth in this Paragraph 10 and fails to cure such failure
within ten (10) days of receipt of written notice of such failure.

          (f) Mr. Berberian (i) acknowledges that his skills and experience are such
that he can anticipate finding employment at a senior level in his profession,
and (ii) represents and agrees that the restrictions imposed by this Paragraph
10 on engaging in competitive business activities are necessary for the
protection of the legitimate interests and competitive position of Raindance
and do not impose undue hardships on him.

     11. Confidentiality.

          (a) Confidential Information. Mr. Berberian acknowledges that he has had
access to certain information related to the business, operations, future plans
and customers of Raindance, the disclosure or use of which could cause
Raindance substantial losses and damages. Accordingly, Mr. Berberian covenants
that he will keep confidential all information and documents furnished to him
by or on behalf of Raindance and not use the same to his advantage, except to
the extent such information or documents are lawfully obtained from other
sources on a non-confidential (as to Raindance) basis or are in public domain
through no fault on his part or is consented to in writing by Raindance.

          (b) Innovations, Patents, and Copyrights. Mr. Berberian agrees to promptly
disclose, in writing, all Innovations to Raindance. Mr. Berberian further
agrees to provide all assistance requested by Raindance, at its expense, in the
preservation of its interests in any Innovations, and hereby assigns and agrees
to assign to Raindance all rights, title and interest in and to all worldwide
patents, patent applications, copyrights, trade secrets and other intellectual
property rights or “Moral Rights” in any Innovation.

 

 

     “Innovations” shall mean all developments, improvements, designs, original
works of authorship, formulas, processes, software programs, databases, and
trade secrets, whether or not patentable, copyrightable or protectable as trade
secrets, that Mr. Berberian by himself or jointly with others, created,
modified, developed, or implemented during the period of Mr. Berberian’s
employment which relate in any way to Raindance’s business. The term
Innovations shall not include Innovations developed entirely on Mr. Berberian’s
own time without using Raindance’s equipment, supplies, facilities or
Confidential Information, and which neither relate to Raindance’s business, nor
result from any work performed by or for Raindance.

     12. Right To Injunctive Relief. Mr. Berberian agrees and acknowledges
that a violation of the covenants contained in Paragraphs 10 and 11 of this
Separation and Release Agreement will cause irreparable damage to Raindance,
and that it is and may be impossible to estimate or determine the damage that
will be suffered by Raindance in the event of a breach by Mr. Berberian of any
such covenant. Therefore, Mr. Berberian further agrees that in the event of any
violation or threatened violation of such covenants, Raindance shall be
entitled as a matter of course to an injunction out of any court of competent
jurisdiction restraining such violation or threatened violation by Mr.
Berberian. Such right to an injunction to be cumulative and in addition to
whatever other remedies Raindance may have.

     13. Denial Of Liability. The parties acknowledge that any payment by
Raindance and any release by Mr. Berberian pursuant to this Separation and
Release Agreement are made in compromise of disputed claims, that in making any
such payment or release, Raindance and Mr. Berberian in no way admit any
liability to each other, and that the parties expressly deny any such
liability.

     14. Non-Disclosure Of Agreement. Mr. Berberian acknowledges that
confidentiality and nondisclosure are material considerations for Raindance
entering into this Separation and Release Agreement. As such, the provisions
of this Separation and Release Agreement shall be held in strictest confidence
and shall not be publicized or disclosed in any manner whatsoever, including
but not limited to, the print or broadcast media, any public network such as
the Internet, any other outbound data program such as computer generated mail,
reports or faxes, or any source likely to result in publication or computerized
access. Notwithstanding the prohibition in the preceding sentence: (a) the
parties may disclose this Separation and Release Agreement in confidence to
their respective attorneys, accountants, auditors, tax preparers, and financial
advisors; (b) Raindance may disclose this Separation and Release Agreement as
necessary to fulfill standard or legally required corporate or public reporting
or disclosure requirements; (c) Raindance may disclose this Separation and
Release Agreement upon request from any government entity; and (d) the parties
may disclose this Separation and Release Agreement insofar as such disclosure
may be necessary to enforce its terms or as otherwise required by law. In the
event that Raindance makes a public disclosure of this document pursuant to the
exceptions set forth above, Mr. Berberian will be released from the obligations
set forth in this paragraph.

     15. Releases.

          (a) Release of Claims by Mr. Berberian. In consideration for the
consideration set forth in this Separation and Release Agreement and the mutual
covenants of Raindance and Mr. Berberian, Mr. Berberian hereby releases,
acquits and forever discharges Raindance, its affiliated corporations and
entities, its and their officers, directors, agents, representatives, servants,
attorneys, employees, shareholders, successors and assigns of and from any and
all claims, liabilities, demands, causes of action, costs, expenses, attorneys’
fees, damages, indemnities and obligations of every kind and nature, in law,
equity, or otherwise, known or unknown, suspected and unsuspected, disclosed
and undisclosed, liquidated or contingent, arising out of or in any way related
to agreements, events, acts or conduct at any time prior to and including the
Execution Date, including but not limited to: any and all such claims and
demands directly or indirectly arising out of or in any way connected with Mr.
Berberian’s employment with Raindance or the conclusion of that employment;
claims or demands related to salary, bonuses, commissions, stock, stock
options, or any ownership interests in Raindance, vacation pay, personal time
off, fringe benefits, expense reimbursements, sabbatical benefits, severance
benefits, or any other form of compensation; claims pursuant to any federal,
any state or any local law, statute, common law or cause of action including,
but not limited to, the federal Civil Rights Act of 1964, as amended;
attorneys’ fees, costs, and other expenses under Title VII of the federal Civil
Rights Act of 1964, or any other statute, agreement or source of law; the
federal Americans with Disabilities Act of 1990; the Family and Medical Leave
Act; Colorado Fair Employment Act; tort law; contract law; wrongful discharge;
discrimination; harassment; fraud; defamation; libel; emotional distress; and
breach of the implied covenant of good faith and fair dealing. Mr. Berberian
agrees that in the event he brings a claim covered by this release in which he
seeks

 

 

 damages against Raindance or in the event he seeks to recover against
Raindance in any claim brought by a governmental agency on his behalf, this
Separation and Release Agreement shall serve as a complete defense to such
claims. Notwithstanding the foregoing, nothing in this paragraph shall release
the Company’s obligation to indemnify Mr. Berberian in accordance with the
indemnification obligations set forth in the Company’s Certificate of
Incorporation, Bylaws, the Indemnity Agreement between the Company and Mr.
Berberian and under any applicable law. Notwithstanding anything to the
contrary herein, this release shall not extend to liabilities or claims
resulting from criminal conduct as determined by a criminal court of law.

          (b) Release of Claims by Raindance. In consideration for the
consideration set forth in this Separation and Release Agreement and the mutual
covenants of Raindance and Mr. Berberian, Raindance hereby releases, acquits
and forever discharges Mr. Berberian, his affiliated corporations and entities,
its and their officers, directors, agents, representatives, servants,
attorneys, employees, shareholders, successors and assigns of and from any and
all claims, liabilities, demands, causes of action, costs, expenses, attorneys’
fees, damages, indemnities and obligations of every kind and nature, in law,
equity, or otherwise, that Raindance knows or reasonably could have known,
liquidated or contingent, arising out of or in any way related to agreements,
events, acts or conduct at any time prior to and including the Execution Date,
including but not limited to: any and all such claims and demands directly or
indirectly arising out of or in any way connected with Mr. Berberian’s
employment with Raindance or the conclusion of that employment; claims or
demands related to pursuant to any federal, any state or any local law,
statute, common law or cause of action or any other statute, agreement or
source of law; tort law; contract law; discrimination; harassment; fraud;
defamation; libel; emotional distress; and breach of the implied covenant of
good faith and fair dealing (collectively each of these shall be referred to as
“Claims” or “Liabilities”). Raindance agrees that in the event it brings a
claim covered by this release in which it seeks damages against Raindance or in
the event it seeks to recover against Raindance in any claim brought by a
governmental agency on his behalf, this Separation and Release Agreement shall
serve as a complete defense to such claims. Notwithstanding anything to the
contrary herein, this release shall not extend to Liabilities or Claims that
were unknown to Raindance or could not reasonably have been known to Raindance
or Claims and Liabilities resulting from criminal conduct as determined by a
criminal court of law.

     16. Tax Consequences. Mr. Berberian agrees to indemnify Raindance and
hold Raindance harmless from any and all claims or penalties asserted against
Raindance for any failure to pay taxes due on any consideration provided by
Raindance pursuant to this Separation and Release Agreement. Mr. Berberian
expressly acknowledges that Raindance has not made, nor herein makes, any
representation about the tax consequences of any consideration provided by
Raindance to Mr. Berberian pursuant to this Separation and Release Agreement.

     17. No Third-Party Rights. The parties agree that by making this
Separation and Release Agreement they do not intend to confer any benefits,
privileges, or rights to others. The Separation and Release Agreement is
strictly between the parties hereto, subject to the terms of paragraph 21
below, and it shall not be construed to vest in any other the status of
third-party beneficiary.

     18. Voluntary And Knowingly. Mr. Berberian acknowledges that in executing
this Separation and Release Agreement, he has reviewed it and understands its
terms and had an opportunity and was advised to seek guidance from counsel of
his own choosing, and was fully advised of his rights under law, and acted
knowingly and voluntarily.

     19. Duty To Effectuate. The parties agree to perform any lawful
additional acts, including the execution of additional agreements, as are
reasonably necessary to effectuate the purpose of this Separation and Release
Agreement.

     20. Entire Agreement. This Separation and Release Agreement constitutes
the complete, final, and exclusive embodiment of the entire agreement between
Mr. Berberian and Raindance with regard to the subject matter hereof. This
Separation and Release Agreement is entered into without reliance on any
promise or representation, written or oral, other than those expressly
contained herein. It may not be modified except in a writing that refers to
this Separation and Release Agreement signed by Mr. Berberian and a duly
authorized officer of Raindance.

     21. Successors And Assigns. This Separation and Release Agreement shall
bind the heirs, personal representatives, successors, assigns, executors and
administrators of each party, and inure to the benefit of each party, its

 

 

 heirs, successors and assigns. In furtherance and not limitation of the
foregoing, any payments or consideration due Mr. Berberian under the terms of
this agreement shall inure to the benefit of his surviving spouse.

     22. Applicable Law. This Separation and Release Agreement was entered
into in the State of Colorado, and the parties agree and intend that it be
construed and enforced in accordance with the laws of the State of Colorado.

     23. Forum. Any controversy arising out of or relating to this Separation
and Release Agreement or the breach thereof, or any claim or action to enforce
this Separation and Release Agreement or portion thereof, or any controversy or
claim requiring interpretation of this Separation and Release Agreement must be
brought in a forum located within the State of Colorado. No such action may be
brought in any forum outside the State of Colorado. Any action brought in
contravention of this Paragraph 23 by one party is subject to dismissal at any
time and at any stage of the proceedings by the other, and no action taken by
the other in defending, counterclaiming or appealing shall be construed as a
waiver of this right to immediate dismissal. A party bringing an action in
contravention of this Paragraph 23 shall be liable to the other party for the
costs, expenses and attorneys’ fees incurred in successfully dismissing the
action or successfully transferring the action to a forum located within the
State of Colorado.

     24. Severable. If any provision of this Separation and Release Agreement
is determined to be invalid, void or unenforceable, in whole or in part, this
determination will not affect any other provision of this Separation and
Release Agreement, and the provision in question shall be modified so as to be
rendered enforceable.

     25. Enforce According To Terms. The parties intend this Separation and
Release Agreement to be enforced according to their terms.

     26. Execution Date. This Separation and Release Agreement is effective on
the later of the dates that each party signed this Separation and Release
Agreement (“Execution Date”).

     27. Section Headings. The section and paragraph headings contained in
this Separation and Release Agreement are for reference purposes only and shall
not affect in any way the meaning or interpretation of this Separation and
Release Agreement.

     28. Attorneys’ Fees. If any legal proceeding relating to any of this
Agreement is brought against any party to this Agreement, the prevailing party
shall be entitled to recover reasonable attorneys’ fees, costs and
disbursements (in addition to any other relief to which the prevailing party
may be entitled). Raindance agrees to reimburse Mr. Berberian for his
reasonable attorneys’ fees and costs incurred in connection with the
negotiation and drafting of this Agreement.

     IN WITNESS WHEREOF, the parties have duly authorized and caused this
Separation and Release Agreement to be executed as follows:

	 	 	 	 	 
	PAUL BERBERIAN, an individual	 	RAINDANCE COMMUNICATIONS, INC.
	 	 	 	 	 
	 	 	 	 	 
	/s/ Paul Berberian	 	
By: /s/ Nicholas J. Cuccaro	 	 
	
	 	

	 	 
	Paul Berberian	 	
Its: Chief Financial Officer	 	 
	 	 	

	 	 
	Date: October 14, 2003	 	Date: October 14, 2003<PAGE>
                                                                    EXHIBIT 10.1

                         THERMADYNE HOLDINGS CORPORATION
                             NON-EMPLOYEE DIRECTOR'S
                             STOCK OPTION AGREEMENT

SECTION 1. GRANT OF OPTION.

(a) OPTION. On the terms and conditions set forth in this Agreement and each
Notice of Stock Option Grant referencing this Agreement (the "Notice"), the
Company grants to the Director identified in such Notice (hereinafter, the
"Optionee") on the Date of Grant an option (each, an "Option") to purchase at
the Exercise Price a number of shares of Common Stock, all as set forth in the
Notice. Each such Notice, together with this referenced Agreement, shall be a
separate Option governed by the terms of this Agreement.

(b) DEFINED TERMS. Capitalized terms are defined in Section 9 of this Agreement.

(c) SCOPE OF THIS AGREEMENT. This Agreement shall apply to the Option referenced
in each Notice and to the shares of Common Stock acquired upon the exercise of
such Option.

SECTION 2. RIGHT TO EXERCISE.

         Subject to the conditions set forth in this Agreement, all or part of
an Option may be exercised prior to its expiration at the time or times set
forth in the Notice.

SECTION 3. TRANSFER OR ASSIGNMENT OF OPTION.

(a) GENERALLY. An Option shall be exercisable during the Optionee's lifetime
only by the Optionee. Except as otherwise provided in subsection (b) below, the
Option and the rights and privileges conferred hereby may not be sold, pledged
or otherwise transferred (whether by operation of law or otherwise) other than
by will or the laws of descent and distribution and shall not be subject to sale
under execution, attachment, levy or similar process.

(b) PERMITTED TRANSFERS. The Optionee shall be permitted to transfer the Option,
in connection with his or her estate plan, to the Optionee's spouse, siblings,
parents, children and grandchildren or trusts for the benefit of such persons or
partnerships, corporations, limited liability companies or other entities owned
solely by such persons, including trusts for such persons.

SECTION 4. EXERCISE PROCEDURES.

(a) NOTICE OF EXERCISE. The Optionee or the Optionee's representative may
exercise the Option by giving written notice to the Company specifying the
election to exercise the Option, the number of shares of Common Stock for which
it is being exercised and the Exercise Price and aggregate Purchase Price.
Exhibit A is an example of a "Notice of Exercise". The Notice of Exercise shall
be signed by the person exercising the Option. In the event that the Option is
being exercised by the Optionee's representative, the notice shall be
accompanied by proof

<PAGE>

(satisfactory to the Company) of the representative's right to exercise the
Option. The Optionee or the Optionee's representative shall deliver to the
Company, at the time of giving the notice, payment for the full amount of the
Purchase Price.

(b) ISSUANCE OF COMMON STOCK. After receiving a proper notice of exercise, the
Company shall cause to be issued a certificate or certificates for the shares of
Common Stock as to which the Option has been exercised, registered in the name
of the person exercising the Option (or in the names of such person and his or
her spouse as community property or as joint tenants with right of
survivorship).

(c) TAX OBLIGATIONS. The Company shall not be required to issue shares of Common
Stock upon the exercise of the Option unless the Optionee shall first pay to the
Company such amount, if any, as may be requested by the Company to satisfy any
obligation of the Company to withhold federal, state, local or foreign income or
other taxes relating to the exercise.

(d) SECURITIES REGISTRATION. The Company shall not be obligated to deliver any
shares of Common Stock hereunder until (i) such shares have been listed on each
securities exchange or national market system on which the Common Stock may then
be listed and (ii) all applicable federal and state securities laws applicable
to such issuance have been complied with; provided, however, that the Company
shall use all reasonable efforts to effect any such listing and compliance.

SECTION 5. PAYMENT FOR SHARES OF COMMON STOCK.

         The Purchase Price shall be paid in cash or by check.

SECTION 6. TERM AND EXPIRATION.

(a) BASIC TERM. Subject to earlier termination in accordance with subsection (b)
below, the exercise period of the Option shall expire on the expiration date set
forth in the Notice.

(b) TERMINATION OF SERVICE. If the Optionee's ceases to serve on the Board for
any reason, then the exercise period for the Option shall expire on the earliest
of the following occasions (or such later date as the Board may determine):

                  (i)      The expiration date determined pursuant to subsection
                           (a) above; or

                  (ii)     The later of (x) the date the Optionee ceases to be a
                           member of the Board and (y) if such membership
                           terminates as a result of the death of the Optionee,
                           the date twelve (12) months after the Optionee's
                           death.

The Optionee (or in the case of the Optionee's death, the Optionee's
representative) may exercise all or part of the Option at any time before its
expiration under the preceding sentence, but only to the extent that the Option
had become exercisable for vested shares of Common Stock on or before the date
the Optionee ceased to serve on the Board. When the Optionee's Board service
terminates, the Option shall expire immediately with respect to the number of
shares of Common Stock for which the Option is not yet vested.

                                       2
<PAGE>

SECTION 7. ADJUSTMENT OF SHARES OF COMMON STOCK.

(a) ADJUSTMENT GENERALLY. If there shall be any change in the Common Stock of
the Company, through merger, consolidation, reorganization, recapitalization,
stock dividend, stock split, reverse stock split, split up, spin-off,
combination of shares of Common Stock, exchange of shares of Common Stock,
dividend in kind or other like change in capital structure or distribution
(other than normal cash dividends) to stockholders of the Company, an adjustment
shall be made to the Option so that the Option shall thereafter be exercisable
for such securities, cash and/or other property as would have been received in
respect of the Common Stock subject to the Option had such Option been exercised
in full immediately prior to such change or distribution, and such an adjustment
shall be made successively each time any such change shall occur.

(b) NO FRACTIONAL SHARES. If a fraction of a share of Common Stock would
otherwise result from any adjustment pursuant to subsection (a) above, the
adjusted share amount shall be reduced to the next lower whole number.

SECTION 8. MISCELLANEOUS PROVISIONS.

(a) RIGHTS AS A STOCKHOLDER. Neither the Optionee nor the Optionee's
representative shall have any rights as a stockholder with respect to any shares
of Common Stock subject to the Option until the Optionee or the Optionee's
representative becomes entitled to receive such shares of Common Stock by (i)
filing a Notice of Exercise and (ii) paying the Purchase Price as provided in
this Agreement.

(b) NO RIGHT TO RE-ELECTION. Nothing in the Notice or this Agreement shall be
construed as giving any Director any right to be retained or re-elected as a
member of the Board.

(c) NOTIFICATION. Any notification required by the terms of this Agreement shall
be given in writing and shall be deemed effective upon personal delivery or upon
deposit with the United States Postal Service, by registered or certified mail,
with postage and fees prepaid. A notice shall be addressed to the Company at its
principal executive office and to the Optionee at the address that he or she
most recently provided to the Company.

(d) ENTIRE AGREEMENT. The Notice and this Agreement constitute the entire
contract between the parties hereto with regard to the subject matter hereof.
They supersede any other agreements, representations or understandings (whether
oral or written and whether express or implied) which relate to the subject
matter hereof.

(e) WAIVER. No waiver of any breach or condition of this Agreement shall be
deemed to be a waiver of any other or subsequent breach or condition whether of
like or different nature.

(f) SUCCESSORS AND ASSIGNS. The provisions of this Agreement shall inure to the
benefit of, and be binding upon, the Company and its successors and assigns and
upon the Optionee, the Optionee's assigns and the legal representatives, heirs
and legatees of the Optionee's estate, whether or not any such person shall have
become a party to this Agreement and have agreed in writing to be joined herein
and be bound by the terms hereof.

                                       3
<PAGE>

(g) CHOICE OF LAW. This Agreement shall be governed by, and construed in
accordance with, the laws of the State of Delaware as such laws are applied to
contracts entered into and performed in such State.

SECTION 9. DEFINITIONS.

(a)      "AGREEMENT" shall mean this Stock Option Agreement.

(b)      "BOARD" shall mean the Board of Directors of the Company, as
         constituted from time to time.

(c)      "CHANGE IN CONTROL" shall be deemed to have occurred upon any of the
         following events:

                  (i) Any person (as such term is used in Section 13(d) of the
         Exchange Act) becomes the "beneficial owner" (as determined pursuant to
         Rule 13d-3 under the Exchange Act), directly or indirectly, of
         securities of the Company representing more than fifty percent (50%) of
         the combined voting power of the Company's then outstanding securities;
         or

                  (ii) During any period of two (2) consecutive years (not
         including any period prior to the execution of this Agreement),
         individuals who at the beginning of such period constitute the members
         of the Board, and any new director whose election to the Board or
         nomination for election to the Board by the Company's stockholders was
         approved by a vote of at least two-thirds (2/3) of the directors then
         still in office who either were directors at the beginning of the
         period or whose election or nomination for election was previously so
         approved, cease for any reason to constitute a majority of the Board;
         or

                  (iii) The Company shall merge with or consolidate into any
         other corporation, other than a merger or consolidation which would
         result in the holders of the voting securities of the Company
         outstanding immediately prior thereto holding immediately thereafter
         securities representing more than fifty percent (50%) of the combined
         voting power of the voting securities of the Company or such surviving
         entity outstanding immediately after such merger or consolidation; or

                  (iv) The stockholders of the Company approve and effect a plan
         of complete liquidation of the Company or an agreement for the sale or
         disposition by the Company of all or substantially all of the Company's
         assets.

(d) "CODE" shall mean the Internal Revenue Code of 1986, as amended from time to
time, and the regulations promulgated thereunder.

(e) "COMMON STOCK" shall mean the common stock of the Company, par value $.01.

(f) "COMPANY" shall mean Thermadyne Holdings Corporation, a Delaware
corporation, and any successor thereto.

                                       4
<PAGE>
(g) "DATE OF GRANT" shall mean the date specified in the Notice, which date
shall be the later of (i) the date on which the Board of Directors resolved to
grant the Option or (ii) the first day of the Optionee's service as a member of
the Board.

(h) "DIRECTOR" shall mean a member of the Board who is not (i) an Employee or
(ii) a beneficial owner (as determined in accordance with Rule 13d-3 under the
Exchange Act) of ten percent or more of the Common Stock or an affiliate (as
defined in Rule 12b-2 under the Exchange Act) of such beneficial owner, in each
case as of the Date of Grant.

(i) "ELECTION" shall mean the election described in Section 4(c) hereof.

(j) "EMPLOYEE" shall mean any individual who is a common-law employee of the
Company, a Parent or a Subsidiary.

(k) "EXCHANGE ACT" shall mean the Securities Exchange Act of 1934, as amended.

(l) "EXERCISE PRICE" shall mean the amount for which one share of Common Stock
may be purchased upon exercise of an Option, as specified in the Notice.

(m) "NOTICE" shall have the meaning set forth in Section 1(a) of this Agreement.

(n) "OPTION" shall have the meaning set forth in Section 1(a) of this Agreement.

(o) "OPTIONEE" shall mean the Director named in the Notice.

(p) "PARENT" shall mean a "parent corporation" as defined in Section 424(e) of
the Code.

(q) "PURCHASE PRICE" shall mean the Exercise Price multiplied by the number of
shares of Common Stock with respect to which this option is being exercised.

(r) "SUBSIDIARY" shall mean a "subsidiary corporation" as defined in Section
424(f) of the Code.

                                       5
<PAGE>

                                    EXHIBIT A

                            SAMPLE NOTICE OF EXERCISE

Thermadyne Holdings Corporation
16052 Swingley Ridge Road, Suite 300
St. Louis, Missouri  63017
Attn:  Corporate Secretary

To the Corporate Secretary:

I hereby exercise my stock option granted to me under the Notice dated
__________________ and the related Stock Option Agreement and notify you of my
desire to purchase the shares of Common Stock that have been offered pursuant to
the Agreement as described below.

I shall pay for the shares of Common Stock by delivery of a check payable to
Thermadyne Holdings Corporation (the "Company") in the amount described below in
full payment for such shares of Common Stock.

This notice of exercise is delivered this ___ day of ___________________ (month)
____ (year).

<Table>
<Caption>
No. shares of Common
Stock to be Acquired         Type of Option               Exercise Price       Total Purchase Price
--------------------         --------------               --------------       --------------------
<S>                          <C>                          <C>                  <C>
                             Director Stock Option
</Table>

                                        Very truly yours,

                                        ---------------------------------------
                                        Signature of Optionee

                                        Optionee's Name and Mailing Address

                                        ---------------------------------------

                                        ---------------------------------------

                                        ---------------------------------------

                                        Optionee's Social Security Number

                                        ---------------------------------------

<PAGE>

                              NON-EMPLOYEE DIRECTOR
                          NOTICE OF STOCK OPTION GRANT

<Table>
<S>                                          <C>
   NAME OF OPTIONEE:

   SHARES SUBJECT TO OPTION:                  25,000 shares of common stock, par value $.01 ("Common Stock"), of
                                              Thermadyne Holdings Corporation (the "Company")

   EXERCISE PRICE PER SHARE:                  $13.79

   DATE OF GRANT:                             August 12, 2003

   DATE EXERCISABLE:                          This option may be exercised to the extent the shares of Common Stock
                                              subject to this option have vested at any time after the Date of
                                              Grant.

   VESTING SCHEDULE:                          The option will vest in accordance with the following vesting
                                              schedule:

                                                      VESTED PERCENTAGE                      VESTING DATE

                                                           33 1/3%                         August 12, 2004

                                                           66 2/3%                         August 12, 2005

                                                             100%                          August 12, 2006

   VESTING ACCELERATORS:                      This option will be 100% vested to the extent not otherwise vested on
                                              the date of a Change in Control.

   EXPIRATION DATE:                           August 12, 2013
</Table>

By signing your name below, you accept this option and acknowledge and agree
that this option is granted under and governed by the terms and conditions of
the Thermadyne Holdings Corporation Non-Employee Director Stock Option Agreement
reference number 001-D, which is hereby made a part of this document.

OPTIONEE:                                   THERMADYNE HOLDINGS CORPORATION.

                                            By:
---------------------------------              --------------------------------

Date:                                       Name:  James H. Tate
     ----------------------------           Title: Senior Vice President & CFO

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