UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

 

FORM 8-K

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

 

Date of Report (Date of earliest event reported):

May 15, 2017

 

Concurrent Computer Corporation

 

(Exact Name of Registrant as Specified in its Charter)

 

Delaware 001-37706 04-2735766
(State or Other (Commission (IRS Employer
Jurisdiction File Number) Identification Number)
of Incorporation)    

 

4375 River Green Parkway, Suite 100, Duluth, Georgia 30096
(Address of Principal Executive Offices) (Zip Code)

 

Registrant’s telephone number, including area code:   (678) 258-4000

 

Not applicable

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company ¨

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ¨

 

 

 

 

Item 5.02.      Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

 

Departure of Directors or Certain Officers

 

On May 15, 2017, Concurrent Computer Corporation (the “Company”) announced that Emory O. Berry, the Company’s Chief Financial Officer and Executive Vice President of Operations, will depart the Company on May 15, 2017 (the “Separation Date”) to pursue other opportunities in light of the Company’s previously announced sale of Real-Time. Mr. Berry will receive compensation in accordance with the provisions in his employment agreement regarding termination without due cause, as described in the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on August 6, 2008.

 

The Company also entered into a separation agreement and general release (the “Separation Agreement”) with Mr. Berry. Mr. Berry has the right to revoke the Separation Agreement within seven days of the execution date.  Pursuant to the terms of the Separation Agreement, Mr. Berry will receive severance payments equal to his base salary as in effect on the Separation Date for a period of twelve months, paid in substantially equal installments in accordance with Company’s customary payroll practices, along with continued payment of the Company’s contribution towards his group health benefits for a period of eighteen months.  The Company will also pay to Mr. Berry a lump sum payment of $100,813, less applicable withholding taxes and deductions, which amount represents the annual bonus accrued with respect to Mr. Berry for fiscal year 2017, and is in lieu of the obligation to pay Mr. Berry’s prior year’s bonus contained in his employment agreement. In addition, the Company will accelerate vesting with respect to a pro rata portion of Mr. Berry’s outstanding restricted stock awards and dividends such that a total of 54,686 shares of restricted stock will become vested and $52,319 of dividends will be accelerated on the day immediately preceding the closing date of the transactions contemplated by the asset purchase agreement between the Company and Real Time, Inc. The Separation Agreement contains customary confidentiality provisions and a mutual release of claims between the Company and Mr. Berry.  Mr. Berry will be subject to customary non-solicitation and non-competition covenants for a period of twenty-four months.

 

Appointment of Certain Directors or Officers

 

On May 13, 2017, the Company’s Board of Directors (the “Board”) appointed Warren Sutherland, age 46, as the Chief Financial Officer of the Company, effective immediately upon the departure of Mr. Berry. Mr. Sutherland most recently served as Vice President of Sales Operations, Information Technology and Financial Planning & Analysis at the Company since 2016. Mr. Sutherland has more than 16 years of financial and operational leadership experience with public and private companies in the high-tech and fin-tech industries. He held various financial management positions at the Company from 2000-2015 and then joined Cardlytics, Inc., a fin-tech company, as Vice President of Financial Planning & Analysis for one year before returning to the Company in mid-2016. He began his accounting career as an auditor with Arthur Andersen. He is a CPA and holds a Bachelor of Business Administration in Finance and Masters of Accountancy, both from the University of Georgia.

 

In connection with Mr. Sutherland’s appointment, the Company entered into an employment agreement, dated May 15, 2017, with Mr. Sutherland (the “Employment Agreement”) setting forth the terms of his employment.

 

Mr. Sutherland will receive a base salary at an annualized rate of $210,013 per year, which amount will be reviewed annually. Mr. Sutherland will also be eligible for a bonus under the Company’s annual incentive plan, which currently provides an annual bonus opportunity in a target amount of 50% of his then current base salary with a maximum bonus of 150% of target bonus. The targets and objectives for each year and other terms and conditions of the bonus opportunity are established by the Compensation Committee. In addition, Mr. Sutherland will be eligible to participate in all employee benefit programs of the Company made available to senior executives.

 

In connection with Mr. Sutherland’s employment, the Board will grant to Mr. Sutherland an award of 30,000 shares of restricted stock of the Company. 25% of the shares subject to the award will vest on each of the first, second, third and fourth anniversaries of the grant date, provided that Mr. Sutherland is employed by the Company on such vesting date.

 

 

 

 

The Employment Agreement provides that employment may be terminated by either the Company or Mr. Sutherland at any time. In the event Mr. Sutherland voluntarily resigns or is terminated for “Due Cause” (as defined in the Employment Agreement), Mr. Sutherland will be entitled to payment of salary and bonus accrued and due through the date of termination of his employment as well as the bonus, if any, earned but not paid for the fiscal year ending prior to his termination and any other vested rights and benefits he may have under the employee benefit plans and programs of the Company which shall be determined in accordance with the terms of such plans and programs.

 

The Company may also elect to terminate Mr. Sutherland’s employment in the event of his “Continuing Disability” (as defined in the Employment Agreement). In such event, Mr. Sutherland will be entitled to payment of salary and bonus accrued and due through the date of termination of his employment and any other vested rights and benefits he may have under the employee benefit plans and programs of the Company will be determined in accordance with the terms and provisions of such plans and programs.

 

In the event the Employment Agreement is terminated by:

 

· the Company, other than for Due Cause, death or Continuing Disability; or

 

· Mr. Sutherland on account of his “constructive termination” by the Company without Due Cause (as defined in the Employment Agreement),

 

Mr. Sutherland will be entitled to receive severance payments (“Severance”) consisting of (a) continuation of salary for a period of six (6) months from the date of termination, (b) one-half of the amount, if any, paid as an annual bonus in the year preceding his termination, and (c) continued coverage under the Company’s healthcare plans at active employee rates for the six (6) month period following the date of termination.

 

In the event the Employment Agreement is terminated by:

 

· the Company, other than for Due Cause, death or Continuing Disability, within one year after a “change of control” (as defined in the 2011 Stock Incentive Plan); or

 

· Mr. Sutherland on account of his “constructive termination” by the Company without Due Cause, within three months after a “change of control,”

 

Mr. Sutherland will be entitled to receive severance payments (“CIC Severance”) consisting of (a) continuation of salary for a period of twelve (12) months from the date of termination, (b) the amount, if any, paid as an annual bonus in the year preceding his termination, and (c) continued coverage under the Company’s healthcare plans at active employee rates for the twelve (12) month period following the date of termination.

 

Payment of Severance or CIC Severance, as applicable, is contingent upon Mr. Sutherland executing, and not revoking, a release of claims. Severance payments called for under the Employment Agreement will either comply with terms of Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”) or qualify for an exemption from Section 409A.

 

If Mr. Sutherland’s employment is terminated for any reason, he is prohibited from competing with the Company, soliciting its customers or trying to hire its employees for the period in which he receives Severance Payments, if any, plus one year.

 

The foregoing descriptions of the Separation Agreement and the Employment Agreement (the “Agreements”) are general descriptions and are qualified in their entirety by reference to the Agreements. A copy of the Separation Agreement entered into by Mr. Berry and the Company on May 15, 2017 is attached hereto as Exhibit 10.1 and a copy of the Employment Agreement entered into by Mr. Sutherland and the Company on May 15, 2017 is attached hereto as Exhibit 10.2. The Agreements are incorporated by reference therein.

  

The press release issued by the Company announcing Mr. Sutherland’s employment and Mr. Berry’s departure is attached hereto as Exhibit 99.1 and is incorporated herein by reference in its entirety.

 

 

 

 

Item 9.01. Financial Statements and Exhibits.

 

(d) Exhibits.

 

10.1 Separation Agreement, dated May 15, 2017, between Concurrent Computer Corporation and Emory O. Berry .
   
10.2 Employment Agreement, dated May 15, 2017, between Concurrent Computer Corporation and Warren Sutherland.
   
99.1 Press Release, dated May 15, 2017.

 

 

 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  CONCURRENT COMPUTER CORPORATION

 

Dated:  May 15, 2017 By: /s/ Derek J. Elder
    Derek J. Elder
    President and Chief Executive Officer

 

 

 

 

EXHIBIT INDEX

 

Exhibit Number   Description
     
10.1   Separation Agreement, dated May 15, 2017, between Concurrent Computer Corporation and Emory O. Berry .
     
10.2   Employment Agreement, dated May 15, 2017, between Concurrent Computer Corporation and Warren Sutherland.
     
99.1   Press Release, dated May 15, 2017.

 

 

 

Exhibit 10.1

 

CONFIDENTIAL SEPARATION AGREEMENT AND GENERAL RELEASE

 

This Confidential Separation Agreement and General Release (this “ Agreement ”) is between CONCURRENT COMPUTER CORPORATION, a Delaware corporation (the “ Company ”), and EMORY O. BERRY, a resident of the State of Georgia (“ Employee ”).

 

Employee has been employed by the Company pursuant to an employment agreement dated as of August 1, 2008 between the Company and Employee (the “Employment Agreement”). Employee’s employment with the Company will be terminated on the Separation Date (as defined below). Employee and the Company now desire to specify the terms and conditions of Employee’s separation from employment. Therefore, in consideration of the covenants and agreements set forth in this Agreement, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties to this Agreement covenant and agree as follows:

 

1.             Acknowledgment of Separation . Employee acknowledges that his employment with the Company will end on the close of business on May 15, 2017 (the “ Separation Date ”). From and after the Separation Date, Employee shall not represent himself as being an employee, officer, director, agent or representative of the Company for any purpose. From and after the Separation Date, Employee will not be entitled to any compensation or benefits from the Company, including coverage under any benefit plans or programs sponsored by the Company, except as expressly provided under this Agreement or as required by law.

 

2.             Separation Pay . Subject to Employee’s compliance with the terms and conditions of this Agreement, the Company will provide Employee with the payments and benefits described in clauses (a), (b), (c) and (d) below. Employee understands and agrees that such payments and benefits encompass and are in lieu of any and all other payments and benefits to which he may be entitled from the Company, other than any vested benefits to which Employee is entitled pursuant to any employee benefit plan maintained by the Company.

 

(a)           Separation Payments . The Company will pay Employee the sum of $336,044, less applicable tax withholdings and deductions, such amount representing twelve (12) months of Employee’s base salary as in effect immediately prior to the Separation Date. Such amount will be paid in substantially equal installments on each regularly scheduled pay date for a period of twelve (12) consecutive months (each such payment, a “ Separation Payment ”), commencing on the Company’s next scheduled pay day after the Effective Date (as defined in Section 3(b) below).

 

(b)           Annual Bonus Payment . The Company will pay Employee the sum of $100,813, less applicable withholding taxes and deductions, such amount representing the annual bonus accrued with respect to Employee for fiscal year 2017. Such amount will be paid in a lump sum payment on the Company’s next scheduled pay day after the Effective Date.

 

(c)           Medical Benefits Continuation . Provided that Employee timely elects COBRA continuation coverage pursuant to Section 4980B of the Internal Revenue Code of 1986, as amended (“COBRA”), during the eighteen (18) month period following Employee’s Separation Date (the “Continuation Period”), the Company will provide Employee and his eligible dependents with COBRA continuation coverage. Employee’s cost for such COBRA continuation coverage will equal the premium charged to active employees during such period, and the remainder of the COBRA premium will be paid by the Company.

 

 

 

 

(d)           Vesting of Restricted Stock Awards . The Company will accelerate vesting of a portion of Employee’s unvested restricted stock awards (“Restricted Stock”) as shown on Exhibit 1 hereto, such that a total of 54,686 shares of Restricted Stock shall become fully vested on the day immediately preceding the closing date of the transactions contemplated by the asset purchase agreement between the Company and Real Time, Inc. Employee shall satisfy all taxes resulting from the vesting of such Restricted Stock by authorizing the Company to withhold an amount equal to such taxes from the following sources in the following order: any dividends previously accrued and payable with respect to such vested Restricted Stock as reflected on Exhibit 1 hereto, the Annual Bonus payable pursuant to Section 2(b), and/or the Separation Payments payable pursuant to Section 2(a).

 

3.             General Release .

 

(a)           General Release . In consideration of the payments provided under this Agreement, which are in addition to anything of value to which Employee is otherwise entitled, Employee, on behalf of himself and anyone claiming through him, hereby fully and completely releases the Company, its affiliates and related entities, and each of their respective current and former employees, officers, directors, shareholders, members, managers, agents, employee benefit plans and fiduciaries, insurers, trustees, attorneys, joint venture partners, transferees, successors and assigns (each a “ Released Party ” and collectively, the “ Released Parties ”), collectively, separately, and severally, of and from any and all claims, demands, damages, causes of action, debts, liabilities, controversies, judgments, and suits of every kind and nature whatsoever, foreseen, unforeseen, known or unknown, that Employee has had, now has, or may have against the Released Parties (or any of them) from the beginning of time through the date Employee signs this Agreement, with the exception of any claims that cannot legally be waived by private agreement and any claims that may arise after the date Employee signs this Agreement (the claims released under this Agreement are collectively referred to as the “ Released Claims ”). Subject to the limitations in the immediately preceding sentence, the Released Claims include all claims arising under any federal, state or local statute or ordinance, constitutional provision, public policy or common law, including all claims under Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act of 1967 (the “ ADEA ”), the Equal Pay Act, the Civil Rights Act of 1866, the Civil Rights Act of 1871, the Employee Retirement Income Security Act (with respect to unvested benefits), COBRA, the Americans with Disabilities Act, 31 U.S.C. § 3730(h), the Georgia Equal Pay Act, the Georgia Prohibition of Age Discrimination in Employment Act, and the Georgia Equal Employment for People with Disabilities Code, all as amended; all claims for breach of any express or implied contract; all claims for breach of any covenant of good faith and fair dealing; all claims for promissory estoppel or detrimental reliance; all claims for wages, bonuses, incentive compensation, equity, fringe benefits and severance allowances or entitlements; all tort claims (including claims for fraud, slander, libel, defamation, disparagement, and negligent or intentional infliction of emotional distress); all claims for compensatory or punitive damages, or any other claim for damages or injury of any kind whatsoever; and all claims for monetary recovery, including, without limitation, attorneys’ fees, experts’ fees, medical fees or expenses, costs and disbursements. Employee hereby waives any right to seek or recover any individual relief in connection with any of the Released Claims through any charge, complaint, lawsuit, or other proceeding, whether commenced or maintained by Employee or by any other person or entity, with the exception of any right to receive an award for information provided to the U.S. Securities and Exchange Commission.

 

 

 

 

(b)           Release of ADEA Claims . The Released Claims include any claims Employee may have against any of the Released Parties under the ADEA. Employee understands that he has 21 days from the date this Agreement was initially delivered to him to decide whether to sign it (the “ Consideration Period ”), although Employee may sign this Agreement sooner if he chooses. If Employee decides to sign this Agreement before the expiration of the Consideration Period, Employee represents that his decision is knowing and voluntary. Employee agrees that any revisions made to this Agreement after it was initially delivered to him, whether material or immaterial, do not restart the Consideration Period. Employee may revoke this Agreement within seven days after signing it. This Agreement will not become effective or enforceable until the eighth day after Employee has signed this Agreement without having revoked it (the “ Effective Date ”). In the event Employee chooses to revoke this Agreement, Employee must notify the Company in writing in accordance with Section 14 of this Agreement. Any such notice of revocation must be delivered to the Company in a manner calculated to ensure receipt prior to 11:59 p.m. Eastern Time on the day prior to the Effective Date. If Employee does not sign this Agreement prior to the expiration of the Consideration Period, or if Employee revokes this Agreement, he will not be entitled to any of the benefits set forth in Section 2 of this Agreement. The Company advises Employee to consult with an attorney prior to signing this Agreement.

 

4.             Covenant Not to Sue . Except for an action to challenge the validity of Employee’s release of claims under the ADEA, or as otherwise provided in Section 12 below, Employee promises that he will not file, instigate or participate in any proceeding against any of the Released Parties relating to any of the Released Claims. In the event Employee breaches the covenant contained in this Section 4 , Employee agrees to indemnify the Released Parties for all damages and expenses, including attorneys’ fees, incurred by any Released Parties in defending, participating in or investigating any matter or proceeding covered by this Section 4 .

 

5.             Representations . Employee represents and warrants that (a) Employee has been fully compensated for all hours worked with the receipt of Employee’s final paycheck; (b) Employee has returned all Company property in his possession or control and has permanently deleted any and all documents and information containing trade secrets and/or confidential information of the Company stored on any electronic device, web-based email or other storage location not owned by the Company but within Employee’s possession or control; (c) Employee is not aware of any activity by the Company or any other Released Party that Employee believes to be unlawful or potentially unlawful; (d) Employee has not filed any complaints, claims or actions against the Company or any other Released Party; and (e) Employee has not assigned, transferred, conveyed or otherwise disposed of any Released Claims.

 

 

 

 

6.             Survival of Obligations.

 

(a)          Each of the covenants set forth in Exhibit B of the Employment Agreement shall continue in full force and effect in accordance with their respective terms, and such covenants are hereby incorporated herein by reference and made a part of this Agreement.

 

(b)          Notwithstanding anything herein to the contrary, the Company hereby waives and agrees not to enforce the non-solicitation provisions of that certain confidentiality agreement, dated as of December 13, 2016, by and between the Company and Battery Management Corp. with respect to a solicitation of Employee by Battery Management Corp. or any of its affiliates; provided , that in no event shall this Section 6(b) be deemed to limit or alter any covenant not to compete with the Company as set forth in Exhibit B of the Employment Agreement.  Battery Management Corp. and its affiliates shall be express third party beneficiaries of this Section 6(b) and shall be entitled to enforce the waiver and agreement in this Section 6(b) against the Company solely in connection with any solicitation of Employee by Battery Management Corp. or its affiliates.

 

7.             Non-disparagement . Except as otherwise provided in Section 12 below, Employee agrees not to make, publish or communicate to any person or entity or in any public forum (including social media) at any time any defamatory or disparaging remarks, comments, or statements concerning the Company or its officers, directors, employees, clients or services.

 

8.             Confidentiality . Except as otherwise provided in Section 12 below or as necessary to comply with Employee’s obligations under Section 10 below, Employee shall not disclose any of the terms of this Agreement to any individual or entity except Employee’s attorneys and tax advisors. Such individuals will be considered Employee’s agents and will also be bound by this Agreement to the extent permitted by law.

 

9.             Injunctive Relief . Employee acknowledges that any breach of his obligations under Sections 6 and 7 of this Agreement would cause irreparable harm to the Company, the exact amount of which would be difficult to determine, and that the remedies at law for any such breach would be inadequate. Accordingly, Employee agrees that, in addition to any other remedy that may be available to the Company, the Company shall be entitled to specific performance and injunctive and other equitable relief, without posting bond or other security, to enforce or prevent any violation of such provisions. In any action for injunctive relief, the prevailing party will be entitled to collect reasonable attorneys’ fees and other reasonable costs from the non-prevailing party.

 

10.           Notification to Subsequent Employer . Employee agrees to notify any subsequent employer of the existence and terms of the provisions set forth in Sections 6 through 9 of this Agreement. In addition, Employee authorizes the Company to provide a copy of such provisions to third parties, including but not limited to Employee’s subsequent, anticipated or possible future employers.

 

11.            Cooperation . Employee agrees to cooperate with the Company and be reasonably available to confer with the Company with respect to continuing and/or future matters related to the period during which Employee was employed by the Company (including, without limitation, promptly responding to requests for information and appearing at the Company’s request to give truthful testimony without requiring service of a subpoena or other legal process). The Company agrees to reimburse Employee for all reasonable expenses incurred by Employee in connection with providing cooperation pursuant to this Paragraph 11 and, to the extent not prohibited by law, compensate Employee at his reasonable hourly rate for any consulting services rendered.

 

 

 

 

12.          Protected Rights . Nothing contained in this Agreement limits Employee’s ability to file a charge or complaint with the Equal Employment Opportunity Commission, the National Labor Relations Board, the Occupational Safety and Health Administration, the Securities and Exchange Commission or any other federal, state or local governmental agency or commission (collectively, “ Government Agencies ”), or prevents Employee from providing truthful testimony in response to a lawfully issued subpoena or court order.  Further, this Agreement does not limit Employee’s ability to communicate with any Government Agencies or otherwise participate in any investigation or proceeding that may be conducted by any Government Agency, including providing documents or other information, without notice to the Company.

 

13.          Defend Trade Secrets Act . Employee is hereby notified that under the Defend Trade Secrets Act: (a) no individual will be held criminally or civilly liable under federal or state trade secret law for disclosure of a trade secret (as defined in the Economic Espionage Act) that is: (i) made in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney, and made solely for the purpose of reporting or investigating a suspected violation of law; or, (ii) made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal so that it is not made public; and (b) an individual who pursues a lawsuit for retaliation by an employer for reporting a suspected violation of the law may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if the individual files any document containing the trade secret under seal, and does not disclose the trade secret, except as permitted by court order.

 

14.          Notices . All notices, requests, demands, claims, consents and other communications which are required, permitted or otherwise delivered hereunder shall in every case be in writing and shall be deemed properly served if: (a) delivered personally, (b) sent by registered or certified mail, in all such cases with first class postage prepaid, return receipt requested, or (c) delivered by a recognized overnight courier service to the parties at the addresses set forth below:

 

To the Company:   Concurrent Computer Corporation
    Attn: Derek Elder
    4375 RiverGreen Parkway, Suite 100
    Duluth, Georgia 30096
     
To Employee:   Emory O. Berry
    4220 Berkeley View Drive
    Berkeley Lake, Georgia 30096

 

or to such other address as shall be furnished in writing by either party to the other party; provided, that such notice or change in address shall be effective only when actually received by the other party. The date of service of any such notices or other communications shall be: (i) the date such notice is personally delivered, (ii) three business days after the date of mailing if sent by certified or registered mail, or (iii) one business day after the date of delivery to the overnight courier if sent by overnight courier.

 

 

 

 

15.            Arbitration . Any disputes or claims of any kind or nature, including as to arbitrability under this Agreement, between Employee and the Company arising out of, related to, or in connection with any aspect of Employee’s employment with the Company or its termination, including all claims arising out of this Agreement and claims for alleged discrimination, harassment, or retaliation in violation of Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, 42 U.S.C. § 1981, the Age Discrimination in Employment Act of 1967, the Americans with Disabilities Act of 1990, the Family and Medical Leave Act of 1993, the Fair Labor Standards Act, the Employee Retirement Income Security Act of 1974, or any other federal, state, or local law, shall be settled by final and binding arbitration in Fulton County, Georgia. Either party may file a written demand for arbitration with the American Arbitration Association pursuant to its National Rules for the Resolution of Employment Disputes. The arbitration shall be conducted by a single neutral arbitrator who is a member of the Bar of the State of Georgia, has been actively engaged in the practice of law for at least fifteen (15) years, and has substantial experience in connection with business transactions and interpretation of contracts. In considering the relevancy, materiality, discoverability, and admissibility of evidence, the arbitrator shall take into account, among other things, applicable principles of legal privilege, including the attorney-client privilege, the work product doctrine, and appropriate protection of the Company’s confidential information. Upon the request of either party, the arbitrator’s award shall be written and include findings of fact and conclusions of law. Judgment on the award rendered by the arbitrator may be entered by any court having jurisdiction. Any arbitration of any claim by Employee may not be joined or consolidated with any other arbitration(s) by or against the Company, including through class or collective arbitration. The prevailing party in any such arbitration, or in any action to enforce this Section or any arbitration award hereunder, shall be entitled to recover that party’s attendant attorneys’ fees and related expenses from the other party to the maximum extent permitted by law. The Company shall be responsible for payment of all mediation and arbitration filing and administrative fees, and all fees and expenses of the mediator or arbitrators, irrespective of the outcome, as to any federal statutory claims by Employee or as may otherwise be required by law for this Agreement to be enforceable. Notwithstanding any other provision of this Agreement, the Company may seek temporary, preliminary, or permanent injunctive relief against the Employee at any time without resorting to arbitration. The parties agree that this Agreement involves interstate commerce and that this arbitration provision is therefore subject to and governed by the Federal Arbitration Act.

 

16.            General Provisions .

 

(a)           No Admission of Liability . The Company and its agents expressly deny that they have any liability to Employee, and this Agreement is not to be construed as an admission of any such liability. If this Agreement does not become effective, it shall be deemed negotiation for settlement purposes only and will not be admissible or usable for any purpose.

 

 

 

 

(b)           Entire Agreement; Modification . This Agreement sets forth the entire agreement between the parties regarding the subject matter of this Agreement, and supersedes and replaces any and all other agreements, written or oral, express or implied, between the parties concerning the same subject matter, with the exception of any prior restrictive covenants or invention assignment agreements between the parties, which remain in effect. No provision of this Agreement may be amended, changed, altered, or modified except in writing signed by Employee and a duly authorized representative of the Company.

 

(c)           Waiver . No term or condition of this Agreement shall be deemed to have been waived, nor shall there be an estoppel against the enforcement of any provision of this Agreement, except by written instrument of the party charged with such waiver or estoppel.

 

(d)           Severability . Should any provision of this Agreement be declared or determined by any court of competent jurisdiction to be unenforceable or invalid for any reason, the validity of the remaining parts, terms or provisions of this Agreement shall not be affected thereby and the invalid or unenforceable part, term or provision shall be deemed not to be a part of this Agreement. In the event a court of competent jurisdiction determines that any restrictive covenant set forth in this Agreement is excessive in duration or scope or is otherwise unreasonable or unenforceable as drafted, it is the intent of the parties that such restriction be modified to render it enforceable to the maximum extent permitted by law.

 

(e)           Successors and Assigns . Employee may not assign this Agreement or any part hereof, and any purported assignment by Employee shall be null and void. This Agreement shall be assignable by the Company and inure to the benefit of the Company and its successors and assigns.

 

(f)           Governing Law; Venue . This Agreement shall be deemed to be made in, and in all respects shall be interpreted, construed, and governed by and in accordance with the laws of the State of Georgia, irrespective of its choice of law rules. While it is the intention of the parties that Section 15 of this Agreement be fully enforced, to the extent any judicial action is required in aid of Section 15 of this Agreement or otherwise, any such action arising under or related to this Agreement or Employee’s employment with the Company shall be filed exclusively in the state or federal courts with jurisdiction over Fulton County, Georgia, and the parties hereby consent to the jurisdiction and venue of such courts.

 

(g)           Construction . In the event that an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties, and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any of the provisions of this Agreement. As used herein, the phrase “including” means “including, but not limited to” in each instance. “Or” is used in the inclusive sense of “and/or”. The headings and captions used in this Agreement are for convenience of reference only, and shall in no way define, limit, expand, or otherwise affect the meaning or construction of any provision of this Agreement.

 

(h)           Counterparts . This Agreement may be executed in two or more counterparts, each of which will be deemed an original, and all of which together will constitute one document. This Agreement may be signed and delivered by fax transmission or email, which shall be effective as an original.

 

 

 

 

(i)           Section 409A . Payments pursuant to this Agreement are intended to be exempt from Section 409A of the Internal Revenue Code and accompanying regulations and other binding guidance promulgated thereunder (“ Section 409A ”) pursuant to either the involuntary separation pay exception or the short-term deferral exception, and the provisions of this Agreement will be administered, interpreted and construed accordingly. For purposes of Section 409A, each installment payment provided under this Agreement shall be treated as a separate payment. Notwithstanding the foregoing, the Company makes no representations that the payments and benefits provided under this Agreement comply with or are exempt from Section 409A and in no event shall the Company be liable for all or any portion of any taxes, penalties, interest or other expenses that may be incurred by Employee on account of non-compliance with Section 409A.

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date(s) indicated below to be effective on the Effective Date.

 

  CONCURRENT COMPUTER CORPORATION
     
  By: /s/ Derek J. Elder
    Derek J. Elder
    President and Chief Executive Officer

 

  May 15, 2017
  Date

 

  /s/ Emory O. Berry
  EMORY O. BERRY

 

  May 15, 2017
  Date

 

 

 

 

EXHIBIT 1

 

Grant
Date
  Vesting
Term
  Original
Grant
    Total
Vested
Shares
    Total
Unvested
Shares
    Pro
Rata
Factor
    Shares
Accelerated
    Dividends
Accrued
    Dividends
Accelerated
 
9/4/13   4-Year Pro-Rata     5,487       4,116       1,371       0.932       1,277     $ 2,467.80     $ 2,299.35  
10/30/14   3-Year Cliff     27,000       0       27,000       0.911       24,589     $ 32,400.00     $ 29,506.80  
8/17/15   3-Year Cliff     36,000       0       36,000       0.587       21,120     $ 30,240.00     $ 17,741.17  
9/1/16   3-Year Cliff     31,000       0       31,000       0.248       7,700     $ 11,160.00     $ 2,772.16  
                                                             
          99,487       4,116       95,371               54,686     $ 76,267.80     $ 52,319.48  

 

 

 

Exhibit 10.2

 

EMPLOYMENT AGREEMENT

 

EMPLOYMENT AGREEMENT, made and entered into as of the 15th day of May, 2017 by and between CONCURRENT COMPUTER CORPORATION, a Delaware corporation (“ Concurrent ” or the “ Company ”), and WARREN SUTHERLAND (the “ Employee ”).

 

WITNESSETH :

 

WHEREAS, the Company desires to employ the Employee and the Employee desires to accept such employment with the Company;

 

NOW, THEREFORE, in consideration of the premises and mutual covenants contained herein and for other good and valuable consideration, the parties agree as follows:

 

1. Employment

 

The Company hereby employs the Employee and the Employee hereby accepts employment with the Company for the term set forth in Section 2 below, in the position and with the duties and responsibilities set forth in Section 2 below, and upon other terms and conditions hereinafter stated.

 

2. Position; Duties; Responsibilities

 

2.1           The term of employment hereunder shall commence on the date hereof and continue until such employment ceases as provided in Section 4.1, 4.2, 4.3, 4.4, 4.5, 4.6 or 4.7 (such period, the “Term”). It is intended that at all times during the Term of employment hereunder, the Employee shall serve as the Chief Financial Officer of the Company. The Employee agrees to perform such senior executive officer and managerial services customary to such position as are necessary to the operations of the Company and as may be assigned to him from time to time by the Company’s Chief Executive Officer.

 

2.2           Throughout the Term of employment hereunder, the Employee shall devote his full time and undivided attention to the business and affairs of the Company, as appropriate to his responsibilities and duties hereunder. Nothing in this Agreement shall preclude the Employee from devoting reasonable periods required for serving as a director or member of any advisory committee of not more than two (at any time) “for profit” organizations involving no conflict of interest with the interests of the Company (subject to approval by the Company’s Board of Directors (“Board of Directors”), which approval shall not be unreasonably withheld), or from engaging in charitable and community activities, or from managing his personal investments, provided such activities do not interfere with the performance of his duties and responsibilities under this Agreement.

 

 

 

 

3. Compensation

 

3.1 Salary

 

For services rendered by the Employee during the Term of employment hereunder, the Employee shall be paid a salary, payable in accordance with the then existing applicable payroll policy of the Company, at an annualized rate of $210,013, less applicable deductions and withholdings, such salary to be reviewed annually in accordance with the Company’s regular salary review schedule.

 

3.2 Annual Bonus Opportunity

 

During the Term of employment hereunder, the Employee will be eligible for a bonus opportunity under the Company’s Annual Incentive Plan (“AIP”), which currently provides an annual bonus opportunity in a target amount of fifty percent (50%) of Employee’s then current base salary (pro-rated based on the Employee’s start date, as applicable) with a maximum bonus of one hundred fifty percent (150%) of the target bonus. The targets and objectives for each year and other terms and conditions of the bonus opportunity shall be established each year by the Compensation Committee of the Board of Directors with the input of the Chief Executive Officer.

 

3.3 Employee Benefit Plans

 

During the Term of employment hereunder, the Employee will be eligible to participate in all employee benefit programs of the Company made available to senior executives, in accordance with the provisions thereof. Additionally, the Employee shall be entitled to vacation time at the rate of four (4) weeks per calendar year or such greater amount as may be provided by Company policies in effect from time to time.

 

3.4 Restricted Stock; Long Term Incentive Plan

 

The Compensation Committee of the Board of Directors will grant to the Employee an award of 30,000 shares of Restricted Stock as soon as practicable after the effective date of this Agreement. The terms of the award shall provide for the lapse of restrictions as follows, provided that the Employee is employed with the Company on the applicable date: restrictions on 7,500 shares shall lapse on the first anniversary of the grant date; restrictions on 7,500 shares shall lapse on the second anniversary of the grant date; restrictions on 7,500 shares shall lapse on the third anniversary of the grant date; and restrictions on 7,500 shares shall lapse on the fourth anniversary of the grant date. The Restricted Stock award shall be subject to and governed by the terms and conditions of the Concurrent Computer Corporation 2011 Stock Incentive Plan (“Incentive Plan”) and the award document. Notwithstanding the foregoing, such Restricted Stock shall become 100% vested in the event the Employee’s employment is terminated because of death or Continuing Disability as provided in Section 4.2.

 

During the Term of employment hereunder, the Employee will be eligible to participate in long term incentive programs of the Company now or hereafter made available to senior executives, in accordance with the provisions thereof as in effect from time to time, and as deemed appropriate by the Compensation Committee to be applicable to this position.

 

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3.5 Business Expense Reimbursements

 

During the Term of employment hereunder, the Employee will be entitled to receive reimbursement by the Company for all reasonable out-of-pocket expenses incurred by him (in accordance with the policies and procedures established by the Company for its senior executives), in connection with his performing services hereunder. Reimbursements shall be made in accordance with Employer’s normal expense reimbursement policies and procedures for its senior executives (including timing), and such reimbursement will be made no later than the last day of the Employee’s taxable year following the taxable year in which the expense was incurred. The expenses paid by Employer during any taxable year of the Employee will not affect the expenses paid by Employer in another taxable year. This right to reimbursement is not subject to liquidation or exchange for another benefit.

 

4. Consequences of Termination of Employment

 

4.1 Death

 

In the event of the death of the Employee during the Term of employment hereunder, the estate or other legal representatives of the Employee shall be entitled to salary and bonus accrued and due through the period ending on the date of his death and any other vested rights and benefits he may have under the employee benefit plans and programs of the Company will be determined in accordance with the terms and provisions of such plans and programs.

 

4.2 Continuing Disability

 

Notwithstanding anything in this Agreement to the contrary, the Company is hereby given the option to terminate the Employee’s employment in the event of the Employee’s Continuing Disability. The Company can exercise this option by giving notice to the Employee of the Company’s intention to terminate his employment due to Continuing Disability not earlier than 15 days from the Employee’s receipt of such notice.

 

In the event of the termination of the Employee’s employment due to Continuing Disability, the Employee shall be entitled to salary and bonus accrued and due through the period ending on the date of his termination and any other vested rights and benefits he may have under the employee benefit plans and programs of the Company will be determined in accordance with the terms and provisions of such plans and programs.

 

For purposes hereof, “ Continuing Disability ” shall mean the inability to perform the essential functions connected with the Employee’s duties hereunder, with or without reasonable accommodation, which inability shall have existed or shall reasonably be expected to exist for a period of 180 days, even though not consecutive, in any 24 month period. In the event the Employee does not agree with the Company that his inability to perform the essential functions connected with the Employee’s duties may reasonably be expected to exist for such period, the opinion of a qualified medical doctor selected by the Employee and reasonably satisfactory to the Company shall be determinative.

 

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4.3 Termination by the Company for Due Cause

 

Nothing herein shall prevent the Company from terminating the employment of the Employee for Due Cause. If the Employee is terminated by the Company for Due Cause, he shall be entitled to salary and bonus accrued and due through the period ending on the date of his termination, the bonus, if any, earned but not paid for the fiscal year ending prior to his termination and any other vested rights and benefits he may have under the employee benefit plans and programs of the Company which shall be determined in accordance with the terms of such plans and programs. The term “ Due Cause ”, as used herein, shall mean that (a) the Employee has committed a willful serious act, such as (but not limited to) embezzlement, against the Company intended to enrich himself at the expense of the Company or has been convicted of a felony or misdemeanor involving moral turpitude; (b) the Employee has willfully or grossly neglected his duties hereunder or intentionally failed to observe specific lawful directives or policies of the Board of Directors, which directives or policies were consistent with his positions, duties and responsibilities hereunder, and which failure had, or continuing failure will have, a material adverse effect on the Company; (c) the Employee’s undertaking to provide any chief financial officer certification required under the Sarbanes-Oxley Act of 2002 (“ Sarbanes-Oxley Act ”) without taking reasonable and appropriate steps as outlined by the Company’s audit committee to determine whether the certification was accurate; (d) the Employee’s failure to fulfill any of his duties under, or violation of any provision of, the Sarbanes-Oxley Act, including, but not limited to, failure to establish and administer effectively systems and controls as outlined by the Company’s audit committee necessary for compliance with the Sarbanes-Oxley Act; or (e) the Employee has committed a material violation of the Company’s policies or procedures, or a material breach of this Agreement. Prior to any such termination, the Employee shall be given written notice by the Board of Directors that the Company intends to terminate his employment for Due Cause under this Section 4.3, which written notice shall specify the particular acts or omissions on the basis of which the Company intends to so terminate the Employee’s employment, and the Employee (with his counsel, if he so chooses) shall be given the opportunity, within 15 days of his receipt of such notice, to have a meeting with the Board of Directors to discuss such acts or omissions and given reasonable time to remedy the situation, if it is deemed by the Board of Directors, in their good faith business judgment, to be remediable. In the event of such termination, the Employee shall be promptly furnished written specification of the basis therefor in reasonable detail.

 

4.4 Termination by the Company other than for Due Cause

 

The foregoing notwithstanding, the Company may terminate the Employee’s employment for whatever reason it deems appropriate; provided, however, that in the event such termination is not based on death or Continuing Disability as provided in Sections 4.1 or 4.2, above, or on Due Cause as provided in Section 4.3 above, the Employee will be entitled to receive Severance Compensation (as defined below); provided that within thirty (30) days following the date of the Employee’s termination of employment, the Employee executes a release in a form acceptable to the Company and such release has become irrevocable.

 

For purposes of the foregoing, “Severance Compensation” shall consist of (a) salary continuation payments for a period of 6 months from the date of such termination (the “ Salary Continuation Period ”), at the salary in effect, pursuant to Section 3.1 above, immediately prior to such termination, (b) one-half of the amount, if any, paid as an annual bonus in the year preceding the Employee’s termination of employment, and (c) COBRA continuation coverage under the Company’s hospitalization and medical plan (the “ Health Plan ”) for Employee and his eligible dependents who were covered under the Health Plan at the time of his termination as required by Section 4980B of the Internal Revenue Code of 1986, as amended (the “ Code ”), but during the Salary Continuation Period, Employee shall be eligible to continue such coverage at the same premium charged to active employees during such period. The payments pursuant to Section 4.4(a) and (b) above shall be made in substantially equal installments on each regularly scheduled pay date (each a “ Pay Date ”), beginning with the first Pay Date following the thirtieth (30th) day after the date of the Employee’s “separation from service” (“ Separation from Service”) ( within the meaning of Section 409A of the Code and the regulations, rulings and other guidance issued thereunder (collectively, “ Section 409A ”)), but with the first payment being a lump sum payment covering all payment periods from the date of the Employee’s Separation from Service through the date of such first payment.

 

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Notwithstanding the foregoing, if at the time of the Employee’s Separation from Service, the Employee is a “specified employee” within the meaning of Section 409A, then, to the extent any payment that the Employee becomes entitled to under this Agreement on account of Separation from Service would be considered deferred compensation subject to Section 409A (after excluding to the maximum extent possible any payments that may be excluded pursuant to Section 409A either as separation pay due to an involuntary separation from service or as a short-term deferral), such payment shall not be payable until the date that is the earlier of (i) six (6) months and one (1) day after the Employee’s Separation from Service, or (ii) the Employee’s death (the “ Delay Period ”). Upon the first business day following the expiration of the Delay Period, all payments deferred pursuant to this subsection shall be paid in a single lump sum to the Employee (without interest), and any remaining payments due under this Agreement shall be paid as otherwise provided herein.

 

Except as specifically set forth in this Section 4.4, the Employee shall not be entitled to any other compensation or benefits following a termination of employment by the Company as provided in this Section 4.4, other than with respect to any vested benefits to which the Employee is entitled pursuant to any employee benefit plan maintained by the Company.

 

4.5 Termination Following Change of Control

 

If there is a “change of control” (as defined in the Concurrent Computer Corporation 2011 Stock Incentive Plan), and within one year after such “change of control” the Employee’s employment is terminated by the Company (other than for Due Cause, death or Continuing Disability), or within three months after a “change of control”, the Employee has a constructive termination of employment without Due Cause pursuant to Section 4.6 below, subject to executing a release in a form acceptable to the Company and such release becoming irrevocable, the Employee will be entitled to receive (a) salary continuation payments for a period of 12 months from the date of such termination, at the salary in effect, pursuant to Section 3.1 above, immediately prior to such termination, (b) the amount, if any, paid as an annual bonus in the year preceding the Employee’s termination of employment, and (c) COBRA continuation coverage under the Company’s Health Plan for Employee and his eligible dependents who were covered under the Health Plan at the time of his termination, but during the 12 month period following Employee’s termination, Employee shall be eligible to continue such coverage at the same premium charged to active employees during such period. The salary continuation payments pursuant to Section 4.5(a) and (b) above shall be made in substantially equal installments on each regularly scheduled Pay Date, beginning with the first Pay Date following the thirtieth (30th) day after the date of the Employee’s Separation from Service, but with the first payment being a lump sum payment covering all payment periods from the date of the Employee’s Separation from Service through the date of such first payment. To the extent applicable, such payments shall be subject to the payment restrictions set forth in the third paragraph of Section 4.4.

 

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4.6           Constructive Termination of Employment by the Company without Due Cause

 

Anything herein to the contrary notwithstanding, if the Company:

 

(i)          demotes or otherwise elects or appoints the Employee to a lesser office than set forth in Section 2.1, or

 

(ii)         causes a material change in the nature or scope of the authorities, duties or responsibilities attached to the Employee’s position as described in Section 2.1, or

 

(iii)        materially decreases the Employee’s salary or annual bonus opportunity below the most recent levels provided for by the terms of Sections 3.1 and 3.2, or

 

(iv)        commits any other material breach of this Agreement,

 

then such action (or inaction) by the Company, unless consented to in writing by the Employee, shall constitute a constructive termination of the Employee’s employment. If, within thirty (30) days of learning of the action (or inaction) described herein as a basis for a constructive termination of employment, the Employee (unless he has given written consent thereto) notifies the Company in writing that he wishes to effect a constructive termination of his employment pursuant to this Section 4.6, and such action (or inaction) is not reversed or otherwise remedied by the Company within 30 days following receipt by the Company of such written notice, then effective at the end of such second 30 day period, the employment of the Employee hereunder shall be deemed to have terminated by the Company other than for Due Cause pursuant to Section 4.4 above, and the Employee shall (subject to the terms and conditions set forth in such section, including executing a release in a form acceptable to the Company, and such release becoming irrevocable) be entitled to Severance Compensation in accordance with Section 4.4.

 

4.7 Voluntary Termination by the Employee

 

In the event the Employee terminates his employment of his own volition (other than as provided in Section 4.6 above), such termination shall constitute a voluntary termination and in such event the Employee shall be limited to the same rights and benefits as provided in connection with termination for Due Cause under the second sentence of Section 4.3 above. For the purposes hereof, a decision by the Employee to voluntarily retire shall constitute a voluntary termination.

 

4.8 Other Resignations

 

In the event the Employee’s employment with the Company is terminated (either by the Company or by the Employee), the Employee acknowledges and agrees that he will resign from any and all other positions that the Employee then holds as an employee, officer or director of the Company and its subsidiaries and affiliates.

 

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5. Protective Agreement

 

Concurrently with entering into this Agreement, the Employee will enter into a Protective Agreement in favor of the Company substantially in the form attached as Exhibit A hereto (the “ Protective Agreement ”).

 

6. Successors and Assigns

 

6.1 Assignment by the Company

 

This Agreement shall be binding upon and inure to the benefit of the Company or any corporation or other entity to which the Company may transfer all or substantially all its assets and business and to which the Company may assign this Agreement, in which case “Company” as used herein shall mean such corporation or other entity.

 

6.2 Assignment by the Employee

 

The Employee may not assign this Agreement or any part thereof without the prior written consent of the Company, which consent may be withheld by the Company for any reason it deems appropriate.

 

7. Arbitration

 

Except as provided below, any disputes or claims of any kind or nature, including as to arbitrability under this Agreement, between the Employee and the Company arising out of, related to, or in connection with any aspect of the Employee’s employment with the Company or its termination, including all claims arising out of this Agreement and claims for alleged discrimination, harassment, or retaliation in violation of Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, 42 U.S.C. § 1981, the Age Discrimination in Employment Act of 1967, the Americans with Disabilities Act of 1990, the Family and Medical Leave Act of 1993, the Fair Labor Standards Act, the Employee Retirement Income Security Act of 1974, or any other federal, state, or local law, shall be settled by final and binding arbitration in Fulton County, Georgia. Either party may file a written demand for arbitration with the American Arbitration Association pursuant to its National Rules for the Resolution of Employment Disputes. The arbitration shall be conducted by a single neutral arbitrator who is a member of the Bar of the State of Georgia, has been actively engaged in the practice of law for at least fifteen (15) years, and has substantial experience in connection with business transactions and interpretation of contracts. In considering the relevancy, materiality, discoverability, and admissibility of evidence, the arbitrator shall take into account, among other things, applicable principles of legal privilege, including the attorney-client privilege, the work product doctrine, and appropriate protection of the Company’s Trade Secrets and Confidential Information. Upon the request of either party, the arbitrator’s award shall be written and include findings of fact and conclusions of law. Judgment on the award rendered by the arbitrator may be entered by any court having jurisdiction. Any arbitration of any claim by the Employee may not be joined or consolidated with any other arbitration(s) by or against the Company, including through class or collective arbitration. The prevailing party in any such arbitration, or in any action to enforce this Section or any arbitration award hereunder, shall be entitled to recover that party’s attendant attorneys’ fees and related expenses from the other party to the maximum extent permitted by law. The Company shall be responsible for payment of all mediation and arbitration filing and administrative fees, and all fees and expenses of the mediator or arbitrators, irrespective of the outcome, as to any federal statutory claims by the Employee or as may otherwise be required by law for this Agreement to be enforceable. Notwithstanding any other provision of this Agreement, the Company may seek temporary, preliminary, or permanent injunctive relief against the Employee at any time without resorting to arbitration. The parties agree that this Agreement involves interstate commerce and that this arbitration provision is therefore subject to and governed by the Federal Arbitration Act. The parties confirm their agreement by initialing below:

 

________ ________
Company Employee

 

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8. Governing Law

 

This Agreement shall be deemed a contract made under, and for all purposes shall be construed in accordance with, the laws of the State of Georgia (without reference to the principles of conflicts of law).

 

9. Entire Agreement

 

This Agreement, including the Protective Agreement, contains all the understandings and representations between the parties hereto pertaining to the subject matter hereof and supersedes all undertakings and agreements, whether oral or in writing, if any there be, previously entered into by them with respect thereto.

 

10. Amendment or Modification; Waiver

 

No provision in this Agreement may be amended or waived unless such amendment or waiver is agreed to in writing, signed by the Employee and an officer of the Company thereunto duly authorized. Except as otherwise specifically provided in this Agreement, no waiver by any party hereto of any breach by another party hereto of any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of a similar or dissimilar provision or condition at the same or any prior or subsequent time.

 

11. Notices

 

Any notice to be given hereunder shall be in writing and delivered personally or sent by certified mail, postage prepaid, return receipt requested, addressed to the party concerned at the address indicated below or to such other address as such party may subsequently give notice of hereunder in writing:

 

COMPANY:   Concurrent Computer Corporation
    4375 River Green Parkway
    Suite 100
    Duluth, GA 30096
    Attn: Jodi Patterson

 

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With a copy to:   King & Spalding LLP
    1180 Peachtree Street
    Atlanta, GA 30309
    Attn: Keith Townsend

 

EMPLOYEE:   At the most recent address for the Employee in the Company’s records.

 

12. Severability

 

In the event that any provision or portion of this Agreement shall be determined to be invalid or unenforceable for any reason, the remaining provisions or portions of this Agreement shall be unaffected thereby and shall remain in full force and effect to the fullest extent permitted by law.

 

13. Withholding

 

Anything to the contrary notwithstanding, all payments required to be made by the Company hereunder to the Employee or his estate or beneficiaries, shall be subject to withholding of such amounts relating to taxes as the Company may reasonably determine it should withhold pursuant to any applicable law or regulation. In lieu of withholding such amounts, in whole or in part, the Company may, in its sole discretion, accept other provision for payment of taxes as required by law, provided it is satisfied that all requirements of law affecting its responsibilities to withhold such taxes have been satisfied.

 

14. Survivorship

 

The respective rights and obligations of the parties hereunder shall survive any termination of this Agreement to the extent necessary to the intended preservation of such rights and obligations.

 

15. References

 

References in this Agreement to the Employee shall be deemed, where appropriate, to refer to his legal representatives.

 

16. Titles

 

Titles to the sections in this Agreement are intended solely for convenience and no provision of this Agreement is to be construed by reference to the title of any section.

 

17. Counterparts

 

This Agreement may be executed in several counterparts, each of which shall be deemed to be an original but all of which together shall constitute one and the same instrument.

 

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18. Section 409A

 

Payments pursuant to this Agreement are intended to comply with or be exempt from Section 409A and accompanying regulations and other binding guidance promulgated thereunder, and the provisions of this Agreement will be administered, interpreted and construed accordingly. Any payments under this Agreement that may be excluded from Section 409A either as separation pay due to an involuntary separation from service or as a short-term deferral shall be excluded from Section 409A to the maximum extent possible. For purposes of Section 409A, each installment payment provided under this Agreement shall be treated as a separate payment. Whenever a payment under this Agreement specifies a payment period with reference to a number of days, the actual date of payment within the specified period shall be within the sole discretion of the Company, and in no event may the Employee, directly or indirectly, designate the calendar year of any payment to be made under this Agreement, to the extent such payment is subject to Section 409A. Any payments to be made under this Agreement upon a termination of employment shall only be made upon a Separation from Service under Section 409A. The Company makes no representation or warranty and shall have no liability to the Employee or any other person if any provisions of this Agreement are determined to constitute deferred compensation subject to Section 409A but do not satisfy an exemption from, or the conditions of, Section 409A.

 

19. Claw-Back Policy

 

Any incentive based compensation, or any other compensation, paid or payable to the Employee pursuant to this Agreement or any other agreement or arrangement with the Company, which is subject to recovery under any law, government regulation, order or stock exchange listing requirement, will be subject to such deductions and clawback (recovery) as may be required to be made pursuant to law, government regulation, order, stock exchange listing requirement (or any policy of the Company adopted pursuant to any such law, government regulation, order or stock exchange listing requirement). The Employee specifically authorizes the Company to withhold from future wages any amounts that may become due under this provision; provided, however, nothing in this provision is intended to permit a change in the terms of payment of any deferred compensation subject to Section 409A in any manner that would violate or create a plan failure under Section 409A. This Section 19 shall survive the termination of this Agreement for a period of three (3) years.

 

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IN WITNESS WHERETO, the parties hereto have executed this Agreement as of the date first above written.

  

  CONCURRENT COMPUTER CORPORATION
     
  By: /s/ Derek J. Elder
  Derek J. Elder
  President and Chief Executive Officer
   
  EMPLOYEE
   
  /s/ Warren Sutherland
  Warren Sutherland

 

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Exhibit A

 

PROTECTIVE AGREEMENT

 

I, the undersigned, in consideration of and as a condition to my employment by Concurrent Computer Corporation (the “ Company ”), do hereby agree with the Company as follows:

 

1.           Noncompete and Nonsolicitation of Customers or Employees . During my employment by the Company, I will devote my full time and best efforts to the business of the Company and I will not, directly or indirectly, alone or as a partner, officer, director, employee or holder of more than 5% of the common stock of any other organization, engage in any business activity which competes directly or indirectly with the products or services being developed, manufactured or sold by the Company. I also agree that, following any termination of such employment, I will not, directly or indirectly, for any period in which I receive severance payments from the Company, plus one (1) year, (a) engage in or provide any services substantially similar to the services that I provided to the Company at any time during the last twelve (12) months of my employment to or on behalf of any person or entity that competes with the Company in the “real time” or “video-on-demand” businesses anywhere in the continental United States, which I acknowledge and agree is the primary geographic area in which the Company competes in these businesses and thus, by virtue of my senior executive position and responsibilities with the Company, also the primary geographic area of my employment with the Company, (b) solicit or attempt to solicit, for the purpose of competing with the Company in its “real time” or “video-on-demand” businesses, any customers or active prospects of the Company with which I had any material business contact for or on behalf of the Company at any time during the last twelve (12) months of my employment, or (c) recruit or otherwise seek to induce any employees of the Company to terminate their employment or violate any agreement with the Company.

 

2.           Trade Secrets and Other Confidential Information . Except as may be required in the performance of my duties with the Company, or as may be required by law, I will not, whether during or after termination of my employment with the Company, reveal to any person or entity or use any of the trade secrets of the Company for as long as they remain trade secrets. I also agree to these same restrictions, during my employment with the Company and for a period of three (3) years thereafter, with respect to all other confidential information of the Company, including its technical, financial and business information, unless such confidential information becomes publicly available through no fault of mine or unless it is disclosed by the Company to third parties without similar restrictions.

 

Further, I agree that any and all documents, disks, databases, notes, or memoranda prepared by me or others and containing trade secrets or confidential information of the Company shall be and remain the sole and exclusive property of the Company, and that upon termination of my employment or prior request of the Company I will immediately deliver all of such documents, disks, databases, notes or memoranda, including all copies, to the Company at its main office.

 

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Further, I agree that all Company property, such as, but not limited to cell phone(s), personal computer, software, PDAs, etc., shall be and remain the sole and exclusive property of the Company, and that upon termination of my employment or prior request of the Company I will immediately return all such property, to the Company.

 

3.           Inventions and Copyrights . If at any time or times during my employment (or within six (6) months thereafter if based on trade secrets or confidential information within the meaning of Paragraph 2 above), I make or discover, either alone or with others, any invention, modification, development, improvement, process or secret, whether or not patented or patentable (collectively, “ inventions ”) in the field of computer science or instrumentation, I will disclose in reasonable detail the nature of such invention to the Company in writing, and if it relates to the business of the Company or any of the products or services being developed, manufactured or sold by the Company, such invention and the benefits thereof shall immediately become the sole and absolute property of the Company provided the Company notifies me in reasonable detail within ninety (90) days after receipt of my disclosure of such invention that it believes such invention relates to the business of the Company or any of the products or services being developed, manufactured or sold by the Company. I also agree to transfer such inventions and benefits and rights resulting from such inventions to the Company without compensation and will communicate without cost, delay or prior publications all available information relating to the inventions to the Company. At the Company’s expense I will also, whether before or after termination of my employment, sign all documents (including patent applications) and do all acts and things that the Company may deem necessary or desirable to effect the full assignment to the Company of my right and title to the inventions or necessary to defend any opposition thereto. I also agree to assign to the Company all copyrights and reproduction rights to any materials prepared by me in connection with my employment.

 

4.           Conflicting Agreements . I represent that I have attached to this Agreement a copy of any written agreement, or a summary of any oral agreement, which presently affects my ability to comply with the terms of this Agreement, and that to the best of my knowledge my employment with the Company will not conflict with any agreement to which I am subject. I have returned all documents and materials belonging to any of my former employers. I will not disclose to the Company or induce any of the Company’s employees to use trade secrets or confidential information of any of my former employers.

 

5.           Protected Rights; Defend Trade Secrets Act . Nothing contained in this Agreement limits my ability to file a charge or complaint with the Equal Employment Opportunity Commission, the National Labor Relations Board, the Occupational Safety and Health Administration, the Securities and Exchange Commission or any other federal, state or local governmental agency or commission (collectively, “ Government Agencies ”), or prevents me from providing truthful testimony in response to a lawfully issued subpoena or court order.  Further, this Agreement does not limit my ability to communicate with any Government Agencies or otherwise participate in any investigation or proceeding that may be conducted by any Government Agency, including providing documents or other information, without notice to the Company. I understand that under the Defend Trade Secrets Act: (a) no individual will be held criminally or civilly liable under federal or state trade secret law for disclosure of a trade secret (as defined in the Economic Espionage Act) that is (i) made in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney, and made solely for the purpose of reporting or investigating a suspected violation of law; or (ii) made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal so that it is not made public; and (b) an individual who pursues a lawsuit for retaliation by an employer for reporting a suspected violation of the law may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if the individual files any document containing the trade secret under seal, and does not disclose the trade secret, except as permitted by court order.

 

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6.           Miscellaneous .

 

(a)          I hereby give the Company permission to use photographs of me, during my employment, with or without using my name, for any reasonable business purposes the Company deems necessary or desirable.

 

(b)          The Company shall have, in addition to any and all remedies of law, the right to an injunction, specific performance and other equitable relief as may be appropriate to prevent the violation of my obligations hereunder.

 

(c)          I understand that this Agreement does not create an obligation on the Company or any other person to continue my employment for any period of time.

 

(d)          This Agreement shall be construed in accordance with the laws of the State of Georgia. I agree that each provision of this Agreement shall be treated as a separate and independent clause, and the unenforceability of any clause shall in no way impair the enforceability of any of the other clauses. Moreover, if one or more of the provisions contained in this Agreement shall for any reason be held to be extensively broad as to scope, activity, time, geographical area or subject so as to be unenforceable at law, such provision or provisions shall be construed by the appropriate judicial body by limiting and reducing it or them so as to be enforceable to the maximum extent compatible with applicable law as it shall then appear.

 

(e)          My obligations under this Agreement shall survive the termination of my employment regardless of the manner of such termination for the time periods set forth in this Agreement, and shall be binding upon my heirs, executors and administrators.

 

(f)          The term “Company” as used in this Agreement includes Concurrent Computer Corporation and any of its subdivisions or affiliates. The Company shall have the right to assign this Agreement to its successors and assigns.

 

(g)          The foregoing is the entire agreement between the Company and me with regard to its subject matter, and may not be amended or supplemented except by a written instrument signed by both the Company and me. The section headings are inserted for convenience only, and are not intended to affect the meaning of this Agreement.

 

  /s/ Warren Sutherland
  Warren Sutherland
   
  Date: May 15, 2017

 

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Exhibit 99.1

 

CONCURRENT SELLS REAL-TIME BUSINESS SEGMENT FOR $35 MILLION TO BATTERY VENTURES; FOCUSES ON VIDEO STORAGE & DELIVERY MARKET OPPORTUNITY

 

Pro Forma Working Capital Position Increases by Approximately $30 Million; Board Examining Strategies to Maximize Shareholder Return

 

Warren Sutherland Appointed Chief Financial Officer

 

Conference Call Today at 5:00 p.m. ET

 

ATLANTA, May 15, 2017 – Concurrent Computer Corporation (NASDAQ: CCUR) has sold its Real-Time business segment to technology-focused investment firm Battery Ventures for gross proceeds of $35 million cash, subject to customary post-closing adjustments and indemnification obligations. The Real-Time business segment will operate as an independent, privately-held company doing business as Concurrent Real-Time, Inc. Concurrent Computer Corporation will focus its continuing operations on accelerating the growth of its existing video storage and delivery business, which addresses what industry analysts have estimated is currently a $3.7 billion a year market opportunity expected to grow 10% annually.

 

Concurrent is already an established leader in the video content delivery market and in 2015 launched the Aquari™ open-architecture video storage solution to meet the needs of current and potential customers impacted by the explosion of video content. Industry analysts project that by 2020, video will account for 79% of all global Internet traffic.

 

“Our business plan for Concurrent is now dedicated to expanding our leadership position in storage, protection, transformation, and delivery of high-value video assets,” said Derek Elder, President and CEO of Concurrent. “We will accomplish this through a combination of focus, differentiated solutions, and the stability of a strong balance sheet in a rapidly evolving marketplace.

 

“We have a solid foundation of blue chip broadcast customers that include many of the world’s leading telecommunications and cable television operators,” Mr. Elder continued. “By expanding our product portfolio through the Aquari platform, we are addressing adjacent, significantly larger market segments. During the first 10 months of our current fiscal year, we have already added nine new video storage customers including two that are existing video content delivery customers.”

 

Terms of the Agreement

 

Under terms of the agreement, today Concurrent has closed on the sale of the Real-Time segment’s global operations with the exception of its European operations. The European operations portion of the transaction will close upon approval of the transaction by the French Ministry of the Economy, which is pending. Of the $35.0 million in gross proceeds, $2.8 million is being held by the buyer Battery Ventures until the approval is received. In addition, $2.0 million of the transaction proceeds has been placed into escrow for future release to Concurrent, subject to various terms and conditions, on May 15, 2018. Concurrent recorded expenses of $1.1 million related to the transaction for the third quarter ended March 31, 2017.

 

 

 

 

Exhibit 99.1

 

Concurrent is reporting results for the third quarter ended March 31, 2017 today. Total revenue for the third quarter was $15.0 million. Revenue from the Content Delivery business segment (which includes the Aquari storage solution) was $7.5 million, which compares to $8.2 million for the third quarter of fiscal 2016, and trailing 12-month revenue from this segment totaled $28.6 million. Trailing 12-month revenue from the Real-Time business segment was $32.5 million. The Real-Time business segment will be classified as discontinued operations beginning in the fourth quarter of fiscal 2017.

 

Management believes that as a result of the Real-Time business segment sale, the pro forma working capital position of the Company has increased by approximately $30 million and the Board of Directors has initiated a process to evaluate strategies to maximize shareholder returns.

 

In connection with the closing of the transaction, the special banking committee of the Company’s board of directors that was formed to direct the work of its investment banking advisors and review the Company’s strategic alternatives has been dissolved.

 

Sutherland Named CFO

 

As part of a planned transition, Warren Sutherland has been named Chief Financial Officer of Concurrent. Mr. Sutherland previously served as the Company’s Vice President of Sales Operations, Information Technology and Financial Planning & Analysis. He has more than 16 years of financial and operational leadership experience with public and private companies in the high-tech and fin-tech industries. He succeeds Emory Berry who is leaving the Company after the Real-Time segment sale to pursue other career opportunities.

 

Mr. Sutherland held various financial management positions at Concurrent from 2000-2015, including Corporate Controller, and then joined Cardlytics as Vice President of Financial Planning & Analysis for one year before returning to Concurrent in mid-2016. He began his accounting career as an auditor with Arthur Andersen. He is a CPA and holds a Bachelor of Business Administration in Finance and Masters of Accountancy, both from the University of Georgia.

 

“I want to sincerely thank Emory Berry, who has worked tirelessly to improve the Real-Time operations over the years, and has worked side-by-side with me to maximize the value of Real-Time for our shareholders. His commitment and expertise is deeply appreciated and I wish him the very, very best. In addition, I look forward to working with Warren as Concurrent embarks on a new path of exciting opportunities and sincerely appreciate Emory’s contributions during his tenure with the Company,” said Mr. Elder.

 

 

 

 

Exhibit 99.1

 

Conference Call Details

 

Concurrent will host a conference call today at 5:00 p.m. Eastern Daylight Time to discuss the transaction, the Company’s opportunity in the video media delivery and storage market and the third quarter financial results. The conference call and related webcast materials can be accessed at www.concurrent.com and going to the “Investors” page. Participants can also listen to the conference call by dialing 800-230-1085 (domestic) or 612-288-0337 (international) and providing access code 170515. An archived version of the webcast will be accessible on the website.

 

Needham & Company, LLC served as exclusive financial advisor to Concurrent Computer Corporation in the transaction.

 

About Concurrent  

 

Concurrent (NASDAQ: CCUR) is a global software and solutions company that develops advanced applications focused on storing, protecting, transforming, and delivering high value media assets. We serve industries and customers that demand uncompromising performance, reliability and flexibility to gain a competitive edge, drive meaningful growth and confidently deliver best-in-class solutions that enrich the lives of millions of people around the world every day. Offices are located in North America, Europe and Asia. Visit  www.concurrent.com  for further information and follow us on Twitter: www.twitter.com/Concurrent_CCUR .

 

Safe Harbor

 

Certain statements made or incorporated by reference in this release may constitute "forward-looking statements" within the meaning of the federal securities laws. Statements regarding future events and developments and the company's future performance, including, but not limited to, management's expectations, beliefs, plans, estimates, or projections relating to the future, are forward-looking statements within the meaning of these laws. All forward-looking statements are subject to certain risks and uncertainties that could cause actual events to differ materially from those projected.

 

 

 

 

Exhibit 99.1

 

The risks and uncertainties which could affect our financial condition or results of operations include, without limitation: the potential consolidation of the markets that we serve; U.S. Government sequestration; European austerity measures; the impact of the U.K. exiting the European Union; delays or cancellations of customer orders; non-renewal of maintenance and support service agreements with customers; changes in product demand; economic conditions; various inventory risks due to changes in market conditions; margins of the content delivery business to capture new business; our ability to obtain regulatory approval for the sale of the European operations of our Real-Time business within the timeframe anticipated or at all; our ability to reinvest the net proceeds from the sale of our Real-Time segment in a manner that we believe will generate an adequate return to our remaining business; fluctuations and timing of large content delivery orders; risks associated with our operations in the People’s Republic of China; uncertainties relating to the development and ownership of intellectual property; uncertainties relating to our ability and the ability of other companies to enforce their intellectual property rights; the pricing and availability of equipment, materials and inventories; the concentration of our customers; failure to effectively manage change; delays in testing and introductions of new products; the impact of reductions in force on our operations; rapid technology changes; system errors or failures; reliance on a limited number of suppliers and failure of components provided by those suppliers; uncertainties associated with international business activities, including foreign regulations, trade controls, taxes, tariffs and currency fluctuations; the impact of competition on the pricing of content delivery products; failure to effectively service the installed base; the entry of new, well-capitalized competitors into our markets; the success of new content delivery products, including acceptance of our new storage solutions; the success of our relationships with technology and channel partners; capital spending patterns by a limited customer base; the current challenging macroeconomic environment; continuing unevenness of the global economic recovery; global terrorism; privacy concerns over data collection; our ability to utilize net operating losses to offset cash taxes in the event of an ownership change as defined by the Internal Revenue Service; earthquakes, tsunamis, floods and other natural disasters in areas in which our customers and suppliers operate; the process of evaluation of strategic alternatives; and the availability of debt or equity financing to support our liquidity needs.

 

Other important risk factors are discussed in Concurrent's Form 10-K filed August 30, 2016 with the Securities and Exchange Commission ("SEC"), and in subsequent filings of periodic reports with the SEC. The risk factors discussed in the Form 10-K and subsequently filed periodic reports under the heading "Risk Factors" are specifically incorporated by reference in this press release. Forward-looking statements are based on current expectations and speak only as of the date of such statements. Concurrent undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of future events, new information, or otherwise.

 

Concurrent Computer Corporation and its logo are registered trademarks of Concurrent. All Concurrent product names are trademarks or registered trademarks of Concurrent while all other product names are trademarks or registered trademarks of their respective owners.

 

For more information, contact:

 

EVC Group, Inc.

Doug Sherk

Phone: (415) 652-9100

Email: dsherk@evcgroup.com

 

Todd Kehrli

Phone: (310) 625-4462

Email: tkehrli@evcgroup.com