MobiTV seeks bankruptcy court approval of key employee bonus plans

By Sarah Lizee

Olympia, Wash., March 12 – MobiTV, Inc. is seeking court approval to implement a key employee incentive plan for senior leadership employees and a key employee retention plan for non-insider employees, according to a motion filed Friday with the U.S. Bankruptcy Court for the District of Delaware.

The KEIP covers three senior leadership employees, including the chief executive officer, chief operating officer and chief financial officer.

There are two tranches of awards under the KEIP, the first being earned upon the transfer of the TVision services as a going concern to a third-party operator, and subject to performance reduction. The first KEIP awards would be for a maximum of $240,056 to be paid out of the debtors’ debtor-in-possession facility.

The second awards would be earned upon the successful sale of the debtors’ assets based on the total sale proceeds.

The second KEIP awards are cumulative, based on a percentage of the proceeds from any asset sale. For example, if the proceeds are equal to or greater than $40 million, 3.5% of the proceeds will be used for the award.

Under the proposed KERP, each non-insider employee will receive between 5% and 25.1% of the non-insider employee’s annual base salary, depending on the non-insider employee.

The maximum cost of the KERP is about $1.3 million and represents roughly 9.5% of the non-insider employees’ base salaries, in total.

MobiTV is an Emeryville, Calif.-based provider of live and on-demand video delivery solutions. The company filed bankruptcy on March 1 under Chapter 11 case number 21-10457.

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