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MobiTV employee retention plan OK’d; incentive plan hearing April 16
By Sarah Lizee
Olympia, Wash., April 8 – MobiTV, Inc. received court approval to implement a key employee retention plan for non-insider employees, according to an order filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.
Under the 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, as previously reported.
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.
The company also sought court approval of a key employee incentive plan for senior leadership employees, but the proposed KEIP was later amended. Wednesday’s order said a hearing on the modified KEIP will be held on April 16.
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 T-Mobile’s termination of the TVision services, 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 $30 million, the total second trance KEIP payment would be $820,894.
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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