jakncoke
03-02-2009, 08:29 AM
Midway Games Inc. and its affiliates filed a motion on February 23, 2009 seeking court authority to implement a key employee incentive plan covering up to 29 employees. Midway Games filed for bankruptcy protection on February 12, 2009 (more details are available here).
The motion describes the group of 29 eligible employees as “officers, management-level employees and other non-insider key employees.” The proposed plan ties bonus payments to three designated milestones. If all milestones are met, the total bonus pool available for distribution would be $3,755,000. For each milestone payment, each employee eligible to participate in the plan would receive a set percentage of the bonus amount designated for that milestone. The three milestones and the bonus amounts for each milestone are:
1. Milestone: Entry into a publishing/distribution agreement for Midway’s new “Wheelman” game (apparently already accomplished), performance by Midway entitling it to gross proceeds of $6 million under the agreement by March 1, 2009, and actual receipt of those proceeds. Bonus Amount: $497,500.
2. Milestone: Either (i) execution of an asset purchase agreement for the sale of Midway’s Mortal Kombat franchise assets or (ii) submission by Midway of a plan of reorganization to continue as a going concern. Bonus Amount: $1,292,500.
3. Milestone: The earlier to occur of (i) confirmation of a plan of reorganization or liquidation or (ii) closing of a sale of Midway’s Mortal Kombat franchise assets. Bonus Amount: $1,965,000.
They must be in a real bad way, wonder if Namco/Capcom steps up to the plate so they can create a Tekken vs. MK or Soul Caliber vs. MK or Street Fighter vs. MK or them step up just to have another IP
The motion describes the group of 29 eligible employees as “officers, management-level employees and other non-insider key employees.” The proposed plan ties bonus payments to three designated milestones. If all milestones are met, the total bonus pool available for distribution would be $3,755,000. For each milestone payment, each employee eligible to participate in the plan would receive a set percentage of the bonus amount designated for that milestone. The three milestones and the bonus amounts for each milestone are:
1. Milestone: Entry into a publishing/distribution agreement for Midway’s new “Wheelman” game (apparently already accomplished), performance by Midway entitling it to gross proceeds of $6 million under the agreement by March 1, 2009, and actual receipt of those proceeds. Bonus Amount: $497,500.
2. Milestone: Either (i) execution of an asset purchase agreement for the sale of Midway’s Mortal Kombat franchise assets or (ii) submission by Midway of a plan of reorganization to continue as a going concern. Bonus Amount: $1,292,500.
3. Milestone: The earlier to occur of (i) confirmation of a plan of reorganization or liquidation or (ii) closing of a sale of Midway’s Mortal Kombat franchise assets. Bonus Amount: $1,965,000.
They must be in a real bad way, wonder if Namco/Capcom steps up to the plate so they can create a Tekken vs. MK or Soul Caliber vs. MK or Street Fighter vs. MK or them step up just to have another IP