ORDER ON DEBTORS' MOTION FOR AUTHORIZATION TO AMEND KEY EMPLOYEES' RETENTION PLAN AND FOR MODIFICATION OF ORDER APPROVING DEBTORS' IMPLEMENTATION OF KEY EMPLOYEES' RETENTION PLAN NUNC PRO TUNC
PATRICIA WILLIAMS, Chief Judge, Bankruptcy
THIS MATTER having come before the court upon the Motion of Metropolitan Mortgage Securities Co., Inc. and Summit Securities, Inc. (collectively "Debtors") for Authorization to Amend Key Employees' Retirement Plan and for Modification of Order Approving Debtors' Implementation of Key Employees Retention Plan Nunc Pro Tunc (Docket No. 2226), and the objections filed with respect thereto by the Official Unsecured Creditors' Committees of both Debtors, and it appearing that the parties have agreed to the entry of this order, and good cause otherwise appearing,
IT IS ORDERED:
1. This order is with respect to the following remaining employees of the Debtors who were previously made eligible for participation in the Key Employees Retention Plan ("KERP"): Wilfred Arsenault; Kell Bodholt; Pamela Carlson; Stephanie Gregg; Brian Reid; and Christopher Wright (the "Eligible Employees").
2. With respect to the Eligible Employees, each shall receive the balance of his or her KERP payment upon termination of such Eligible Employee's employment by the Debtors (other than for cause) due to the completion of services by such Eligible Employee for the Debtors.
2.1 A Chapter 7 Trustee may seek to retain one or more Eligible Employee following a conversion of either Chapter 11 proceeding to a Chapter 7 case. Eligibility to receive the balance of the Affected Employee's KERP payment shall not be affected or triggered by the conversion of either of the Debtors' cases to a proceeding under Chapter 7 of the Bankruptcy Code or by confirmation of a Plan of Reorganization under Chapter 11 of the Bankruptcy Code. That is, following any conversion of either case to a proceeding under Chapter 7, payment of the balance of the KERP benefit to an Eligible Employee shall still be payable upon completion of services by such Eligible Employee for the Chapter 7 trustee.
2.2 A deemed termination arising solely by the fact of the conversion of either case to a proceeding under Chapter 7 of the Bankruptcy Code shall not trigger payment of the balance of the KERP benefit or abrogate the payment of the balance of the KERP benefit in accordance with the terms of this order.
2.3 In the event that an employee voluntarily terminates his or her employment with the Debtors prior to completion of all services to the Debtors, such Eligible Employee shall not be eligible for payment of the balance of his or her KERP benefit.
3. Except as specifically modified herein, or by subsequent order of the Court, the terms and conditions of the July 16, 2004 Order Approving Debtors' Implementation of a Key Employees Retention Plan shall remain in full force and effect.
4. The remaining balances of KERP benefit that may become payable to an Eligible Employee pursuant to the KERP Plan are as follows:
Balance of
Employee KERP Benefit Wilfred Arsenault $33,750 Kell Bodholt $45,000 Pamela Carlson $ 6,750 Stephanie Gregg $ 5,250 Brian Reid $33,750 Chris Wright $45,000
5. This order does not address or determine the remaining issues raised by Debtors' Motion, which are reserved by the parties. Hearing on Debtors' motion currently scheduled on April 7, 2005 is hereby stricken, without prejudice to Debtors' renoting the same.