EXHIBIT 10.3

 

Summary of Annual Bonus Program

(Approved July 27, 2004)

 

Mercury’s Executive Bonus program provides additional cash compensation based on
achieving personal, business unit and corporate goals. An executive’s individual
bonus program is determined based on position, title, responsibilities, and
total target cash compensation, and is subject to change from year to year.

 

Target Award as % of Base Salary

 

The target award ranges from 35% to 70% of base salary depending upon position.

 

Position

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Target Award

% of base

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CEO

   70 %

Senior VP

   45 %

Corporate VP

   35 to 45 %

 

Bonus Components

 

Bonus opportunities are comprised of two components:

 

  •   Individual (Management by Objectives—MBO)

 

  •   Corporate Financial (Revenue, Profit, & Working Capital)

 

The target award % combines both MBO Bonus and the Corporate Financial Bonus and
is weighted according to position. Financial based goals are established as part
of the annual operating budget at the start of the fiscal year.

 

Position

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   Corporate
(Revenue & Profit)

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   Weightings%
Individual
(MBO)

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CEO

   60    40

Senior VP

   55    45

Corporate VP

   0-50    50-100