**EXHIBIT 10.3**

 

**Summary of Executive Salary and Bonus Arrangements**

 

The table below summarizesthe current annual salary and bonus arrangements we have with each of ourcurrent executive officers. All of the compensation arrangements we have withour executive officers, including with respect to annual salaries and bonuses,are reviewed and may be modified from time to time by the CompensationCommittee of our Board of Directors. The Compensation Committee approved theannual salary and bonus arrangements noted in the table below.

 

We have written employmentarrangements with each of our executive officers, and a copy of each suchemployment arrangement has been filed as an exhibit to the accompanyingQuarterly Report on Form 10-Q and our Annual Report on Form 10-K forthe year ended December 31, 2007 filed with the SEC on March 17,2008, as applicable. The non-salary and bonus components of our compensationarrangements with our executive officers, including with respect to severance,option grants and other benefits, are described in those respective agreements.We generally pay bonuses, if any, to our executive officers on a quarterlybasis. Mr. Hayek is paid bonus annually, if any. Certain of our executiveofficers participate in the executive bonus plan that was adopted by theCompensation Committee on February 9, 2005, a description of which isfiled as Exhibit 10.33 to our Annual Report on Form 10-K for the yearended December 31, 2007 filed with the SEC on March 17, 2008. Inaddition to the bonus arrangements noted in the table below, all of ourexecutive officers are eligible for discretionary bonuses as determined fromtime to time by the Compensation Committee.

 
| *Executive Officer*                                                                     | ** ** | ** ** | **Annual  Base Salary** | ** ** | ** ** | ** ** | **Bonus** | ** ** | ** ** |
|----------------------------------------------------------------------------------------------|------------|------------|------------------------------|------------|------------|------------|-----------|------------|------------|
| Frank F. Khulusi   Chairman, President and Chief Executive Officer                           |       | $          | 800,000                      |       | (1)        |       |
|                                                                                         |       |       |                         |       |       |
| Brandon H. LaVerne   Interim Chief Financial Officer, Treasurer and Chief Accounting Officer |       | $          | 206,748                      |       | (2)        |       |
|                                                                                         |       |       |                         |       |       |
| Kristin M. Rogers   Executive Vice President—Sales and Marketing                        |       | $          | 335,000                      |       | (1)        |       |
|                                                                                         |       |       |                         |       |       |
| Daniel J. DeVries   Executive Vice President—Consumer                                   |       | $          | 275,000                      |       | (1)        |       |
|                                                                                         |       |       |                         |       |       |
| Joseph B. Hayek   Executive Vice President—Corporate Development and Investor Relations |       | $          | 225,000                      |       | (3)        |       |
|                                                                                         |       |       |                         |       |       |
| Robert I. Newton   General Counsel and Secretary                                             |       | $          | 300,000                      |       | (4)        |       |
|                                                                                              |            |            |                              |            |            |            |           |            |            |  |

 

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(1)  Mr. Khulusi, Ms. Rogers and Mr. DeVries are eligible toparticipate in our executive bonus plan referenced above.

 

(2)  Mr. LaVerne is eligible to receive an annual bonus of up to$56,000, paid in quarterly installments, as well as discretionary bonuses asdetermined from time to time by the Compensation Committee.

 

(3)  Mr. Hayek is eligible to receive an annual discretionary bonus inthe initial targeted annual amount of $50,000, which will be paid annually inaccordance with a to be established bonus plan or program.

 

(4)  Mr. Newton is eligible to receive an annual bonus of up to$120,000, paid in quarterly installments, as well as discretionary bonuses asdetermined from time to time by the Compensation Committee.