Frequently Asked Questions by Employees

1. Why doesn't the amount owed listed on Exhibit 1 include the commissions, business expenses, notary fees or bonus that I claimed?

If you claimed commissions, business expenses, notary fees or a bonus payment and that amount is not included in the amount owed listed on your Exhibit 1, you did not provide sufficient documentation to support your claim. For example, if you claimed unpaid business expenses, but did not provide the receipts, the amount was not included in the amount owed. You can submit any additional documentation that you have but did not provide with your claims by submitting them with your Response to Notice of Proposed Allowance And/Or Disallowance of Wage Claims.

2. Why doesn't the amount owed listed on Exhibit 1 include auto allowance amounts I claimed?

Auto allowances were paid by Mercury and its subsidiaries either once or twice a month, depending on their agreements with their employees. Unlike salary payments, auto allowance payments were not paid in arrears. If you claimed an unpaid auto allowance for July, Mercury reviewed whether you were paid your full auto allowance in July and only included auto allowance amounts if they were not paid in July.

3. Why doesn't the amount owed listed on Exhibit 1 include payment for unused sick pay?

Pursuant to the employee handbooks that each of the debtors had, terminated employees are entitled to payment for accrued and unused vacation pay but not for unused sick pay.

4. I had an employment agreement and claimed payment through the remaining term of my contract, why doesn't the contract damages amount equal what I claimed.

Under bankruptcy law, an individual who has an employment agreement can only claim damages for one year following the earlier of 1) the date his or her employer filed a bankruptcy petition or 2) the date on which the employer terminated his or her employment.

5. I thought that wage claims were entitled to priority up to $10,950. Why don't I have $10,950 in priority claims?

There are several reasons why your Exhibit 1 might include less than $10,950 in priority. First, your total claim might be less than $10,950. Second, part of your claim might not be entitled to priority. For example, auto allowance, business expenses, contract damages, and vacation accruals that occurred more than 180 day prior to your company's closure, are not entitled to priority. Third, if you are entitled to a contribution to your 401(k) plan because your contribution from your June 22, 2008 paycheck was not deposited to your account, those funds are entitled to priority. The amount of priority that occurs on your Exhibit 1 plus the amount you are owed in 401(k) contributions cannot exceed $10,950.

6. Does the fact that Exhibit 1 says that specific amounts are owed to me mean that I will be paid that amount?

No. What it means is that your claim has been accepted as a valid claim against the listed debtor in the amount stated. Exactly what will be paid to you will depend on how much money the debtor has available for payment of claims in the same class as your claim. Employee wage claims, to the extent they are designated as priority claims are entitled to payment after costs of administration and before taxes and before non-priority wage claims. All claims in any priority class will be paid in full before any lower priority claim receives payment. If there are insufficient funds to pay a class in full, the claims in that class will receive only partial payment and the claims in lower priority classes will receive nothing.. Once the debtor has reviewed all of its claims and determines exactly what it can pay, it will submit a plan to the court detailing how it proposed to address all of its claims. You will get notice of that plan.

7. When is payment likely to be received for claims?

It is Mercury's intention to seek permission to make payments on priority wage claims before the end of 2009; however no assurance can be given that this objective can be achieved. If substantial disputes arise as to the amount or priority of claims, payment will be delayed until those disputes can be resolved.