The Employer shall pay to Employee a base salary at the initial rate of $550,000 per year, less applicable taxes and withholdings, payable in regular installments per the Company's general payroll practices, and prorated for partial years of employment (the “ Base Salary ”).  The Company in its sole discretion may increase the Base Salary from time to time, without otherwise affecting this Agreement.  The Company may not decrease Employee’s Base salary except (i) with the prior written approval of Employee, or (ii) as part of across-the-board salary cuts affecting all Senior Vice Presidents and above, as approved by the Board of Directors of State National or its designee (the “ Board ”).