The Executive will be paid a base salary at the initial rate of $300,000 per year (the “ Base Salary ”). Base Salary will be automatically increased by $25,000 per year on each anniversary of the Effective Date until the Base Salary has reached $350,000 per year and thereafter shall be subject to annual review for additional increase, but not decrease, in the sole discretion of the Board. The Base Salary will be payable in equal periodic installments in accordance with Reed’s customary payroll practices.