The Company shall pay Executive an annual base salary (“ Base Salary ”) in an amount no less than $275,000. The Base Salary shall be paid in accordance with the Company’s payroll practices in effect from time to time. Effective on each January 1 during the Term of this Agreement, the Base Salary may be increased as determined by the Company’s Compensation Committee in the annual budget commensurate with cost of living adjustments awarded to other executives of the Company. Nothing herein shall guarantee that Executive’s Base Salary will be increased during the Term.