The Company shall pay the Executive an annual salary of $181,000 less applicable payroll deductions and tax withholdings (the “ Base Salary ”) for all services rendered by the Executive under this Agreement. Notwithstanding the foregoing, the Base Salary shall automatically increase to: (i) $200,000, less applicable payroll deductions and tax withholdings, effective as of January 1 of the calendar year immediately following any calendar year during which the Company generates gross sales (as determined in accordance with generally accepted accounting principles consistently applied) exceeding $1,000,000; and (ii) $225,000, less applicable payroll deductions and tax withholdings, effective as of January 1 of the calendar year immediately following any calendar year during which the Company generates gross sales (as determined in accordance with generally accepted accounting principles consistently applied) exceeding $2,000,000. The Company shall pay the Base Salary in accordance with the normal payroll practices of the Company.