Employee will be paid a Base Salary of two hundred seventy-five thousand dollars ($275,000.00) per year subject to normal payroll withholdings, except that Employee will receive fifty (50%) of his Base Salary until the CEO and Board of Directors have determined the Company's liquidity and capitalization position can reasonably support payment of the full amount of the Base Salary. The Company will establish an accrual on its balance sheet for the unpaid portion of the Base Salary.  Employee's Base Salary will increase 5% on each anniversary of the Effective Date during the Employment Period.