As compensation for his services hereunder, during the Term, the Company shall pay the Executive in accordance with its normal payroll practices, an annualized base salary of $475,000 (“ Base Salary ”). During the Term, the Company will also provide the Executive with an annual perquisite allowance equal to $50,000 per year (the “ Perquisite Allowance ”), to cover the costs of leasing, insuring and maintaining an automobile, professional dues, as well as other perquisites (including club dues), to be paid in accordance with the Company’s normal payroll practices. The Base Salary will subject to periodic review by the Human Resources & Compensation Committee of the Board of Directors of the Company to determine appropriate increases, if any, in accordance with the Company’s practices and policies for other senior executives. The Base Salary will not be reduced as a result of any such review.