The Executive’s annual base salary shall be one hundred seventy-five thousand dollars ($175,000) (together with any subsequent increases thereto as hereinafter provided, the “ Base Salary ”). In the event in any calendar year during the Term, the Company achieves Adjusted EBITDA (as determined by the Company’s accountants from the audited financial statements included in the Company’s Annual Report on Form 10-K) of $3,500,000, the Executive’s annual Base Salary shall automatically increase to $250,000 and in the event in any calendar year during the Term, the Company achieves Adjusted EBITDA (as determined by the Company’s accountants from the audited financial statements included in the Company’s Annual Report on Form 10-K) of $5,000,000, the Executive’s annual Base Salary shall automatically increase to $325,000. The Base Salary shall be payable in accordance with the Company’s normal payroll procedures in effect from time to time. In addition to the foregoing, the Base Salary may be increased by the Board or its compensation committee (the “ Committee ”), if any, from time to time during the Term, but shall be reviewed by the Board or the Committee, if any, at least annually.