Why is Malcolm getting a raise this year ?
2. CASH AND INCENTIVE COMPENSATION.
(a) SALARY. Except as contemplated by Section 2(b)
below, the Company shall pay the Employee as compensation for his services a
base salary at a gross annual rate of $265,000. Such salary shall be adjusted to
$390,000 effective January 1, 2006, and thereafter, on an annual basis by the
Board of Directors, and payable in accordance with the Company's standard
payroll procedures. (The annual compensation specified in this Subsection (a),
together with any increases in such compensation that the Company may grant from
time to time, is referred to in this Agreement as "Base Compensation.")
(b ) BONUS. The Employee shall be eligible to
receive a cash bonus each year during the Term hereof based upon the increase in
share price of the Company's stock as measured by comparing the twenty trading
day average for the period ending December 31 of the prior year versus the
twenty day trading average for the period ending December 31 of the year in
question, and multiplying the percentage increase in such share price, if any,
times the Employee's Base Compensation for the year in question; provided,
however, that in no event shall a bonus be payable unless the percentage
increase in share price is at least fifteen percent (15%) from the prior year's
period.
"If the facts don't fit the theory, change the facts."
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