Common use of Deferred Compensation Agreement Clause in Contracts

Deferred Compensation Agreement. The Company agrees to pay an annual amount that is payable in equal monthly installments in the amounts specified in subsections (a) and (b) below on the first day of each month (the "Deferred Compensation Payments") to the Director (or if the Director dies, to his beneficiary as provided in Section 4(a) of the Agreement) during the Term (as hereinafter defined). (a) ANNUAL AMOUNT PRIOR TO JANUARY 1, 1999. The Company agrees to pay an annual amount of $167,000 payable in equal monthly installments on the first day of each month during the Term until December 31, 1998. (b) ANNUAL AMOUNT AFTER DECEMBER 31, 1998. The Company agrees to pay an annual amount of $83,500 payable in equal monthly installments on the first day of each month commencing after December 31, 1998 until the end of the Term. If the financial performance of the Company improves, as determined by the Compensation Committee in its sole and absolute discretion, the Compensation Committee, in its sole and absolute discretion, may determine to restore the annual amount payable to the Director under subsection (b) above to the original annual amount of $167,000.