Salary Accrual. If for any reason Executive shall accrue any portion of his salary beyond the time frame stated in section 8.
1. A, Executive may demand payment, at any time, by means of registered S-8 stock of the Company. Employer shall pay for all costs of such registration. Valuation of such stock will be based upon 85% of the 5 day average of the Closing price of the Company's common stock as quoted on the Over the Counter Bulletin Board or other stock exchange.
Salary Accrual. Contract Termination - The Company and the Executive are parties to an Employment Agreement dated as of May 12, 2004, as amended (the “Employment Agreement”). Pursuant to the terms of the Employment Agreement, the Employee was entitled to be paid an annual salary of $300,000 and a discretionary bonus in an amount determined by the Board of Directors of the Company. In addition, the Employee was entitled to a series of stock grants over a four year period ending January 2, 2008 and a severance payment equal to his salary for the lesser of three years or the then remaining term of the Employment Agreement in the event that his employment was terminated following a change of control of the Company. The Company has been unable to and has failed to pay the Executive his normal salary for the past six months and as a consequence has incurred an obligation to the Executive for accrued salary in an amount equal to $150,000. Pursuant to the terms of the Purchase Agreement, the Executive will be relinquishing his ownership of the Company’s outstanding Series F Preferred Stock and the “Investors” (as such term is defined in the Purchase Agreement) will be purchasing shares of the Company’s newly created Series G Preferred Stock, as a consequence of which a change of control of the Company could be deemed to have occurred. The Investors have conditioned their willingness to enter into the Purchase Agreement on a requirement that the Executive’s employment with the Company be terminated and that the Executive resign as an officer and director of the Company thereby potentially imposing on the Company a requirement that it pay severance to the Executive in an amount equal to 18 months of salary, such being the currently remaining term of the Employment Agreement. Accordingly, the aggregate unpaid salary and severance of the Executive against the Company may exceed $600,000. The Company and the Executive agree to settle such claims for an amount equal to $325,000 and the remaining balance is hereby forgiven by the Executive.
Salary Accrual. In recognition of Employer's status as a "development stage" company, as that term is defined in Statement of Financial Accounting Standards No. 7 (June 1, 1975, the Parties have agreed that the Base Salary to be paid to Executive under Section 4.1, above shall be accrued up to and until Employer has the financial ability to pay Executive the Base Salary. In accruing the Base Salary, Employer shall maintain accurate books and records in accordance with generally accepted accounting principles consistently applied, and shall reflect all earned, accrued, and unpaid Base Salary as a
Salary Accrual. One year of part-time service with the District shall count as a year's full service for the purpose of advancement on the salary scale.
