Common use of Additional Salary Clause in Contracts

Additional Salary. (i) In addition to the base salary, the Executive shall be paid an additional salary (the "Additional Salary") subject to and in accordance with the provisions of this Section 2.1(b). Net Income of the Employer shall be determined for each of the following periods (each a "Period"): (1) the Effective Date through December 31, 2003, (2) January 1, 2004 through December 31, 2004, (3) January 1, 2005 through December 31, 2005, and (4) each succeeding calendar year during the term hereof. If Net Income of the Employer for any Period shall be positive then promptly after the calculation of such Net Income of the Employer for such Period, the Executive will be paid compensation as Additional Salary equal to $55,000, provided that (1) with respect to the first Period and the last Period (if it consists of less than 12 months) said amount of $55,000 will be prorated, (2) commencing with calendar year 2008 said amount of $55,000 will increase 5% per annum and (3) if (I) Net Income of the Employer for the Period ending December 31, 2003 is not positive and/or Net Income of the Employer for the Period ending December 31, 2004 is not positive and/or due to the provisions of Section 2.1(b)(ii) the Executive does not receive the full Additional Salary for one or both of said first two Periods and (II) the Net Income for the Period ending December 31, 2005 is positive, then in addition to the Additional Salary payable for the Period ending December 31, 2005, the Executive will also be entitled to receive Additional Salary for such prior Period(s) when Net Income of the Company was not positive or was insufficient to pay the total Additional Salary, subject, however to the provisions of Section 2.1(b)(ii) below. As used herein, the term "Net Income of the Employer" shall mean net income of the Employer (A) before acquisition debt service, but after debt service incurred in the ordinary course of business for operating expenses (whether a term or revolving facility); (B) before federal, state and local taxes, amortization, depreciation and other non-cash expenses, (C) without including extraordinary non-recurring expenses (including without limitation, severance payments to employees and one time extraordinary charges) and (D) after deducting a management fee to Ascend Retail Investment LLC in amount of $1,000,000.