Common use of Compensation Payable to Consultant Clause in Contracts

Compensation Payable to Consultant. (a) The Company shall pay to Consultant a sum equal to the rate of $700,000 per annum. (b) Consultant's annual payments shall be paid in accordance with the Company's regular policy but not less frequently than once a month. (c) Of each regular payment, approximately 35.714% shall be deferred (the "monthly deferred amount"), so as to result in the deferral of payment of Consultant's salary at the annual rate of approximately $250,000 per annum. Each such monthly deferred amount shall bear interest, compounded annually, at the rate of 8% per annum, from the first day of the month of deferral to, but not including, the Determination Date. A statement will be furnished to Consultant annually, on or about February 1st of each year, stating the sum of the monthly deferred amounts and the amount of interest accrued thereon as of the preceding December 31st. As used herein, "Determination Date" shall mean the first business day of the first full calendar month following the later of (i) December 31, 2002, and (ii) the date Consultant ceases to be a consultant pursuant to this Agreement.

Compensation Payable to Consultant. (a) The Company shall pay to Consultant a sum equal to the rate of $700,000 per annum. (b) Consultant's annual payments shall be paid in accordance with the Company's regular policy but not less frequently than once a month. (c) Of each regular payment, approximately 35.714% shall be deferred (the "monthly deferred amount"), so as to result in the deferral of payment of Consultant's salary at the annual rate of approximately $250,000 per annum. Each such monthly deferred amount shall bear interest, compounded annually, at the rate of 8% per annum, from the first day of the month of deferral to, but not including, the Determination Date. A statement will be furnished to Consultant annually, on or about February 1st of each year, stating the sum of the monthly deferred amounts and the amount of interest accrued thereon as of the preceding December 31st. As used herein, "Determination Date" shall mean the first business day of the first full calendar month following the later of (i) December 31, 2002, and (ii) the date Consultant ceases to be a consultant pursuant to this Agreement.. 3